Question: wk 2-1 Please explain and provide examples In 2015, Microsoft Corporation reported a $5.1 billion charge for the impairment of goodwill and a $2.2 billion

wk 2-1 Please explain and provide examples

In 2015, Microsoft Corporation reported a $5.1 billion charge for the impairment of goodwill and a $2.2 billion charge for the impairment of intangible assets in one of its reporting units (segments) in its 10-K annual report. Referring to Microsoft's 2015 financial statements and any other information from the media, address the following:

  • Microsoft's segments serve as its reporting units for assessing goodwill for potential impairments. Which segment suffered a 2015 impairment? Describe the revenue model for this segment.
  • What were the underlying business reasons that required Microsoft to record a goodwill impairment in 2015?
  • How did Microsoft reflect the 2015 goodwill impairment in its income statement and cash flow statement?
  • Describe the goodwill impairment testing steps performed by Microsoft in 2015 and the consequent loss measurement.

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