When a companys goodwill is impaired, management often discuss the writedown as a non-cash accounting charge and

Question:

When a company’s goodwill is impaired, management often discuss the writedown as a non-cash accounting charge and emphasize that it does not represent a loss of cash. Is this a fair way to present the impairment charge? Did the company lose any cash as a result of the writedown?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...

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