Bloomberg Tax
May 7, 2020, 8:46 AM

Coronavirus Triggers Goodwill Markdowns in Hard-Hit Industries

Nicola M. White
Nicola M. White

Carnival Corp., the company that makes Stuart Weitzman stilettos, and a major energy technology company are among the businesses this quarter forced to significantly mark down the value of goodwill on their balance sheets. They point to a familiar foe for exacerbating the losses: the coronavirus.

As the pandemic continues to roil the economy, and companies lower their expectations about acquisitions paying off, expect more companies to report impairments to the key intangible asset they put on their books when they buy other businesses.

And if the losses don’t happen, expect companies to explain how they’re bracing for them. ...

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