Requirements of the case study:This is the first year in which AM has implemente

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Requirements of the case study:This is the first year in which AM has implemented its policy of performing formal quantitative goodwill impairment tests. In preparation for the upcoming financial statement audit of AM and its subsidiaries, and for future audits, Mickelson would like you to provide documentation of the process that should be used in determining the appropriate goodwill valuation in accordance with U.S. GAAP.
Please provide a step-by-step list or decision diagram/flowchart that details the general process of assessing goodwill impairment. There are at least three major decision steps within the process. Each major decision, though, has its own set of steps. Each step should be accompanied by a decision along with a justification for the course of action as indicated by the Financial Accounting Standards Board Accounting Standards Codification. You should prepare your documentation such that it can be applied to a broad array of scenarios involving goodwill impairment and, thus, it must extend beyond the specific fact patterns presented in the case text.
Based upon your knowledge of the facts presented in the case and appropriate authoritative guidance, Mickelson has asked you to oversee the testing of goodwill impairment for ZD and Hope and to ultimately determine, based on the information provided by Roberts, the valuation of goodwill and the related impairment loss, if any, for the Household Goods segment. Please provide any relevant calculations either as part of the body of your Word document submission or in a separate Excel file.
Beyond the company’s compliance with U.S. GAAP, AM’s institutional shareholders are most concerned with the quality of the financial information that they are provided, and its ability to affect their investing decisions. In past shareholder meetings, AM investors have been particularly interested in goodwill valuations of recent acquisitions, given AM’s role in the market as a conglomerate.
In anticipation of questions surrounding goodwill at the upcoming shareholder meetings, Mickelson would like you to provide a written, maximum two-page, single-spaced memo containing (1) an explanation of why you chose (or did not choose) to early adopt the goodwill impairment testing provisions of ASU 2017-04; and (2) an evaluation of the efficacy of the reported goodwill amount from Requirement 2 in contributing to the quality of the information reported to AM shareholders and the public. Be sure to consider differences between the specific goodwill impairment guidance and the related theoretical guidance from the Financial Accounting Standards Board Conceptual Framework, along with the political and practical forces that may have caused them.
Pay particular attention to the Implementation Guidance portion which appears at the end of the Case Study.
Project Submission Requirements:Be sure to discuss and reference concepts taken from the required and recommended readings throughout the course and also from your own relevant research.
Include a title page and reference page.
Your Project submission should include the following:
a step-by-step list or decision diagram/flowchart that details the general process of assessing goodwill impairment. Please provide any relevant calculations either as part of the body of your Word document submission or in a separate Excel file.
a written, maximum two-page, single-spaced memo containing (1) an explanation of why you chose (or did not choose) to early adopt the goodwill impairment testing provisions of ASU 2017-04; and (2) an evaluation of the efficacy of the reported goodwill amount from Requirement 2 in contributing to the quality of the information reported to AM shareholders and the public.
a minimum of 6 credible, academic, or professional references beyond the course text, required and recommended readings, or other course materials. The following resources have been provided. You may wish to use them for review and/or incorporate them into your assignment as cited references.PwC. (2017). Intangibles—Goodwill and other (Topic 350): Simplifying the test for goodwill impairmen. FASB.
PwC. (2023). Navigating goodwill impairment testing guidance: Observations from the front line.
APA7 format and no AI content- use the attached outline

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