Goodwill and Beyond

With goodwill representing a significant share of intangibles, especially in North America and Europe, impairment testing is no longer a routine accounting exercise but a vital indicator of strategic decision-making, risk management, and long-term sustainability. Heightened regulatory scrutiny and market volatility underscore the need for robust valuation frameworks and transparent disclosures. This publication offers deep insights into regional and sectoral trends, the impact of impairments on financial health, and how companies can proactively manage intangible asset risks to protect value and maintain investor confidence. Discover how Deloitte’s expertise can guide your organisation through the complexities of intangible asset valuation and impairment, ensuring compliance and strategic clarity in an evolving landscape.

Key Insights:

• Goodwill impairments are not just accounting entries—they tell a story of strategic decision-making, risk management, and long-term sustainability
• Regional and sectoral differences in goodwill impairment highlight diverse market dynamics and strategic approaches
• Current market volatility, rapid technology shifts, regulatory uncertainty, and geopolitical tensions are increasing risks that reduce expected future cash flows and raise impairment likelihood
• Regulatory scrutiny on impairment testing is intensifying globally, highlighting the need for companies to adopt robust valuation frameworks and transparent disclosures to manage risks and maintain market trust