2013 Canadian Goodwill Impairment Study
Duff & Phelps and the Canadian Financial Executives Research Foundation (CFERF) have released the 2013 Canadian Goodwill Impairment Study ("Study"). In its second year of publication, the 2013 Canadian Goodwill Impairment Study continues to examine general goodwill impairment trends, highlight new regulatory developments and report the results of its annual survey of Financial Executives International – Canada (FEI Canada) members, representing both privately-owned and publicly-traded companies.
Key highlights from the study include:
- Canadian publicly-traded companies reporting under IFRS recorded $7.9 billion of goodwill impairment in 2012, a notable decrease of 33% from the $11.0 billion reported in 2011.
- The overall frequency of impairment events increased to 52 events in 2012, compared to 36 events in 2011. This indicates that the average amount of individual impairments has decreased year over year
- Of the $7.9 billion total goodwill impairment in the 2013 Study, approximately $6 billion (or 76% of the total) was captured by the top three impairment events. This concentration is consistent with findings from the 2012 Study, when three impairment events accounted for 81% of the total
- Approximately 82% of the total goodwill impairment recorded in 2012 was concentrated in two industries: Consumer Discretionary and Materials.
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