2013 European Goodwill Impairment Study
The 2013 European Goodwill Impairment Study, prepared in partnership with Mergermarket, examines goodwill impairment trends across countries and industries within the European market. This inaugural report also includes a survey of 150 European financial executives across a variety of industries, focusing on the challenges faced when performing goodwill impairment tests in accordance with IAS 36, and an interview with Professor Erik Peek, Duff & Phelps Chair in Business Analysis and Valuation.
Key highlights from the report include:
- The total amount of goodwill impaired by companies in the STOXX® Europe 600 Index in calendar year 2012 was €65 billion, a decrease of approximately 15% compared to 2011.
- Approximately 41% of European companies responding to the survey recognised a goodwill impairment in 2012.
- In terms of geography, the United Kingdom recorded the largest goodwill impairments overall in 2012, recognising aggregate impairments of £18.5 billion (€22.8 billion).
- Overall market conditions and general industry downturns were given as the most common reasons for the goodwill impairments, with 62% of companies surveyed impairing between 20% and 50% of their goodwill balance in 2012.
- Telecommunication Services companies recorded the largest goodwill impairments overall in 2012, with aggregate impairments of €23.4 billion.