This article was originally published in 2019 in Issues in Accounting Education 34 (3): 59–69.
The authors regret the existence of a few numbers in the case that are inconsistent with the solution provided in the Teaching Notes “Is a Reported Goodwill Impairment Loss Really a Goodwill Impairment Loss? A Financial Reporting Case on Evaluating the Efficacy of Authoritative Guidance,” published in Issues in Accounting Education, Volume 34, Number 3, August 2019.
On page 60, the last sentence of the second paragraph under the Goodwill heading incorrectly listed the fair value of Hope to be $10,000,000. The correct value, which corresponds to the Teaching Notes, is $14,070,000. The sentence should read: Dynamic's reports highlighted December 31, 2019 fair values in the amounts of $11,339,000 and $14,070,000 for ZD and Hope, respectively.
In Appendix B, Panel B: Hope Industries, Asset Groupings 4, 5, and 7 originally had Fair Market Value...