A multinational co. based in China expanded its manufacturing business in the U.S. and purchased...
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A multinational co. based in China expanded its manufacturing business in the U.S. and purchased 2 companies. Because of these acquisitions, the company assumed debt of $2.2B & allocated $4.8B. They reported 2 industry segments to the SEC: distribution & supply. The distribution segment was profitable, but the supply segment produced a $2B loss in total. ($450M in current year) This year, the company declared a $3.7B write down in goodwill associated with the acquisition. The results of the 2 segments were combined and reported as manufacturing. Little profit was shown. The consolidated financial statements did not disclose the losses for the supply company.
How should the write down of goodwill be reported?
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