Depository Institutions

Goodwill Impairment Testing

Mercer Capital’s goodwill impairment testing and intangible asset valuation services reflect a comprehensive understanding of the accounting rules coupled with in-depth valuation, financial reporting, and financial institution industry knowledge

While there are some common elements to all impairment tests, Mercer Capital can assist you with the unique issues related to the financial services industry.

We have been retained by financial institutions across the country to provide independent valuation opinions regarding the fair value of reporting units for purposes of performing Step 1 of the impairment test prescribed by ASC 350.

In the event that potential goodwill impairment is indicated based upon the results of the Step 1 test, Mercer Capital provides valuations of the financial assets, liabilities, and intangible assets that may be required to determine the amount of the impairment under Step 2 of the impairment test. We have appraised many types of intangible assets, including core deposit intangible assets, employment agreements, trademarks, and customer relationships, among others.

With respect to financial assets and liabilities, Mercer has provided valuations of loan and time deposit portfolios, as well as other esoteric assets for which quoted market prices are unavailable. We are experts in the requirements of ASC 350 (formerly SFAS 142) and can help you navigate the ever-changing issues in goodwill and business combination accounting.


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