Why this is mistaken
Begin with asset class, life, and unit of account. Draw separate lanes for finite-lived asset groups, indefinite-lived assets, and goodwill before entering any valuation input.
Where to watch
When this mistake may appear
- A close includes finite-lived assets, an indefinite-lived trade name, and goodwill.
Check your work
Your work may contain this mistake if:
- Every asset is compared with undiscounted cash flows or every loss is measured at the reporting-unit level.