The loss in goodwill that may result from a host of internal and external sources. In accounting, this is recorded as an earnings charge (impairment loss charge) on a statement of income following an impairment test whereby the asset/ assets/ units (CGU) associated with the goodwill cannot continue its financial performance as expected at the time of acquisition.

Goodwill impairment charges are recorded if an entity or a reporting unit’s carrying amount exceeds its fair value. For a unit, the impairment charge is, under usual circumstances, determined by such a difference and will be limited to the respective amount of goodwill allocated to that unit.