Pearson uses market value for subsidiary impairment test

摘要

Pearson continues disclosing that it tests for impairment of a subsidiary on the basis of its market price. The UK publisher allocates goodwill across 13 cash-generating units (CGUs) for the purpose of impairment testing and, while it uses value-in-use calculations for measuring the recoverable amount of 12 units, it continues to determine the recoverable amount of the remaining unit based on the market price of each share.