ANSWER POST 6

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Under the acquisition method Intuit recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition.

Intuit reported Goodwill and intangible asset impairment charges of $148million in their 2015 10K. They test the impairment of goodwill annually or more frequently if indicators of impairment arise. Goodwill impairment charge occurs when the company’s record goodwill's carrying value on financial statements exceeds its fair value. (Investopedia, 2016)

There is no goodwill loss recorded, thus, no notes in that effect. When the carrying value of in intangible asset of “quantifiable value” is greater than its fair value there is an impairment loss that has to be recorded. The impairment loss is reported in the consolidated income statement for the period in which it occurs. It is presented on a before-tax basis as part of continuing operations usually under “other gains and losses.” The parent could record the impairment loss on its books and credit the investment in the subsidiary account or the impairment loss could be recorded only on the consolidated worksheet.