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Discussion
Due to a negative news article that alleged the food products of a subsidiary of a client were tainted, sales of the company's products plummeted last year. Accordingly, your firm proposed a journal entry for a goodwill impairment based on the severe decline in sales and profits. The client originally agreed to the write down, but new articles have just come out alleging the original news reports to be false. Sales are slowly picking up again for the subsidiary. Since the audit opinion has not been issued yet, the CFO now wants to reconsider the write down for goodwill impairment since it appears that sales will be back to previous levels within a couple of months, based on current orders in the pipeline. How would you respond to the CFO's request?
1) A good real-world example of monopolistic competition is
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