In December 2008, ArcelorMittal Dofasco (Dofasco) accounting team faced a serious problem. In the past few years, Dofasco has undergone significant changes of ownership, and when the company was first acquired in the market have been placed on the value of the share premium subsidiary Dofasco. In light of the recent economic downturn, accounting team had to re-evaluate the values assigned to the net assets of the subsidiary. Dismal projected earnings from operations indicated a potential impairment of assets transactions in accordance with International Financial Reporting Standards (IFRS). The team began with an analysis of the initial fair value measurement, the subsequent purchase price and the distribution of various tangible and intangible assets and liabilities. It was discovered by an appraiser estimates the fair values of various intangible assets relied on the income approach, using projected figure EBITDA, derived from each of the intangible, to determine its value. The team wondered how the revised estimates of EBITDA to change the recoverability of intangible assets Dofasco and thus detect the consequences of the current economic situation in the value of intangible assets recognized on acquisition of Dofasco's website. "Hide
by Mary Jane Mastrandrea Source: Richard Ivey School of Business Foundation 21 pages. Publication Date: January 11, 2010. Prod. #: 909B17-PDF-ENG
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