Where is goodwill included in Bw Premier Collection's Consolidated Statements of Financial Position?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Goodwill arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value amounts that were assigned to the identifiable assets acquired and the liabilities assumed. Goodwill is amortized on a straight-line basis over a ten-year useful life and is tested for impairment if circumstances indicate that the goodwill carrying value may exceed its fair value. Goodwill is included in other assets, net in the Consolidated Statements of Financial Position.
Other intangible assets include acquired customers, developed technologies, and trademarks and trade names resulting from business acquisitions. Other intangible assets are valued based on their acquisition date fair values and, other than trademarks and trade names which are indefinite-lived, are amortized using the straight-line method over their estimated useful lives, ranging from 7.5 years to 10 years. Other intangible assets are included in other assets, net in the Consolidated Statements of Financial Position.
The Company evaluates the potential impairment of goodwill and other intangible assets annually. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the intangible assets is less than its carrying amount. If the conclusion is that the fair value of the assets is not more likely than not less than its carrying value, then no further
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, goodwill, which arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value amounts assigned to identifiable assets and liabilities, is included in other assets, net in the Consolidated Statements of Financial Position. Goodwill is amortized on a straight-line basis over a ten-year useful life. Bw Premier Collection tests goodwill for impairment if circumstances indicate that the goodwill carrying value may exceed its fair value.
Other intangible assets, such as acquired customers, developed technologies, trademarks, and trade names resulting from business acquisitions, are also included in other assets, net in the Consolidated Statements of Financial Position. These intangible assets, excluding indefinite-lived trademarks and trade names, are amortized using the straight-line method over their estimated useful lives, ranging from 7.5 years to 10 years.
Bw Premier Collection evaluates the potential impairment of goodwill and other intangible assets annually. This evaluation may involve assessing qualitative factors to determine if it is more likely than not that the fair value of the reporting unit or the intangible assets is less than its carrying amount. If the fair value of the assets is not likely less than its carrying value, no further action is taken.