When does Bw Premier Collection test goodwill for impairment?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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
November 30, 2024
testing is required. If the conclusion is that the fair value of the assets is more likely than not less than its carrying value, then a quantitative impairment test is performed. For intangible assets, if the carrying value is greater than the fair value of the assets, an impairment charge is recognized for this excess. The Company may elect to forgo the qualitative assessment and move directly to the quantitative impairment tests for goodwill and other intangible assets. The Company determines the fair value of its reporting units and intangible assets using income and market methods.
Goodwill has been allocated to two reporting units: (i) WorldHotels, and (ii) AutoClerk. The Company performed a quantitative impairment analysis for the WorldHotels reporting unit in both 2024 and 2023. As of November 30, 2024 and November 30, 2023, the Company determined that the fair value of the WorldHotels reporting unit exceeded the carrying value and no impairment was recorded. The Company performed a qualitative impairment analysis for the AutoClerk reporting unit during both 2024 and 2023, concluding that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount (see note 15).
(l) Impairment or Disposal of Long-Lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The Company has not recognized any impairments during the years ended November 30, 2024 and 2023.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company evaluates the potential impairment of goodwill and other intangible assets annually. In assessing these assets, Bw Premier Collection may initially use qualitative factors to determine if the fair value of a reporting unit or intangible assets is likely less than its carrying amount. If the qualitative assessment suggests that the fair value is not likely less than the carrying value, no further testing is needed. However, if the opposite is concluded, a quantitative impairment test is then performed.
For intangible assets, if the carrying value exceeds the fair value, an impairment charge is recognized for the difference. Bw Premier Collection has the option to skip the qualitative assessment and proceed directly to quantitative impairment tests for goodwill and other intangible assets. The fair value of reporting units and intangible assets is determined using income and market methods.
Goodwill has been allocated to two reporting units: WorldHotels and AutoClerk. In 2024 and 2023, Bw Premier Collection performed a quantitative impairment analysis for WorldHotels and determined that the fair value exceeded the carrying value, resulting in no recorded impairment. For AutoClerk, a qualitative impairment analysis was conducted in both 2024 and 2023, concluding that the fair value of the reporting unit was likely greater than its carrying amount. The company also reviews long-lived assets for impairment whenever events or changes in circumstances suggest that the carrying amount of an asset may not be recoverable. No impairments were recognized during the years ended November 30, 2024 and 2023.