Case Study Scenario You are the Corporate Controller for your company and during the quarter your team completed the annual Goodwill Impairment test. The analysis determined that an impairment charge of $100 million dollars was necessary given a lower estimated fair market value of an acquired business that fell from $500 million estimated at the time of the acquisition to $400 million today. The lower fair market value was the result of a lower 5-year revenue forecast reflecting a more conservative view of product pricing than assumed in the acquisition business case. Pricing has been negatively affected by new, lowcost competitors that entered your market. Per GAAP rules, the impairment charge was reflected as a $100 million expense on the quarterly income statement. This expense was not forecasted and caused earnings per share (EPS) in the quarter to be reduced by $0.35, or half of the analysts' consensus EPS estimate for the quarter. The unplanned expense also obliterated the employee’s quarter bonus.

You are asked to communicate this significant accounting item and its impact to multiple stakeholder groups: 1. The investors in your company. 2. Hourly factory workers and plant managers at the company who will not be receiving an expected bonus as a result of the impairment charge. 3. The audit committee of your company's board of directors