What Is Goodwill Impairment Charge?

Whenever the fair market value of the company is less than the value of goodwill that is recorded in the statements of the company, the company records a charge to bring the value to the fair market value, This charge is known as goodwill impairment charge.
The impairment of goodwill arises when the benefits that the company was getting from goodwill deteriorates or reduces and hence, the goodwill is not able to generate the same amount of benefits for the company.
This leads to an impairment charge that is to be recorded in the financial statements of the company.