Goodwill:
Apple, Inc. tests their goodwill and intangible assets for impairment at minimum, annually. They may even sooner depending on when the events of changes in circumstances show that these assets may be impaired. Therefore, Apple does not amortize their goodwill and intangible assets with indefinite useful lives. Intangible assets with definite useful lives are amortized over a period of their useful lives, and after are reviewed for impairment. Currently, Apple’s acquired intangible assets with definite lives are being amortized, over periods of three to ten years. The Company established their methods of reporting used based on their reporting structure that they have in place currently. When testing goodwill and impairment, Apple allocates these reporting units to the extent in which it relates to each of the reporting units. Samsung discloses their goodwill by representing the excess of the cost of an acquisition over the fair value of the group’s share of net identifiable assets of the acquired subsidiary at the date of acquisition. However, if the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, then the difference is recognized directly to the income statement. Goodwill on acquisitions of subsidiaries is reported under intangible assets. Samsung deals with their goodwill by testing it annually for impairment and carried at cost less accumulated impairment losses. If there is any change in events that indicates a possible impairment they will test goodwill sooner rather than just once a year. However impairment losses on goodwill are not reversed. The Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Both Apple and Samsung test their goodwill for impairment annually as well as if there is any change in events that indicates a possible