2023 Consolidated Financial Statements and Notes
AIR CANADA
2023 Consolidated Financial Statements and Notes
7. GOODWILL
Goodwill is tested at least annually for impairment. Goodwill is tested for impairment using the fair value less cost to
dispose model at the operating segment level. Air Canada is managed as one operating segment based on how
financial information is produced internally for the purposes of making operating decisions, and it is the lowest level at
which goodwill is monitored for internal management purposes.
In assessing the goodwill for impairment, the Corporation compares the aggregate recoverable amount consisting of
the sum of its quoted equity market capitalization and the fair value of its debt to the carrying value of its net assets
excluding long-term debt. An impairment charge is recognized to the extent that the carrying value exceeds the
recoverable amount. No impairment losses have been recorded against the value of goodwill since its acquisition.
No impairment charges have arisen as a result of the reviews performed as at December 31, 2023 and 2022.
Reasonably possible changes in key assumptions would not cause the recoverable amount of goodwill to fall below
the carrying value.
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