Publications
Publications
- October 2008
- HBS Case Collection
The Talbots, Inc., and Subsidiaries: Accounting for Goodwill
By: William J. Bruns Jr.
Abstract
In 2006, Talbots, Inc., a specialty women's retailer, purchased a competitor, J. Jill. The transaction created a large goodwill account along with accounts for trademarks and other intangible assets. Using prevailing accounting standards (Statement of Financial Accounting Standards No. 142), Talbots determined that the goodwill was not impaired in its Fiscal Year 2007 and it was carried forward at its purchase cost. However, one year later Talbots found the goodwill impaired, along with the trademarks and some store assets acquired from J. Jill in 2006, and these impairments were deducted from revenues in Fiscal Year 2008. Case includes financial statements.
Keywords
FASB; Intangible Assets; Standards; Financial Statements; Goodwill Accounting; Apparel and Accessories Industry; Retail Industry
Citation
Bruns, William J., Jr. "The Talbots, Inc., and Subsidiaries: Accounting for Goodwill." Harvard Business School Brief Case 083-254, October 2008.