Air Canada 2012 Annual Report Download - page 106

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2012 Air Canada Annual Report
106
6. GOODWILL
Goodwill is tested at least annually for impairment. For the purpose of impairment testing, goodwill is tested for impairment
using the fair value less cost to sell 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.
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 charges have arisen as a result of the reviews performed as at December 31, 2012 and 2011. Reasonably
possible changes in key assumptions would not cause the recoverable amount of goodwill to fall below the carrying value.