Air Canada 2011 Annual Report Download - page 98

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2011 Air Canada Annual Report
98
7. GOODWILL
Goodwill is tested at least annually for impairment. For the purpose of impairment testing, goodwill is tested for impairment
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 operating decisions.
In assessing the goodwill for impairment, the Corporation compares the aggregate recoverable amount, based on the fair
value less cost to sell, of the entity as a whole to its carrying value. If the carrying value exceeds the recoverable amount, an
impairment charge is recognized to the extent that the carrying value exceeds the recoverable amount.
No impairment charge has arisen as a result of the review performed as at December 31, 2011 and 2010 and January 1, 2010.
Reasonably possible changes in key assumptions would not cause the recoverable amount of goodwill to fall below the
carrying value.