14. Goodwill

 

The changes in the carrying amount of goodwill by reportable segment are as follows

 

   Ansheng   Baokuan  JLCY   SDYC 
Balance as of December 31, 2021  $ 1,026,337   $
-
  $ 3,191,897   $ 4,724,699 
Goodwill acquired   
-
    7,193,965   
-
    
-
 
Goodwill impairment   
-
    (7,193,965)  (3,191,897)   
-
 
Disposal of subsidiaries   (1,026,337)   
-
   
-
    
-
 
Balance as of December 31, 2022  $
-
   $
-
  $
-
   $4,724,699 
Goodwill acquired   
-
    
-
   
-
    
-
 
Goodwill impairment   
-
    
-
   
-
    
-
 
Balance as of March 31, 2023  $
-
   $
-
  $
-
   $4,724,699 

 

At December 31, 2023, the Company performed its annual impairment tests as prescribed by ASC 350 on the carrying value of its goodwill and no instances of impairment were identified in our December 31, 2023 test.

 

At December 31, 2023 and 2022, the carrying amount of the Company’s goodwill was $4,724,699 and $4,724,699, respectively.

Historical Timeline

Fiscal YearFiled
2023Apr 1, 2024Showing above
2022Mar 31, 2023
2021Mar 31, 2022
2020Mar 31, 2021
2019May 14, 2020
2016Oct 31, 2017
2015Apr 14, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.