XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Note J - Goodwill and Intangible Assets
3 Months Ended
Jun. 28, 2020
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE J - GOODWILL AND INTANGIBLE ASSETS

 

The Company determined that the impact of COVID-19 was a triggering event that required the Company to perform a quantitative interim goodwill impairment test. The Company’s impairment assessment was performed in accordance with the accounting guidance adopted in the first quarter of fiscal 2021 that simplifies the testing for goodwill impairment, as discussed in Note B – Adoption of New Accounting Standard. Based on the quantitative assessment performed, management determined that the Company’s goodwill has not been impaired as of June 28, 2020 and, as a result, no impairment charge was recorded for the thirteen- week period ended June 28, 2020.

 

The Company also determined that the impact of COVID-19 was a triggering event that prompted the need to perform interim impairment testing of its finite lived intangible asset. The Company elected to assess qualitative factors to determine whether it was more likely than not that the fair value was less than the carrying amount. No impairment was identified as a result of the Company’s annual impairment test performed at March 29, 2020. Considering this and other factors, the Company determined qualitatively that its finite lived intangible asset, which has a remaining useful life based upon its current Arthur Treacher’s co-branding agreements, is recoverable. As a result, no impairment charge was recorded for the thirteen-week period ended June 28, 2020.