RE:RE:Teledoc crashJust saying.... From WELL's annual financials. Looks familiar. Look at Tdoc again. These numbers always comes back to haunt you. You can only play with numbers for so long. Ofcouse what do I know. I only got eveything 100% right. Now let me see the cheerleaders say they are excited about tomorrow and paint a new narrative.
The Company had goodwill of $611.7 million as at December 31, 2021. The Company assesses whether there has been an impairment in the carrying amount of goodwill at least annually or whenever an indicator of impairment exists. An impairment loss is recognized if the carrying amount of a cash generating unit (CGU) to which the goodwill relates exceeds its recoverable amount. The recoverable amounts of the CGUs were determined based on the value in use method using discounted cash flow models. Value in use calculations require management to make certain assumptions, including significant estimates about revenue growth rates, terminal growth rates and discount rates. No impairment was recognized as a result of the 2021 impairment review.
We considered this a key audit matter due to (i) the significance of the goodwill balance and (ii) the judgment made by management in determining the recoverable amounts of the CGUs, including the use of certain assumptions. This has resulted in a high degree of subjectivity and audit effort in performing audit procedures to test these assumptions. Professionals with specialized skill and knowledge in the field of valuation assisted us in performing
our procedures.