12. GOODWILL
The Company’s goodwill represents the excess of the purchase price paid during fiscal 2012 for the acquisition of Bullion Monarch Mining Inc. over the fair value of the net identifiable tangible and intangible assets and liabilities acquired.
Changes in goodwill for the year ended December 31, 2017, 2016, and 2015:
|
Balance, December 31, 2014 |
$ | 8,217,542 | |
|
Adjusted for: |
|||
|
Impairment charge |
(3,047,605 | ) | |
|
Cumulative translation adjustment |
1,331,949 | ||
|
Balance, December 31, 2015 |
6,501,886 | ||
|
Adjusted for: |
|||
|
Impairment charge |
(1,518,328 | ) | |
|
Cumulative translation adjustment |
(230,234 | ) | |
|
Balance, December 31, 2016 |
4,753,324 | ||
|
Adjusted for: |
|||
|
Impairment charge |
(2,709,239 | ) | |
|
Cumulative translation adjustment |
(223,778 | ) | |
|
Balance, December 31, 2017 |
$ | 1,820,307 |
The Company applies a one-step approach to determine if the Carlin Trend Royalty Claim Block and the related assets within the same Cash Generating Unit (“CGU”) are impaired (Note 10). The impairment loss is the amount by which the CGU’s carrying amount exceeds its recoverable amount. There was no impairment for the royalty interest and goodwill has been written down in conjunction with the decline of $2,709,239 (2016 - $1,518,328, 2015 - $3,047,605) of the related deferred income tax liability.