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Essay text:
According to AA-20 of 2005’s Annual report, Wendy’s test for impairment when an event occurs that is large indication impairment might exist. For Baja Fresh, the decreases in future projected sales was the indicator impairment might exist.
The discovery of impairment had a direct relationship with the performance bonuses of top executives. Under Wendy’s Senior Executive Plan, top executives are rewarded based on meeting a certain level of earnings per share & return on assets for the year. Due to Baja Fresh’s goodwill impairment, restraint closings, and other market impairments, Wendy’s fell below the required ratio amounts and top executives received no bonus for 2004...
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Common topics in this essay:
- Wendy's Chili Finger Case Study
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