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[Diagram from Grant Thornton]
Once Step One has been completed, companies should make various comparisons to ensure the reasonableness of their goodwill value. One technique is to value all reporting units to arrive at a value for the company as a whole. This helps to demonstrate that value has not been shifted from one reporting unit to another to skew the result.
Another corroborating analysis is to compare the Company's market capitalization (share price times number of shares outstanding) with the total value of the company as a whole, as calculated in the above paragraph. Generally, market cap and value of the business will differ. Reasons for this difference should be explained. Differences may include control premiums, liquidity factors, and non-public information.
More later on this.