5b20a255__2010___The_Board_of_Directors__Potential_impact
[Issue] Goodwill and other intangible assets recorded on the Group’s balance sheet with respect to acquired companies may become impaired. [How it is managed] Regular impairment testing which is a recurring agenda item for the Audit Committee. [Potential impact] 
The Group has a significant amount of goodwill and other intangible assets recorded on its balance sheet with respect to acquired companies. The Group annually tests the carrying value of goodwill and other intangibles for impairment. The estimates and assumptions about results of operations and cash flows made in connection with impairment testing could differ from future results of operations and cash flows. Future events could cause the Group to conclude that the asset values associated with a given operation have become impaired which could have a material impact on the Group’s financial condition.
WPP Annual Report 2010 - The Board of Directors