Testing Goodwill for Impairment

Available in the FVS Online Professional Library*

This guide provides nonauthoritative accounting and valuation guidance for impairment testing of goodwill. Specifically, it focuses on practice issues related to the qualitative assessment and the first step of the two-step test. This guide addresses such issues as identifying reporting units and assigning assets and liabilities to a reporting unit. It also describes the framework for performing the optional qualitative assessment and illustrates one approach of performing it. It also discusses measuring the fair value of a reporting unit in accordance with the guidance in FASB ASC 820, Fair Value Measurement, and illustrates the valuation techniques often utilized for this purpose. This guide also provides an illustration of the second step of the two-step goodwill impairment test.

Access the Testing Goodwill for Impairment practice guide in the FVS Online Professional Library.

Chapter 1 – Concepts and Application of Financial Accounting Standards Board Codification 820
Chapter 2 – Accounting Considerations When Testing Goodwill for Impairment
Chapter 3 – Qualitative Assessment
Chapter 4 – Measuring Fair Value of a Reporting Unit

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