This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB issues proposed ASU to simplify goodwill accounting

  • FASB document Image

May 12, 2016

The FASB has issued a proposed ASU, “Simplifying the Accounting for Goodwill.”

Under the proposed amendments, “an entity would perform its annual, or any interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.” The proposed ASU would also remove “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.”

After considering stakeholder feedback, the FASB will determine the effective date and whether early adoption will be permitted for the one-step impairment test.

Comments on the proposal are due by July 11, 2016. For more information, see the proposed ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.