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Accounting for goodwill impairment

The objective of this project is to reduce the cost and complexity of the subsequent accounting for goodwill by simplifying the impairment test. This project is phase 2 in the FASB's attempt to simplify accounting for goodwill for public business entities and not-for-profit entities. Phase 1 is the separate FASB project, Subsequent accounting for goodwill for public business entities and not-for-profit entities.

 

Meeting minutes

FASB Board discussions regarding this project are found in the following meeting minutes:

 

Current status

On January 26, 2017, the FASB published ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes step 2 from the goodwill impairment test.

 

Project milestones

Date Developments Comments
November 25, 2013 Added to the FASB's agenda.
May 12, 2016 Proposed ASU, Simplifying the Accounting for Goodwill. Comment deadline July 11, 2016.
January 26, 2017 ASU 2017-04, Simplifying the Test for Goodwill Impairment. Effective December 15, 2019, for public entities that are SEC filers.

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.