Goodwill and Impairment

Increased market volatility and changing consumer habits may negatively affect an entity's financial condition and results, and can cause asset impairments.  

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In this publication, we focus on the application of the impairment guidance for goodwill, with a focus on private companies, addressing the following topics:

  • Order of Impairment Tests

  • Long-Lived Assets with Finite Lives

  • Goodwill

    • Unit of Account

    • Private Company Accounting Electives — Subsequent Measurement of Goodwill

    • Triggering Events

    • Evaluating Triggering Events — Private Company Alternative

    • Goodwill Impairment Assessment

    • Step 1 Quantitative Test (Fair Value)

    • Step 2 Quantitative Test (Implied Fair Value)