Goodwill Impairment Analysis Simplified with Removal of Step 2 Requirement

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The Financial Accounting Standards Board (FASB) has amended the Accounting Standards Codification (ASC) Topic 350 related to the subsequent measurement of goodwill via Accounting Standards Update (ASU) 2017-04. Under the ASU, companies will no longer perform Step 2 of the goodwill impairment analysis. Instead, the entity or reporting unit will compare the fair value of the entity or reporting unit to its carrying amount just like in Step 1. The impairment charge, if any, is simply the lesser of (i) the difference between the fair value of the reporting unit and the carrying amount, or (ii) the remaining carrying …read more

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Carrie Sherreard has written 65 post in this blog.

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