United States

FASB Simplifies Goodwill Impairment Test

Jan 27, 2017
From the Financial Reporting View

This edition of Defining Issues reports that the FASB recently issued an Accounting Standards Update (ASU) to simplify the measurement of goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit.

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