{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/20/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"350","topic_title":"Intangibles—Goodwill and Other","subtopic":"350-20","subtopic_title":"Goodwill","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-20-05-1","para":"05-1","html":"
This Subtopic addresses financial accounting and reporting for goodwill subsequent to its acquisition and for the cost of internally developing goodwill.
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Subtopic 805-30 provides guidance on recognition and initial measurement of goodwill acquired in a business combination. Subtopic 958-805 provides guidance on recognition and initial measurement of goodwill acquired in an acquisition by a not-for-profit entity. Subtopic 805-60 provides guidance on the recognition and initial measurement of goodwill by a joint venture upon formation.
","snippet":"Subtopic 805-30 provides guidance on recognition and initial measurement of goodwill acquired in a business combination. Subtopic 958-805 provides guidance on recognition and initial measurement of goodwill acquired in a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e8422f5cc6219c77fa5ee818608dfb290447456df4dca0f0649889faa33ace7","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-3","para":"05-3","html":"
Paragraph superseded by Accounting Standards Update No. 2017-04.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2017-04.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27d79f01dffb9a5e88b55a008ca9f34a8b9996d4012006a86890998c9637db6e","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-4","para":"05-4","html":"
The guidance in this Subtopic is presented in the following two Subsections:
  1. a
    General
  2. b
    Accounting Alternatives.
","snippet":"The guidance in this Subtopic is presented in the following two Subsections:\n(a) General\n(b) Accounting Alternatives.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20a76b6b1bc0e69b313fe87bd584e421b99e0182721fd413a8d79bae1f230d46","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-4A","para":"05-4A","html":"
Costs of developing, maintaining, or restoring internally generated goodwill should not be capitalized. For entities that do not elect the accounting alternative for amortizing goodwill included in the guidance in the Subsections outlined in paragraph 350-20-05-5A, goodwill that is recognized under the business combination guidance in Topic 805 and Subtopic 958-805 and goodwill that is recognized under the joint venture formation guidance in Subtopic 805-60should not be amortized. Instead, it should be tested for impairment at least annually in accordance with paragraphs
350-20-35-28 through 35-32
.If the accounting alternative for a goodwill impairment triggering event evaluation is elected, a goodwill impairment triggering event shall be evaluated in accordance with paragraphs
350-20-35-83 through 35-86
.
","snippet":"Costs of developing, maintaining, or restoring internally generated goodwill should not be capitalized. For entities that do not elect the accounting alternative for amortizing goodwill included in the guidance in the Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cae301dd9b02d412a1ddd148949c8becb05c911ad1fe7aedd734e462bd756b41","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-4B","para":"05-4B","html":"
This Subtopic also includes guidance on the following:
  1. a
    How an entity should derecognize goodwill when it disposes of all or a portion of a reporting unit
  2. b
    How goodwill should be presented in the balance sheet
  3. c
    How impairment losses should be presented in the income statement
  4. d
    What disclosures about goodwill and related impairment considerations should be made in the notes to the financial statements.
","snippet":"This Subtopic also includes guidance on the following:\n(a) How an entity should derecognize goodwill when it disposes of all or a portion of a reporting unit\n(b) How goodwill should be presented in the balance sheet\n(c) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:882d5742cb413f23ba014638c32db6d68ff8c9e3a3a77cad4e2af2354e09003f","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb64700ce8e5c129875d38ae7ce1e2d1cf9967ba0a8d1b9164b8571d7733b809","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"block":"Accounting Alternatives","heading":null,"paragraphs":[{"citation":"350-20-05-5","para":"05-5","html":"
The Accounting Alternatives Subsections of this Subtopic provide guidance for the following:
  1. a
    An entity within the scope of paragraph 350-20-15-4 that elects the accounting alternative for amortizing goodwill. If elected, this accounting alternative allows an eligible entity to amortize goodwill and test that goodwill for impairment upon a triggering event.
  2. b
    An entity within the scope of paragraph 350-20-15-4A that elects the accounting alternative for a goodwill impairment triggering event evaluation. If elected, this accounting alternative allows an eligible entity to evaluate goodwill impairment triggering events only as of the end of each reporting period.
","snippet":"The Accounting Alternatives Subsections of this Subtopic provide guidance for the following:\n(a) An entity within the scope of paragraph 350-20-15-4 that elects the accounting alternative for amortizing goodwill. If elec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2136ee122c5f8c15a95440647e41f371b5b9154152f44b22d3e19d16f0713227","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-5A","para":"05-5A","html":"
The accounting alternatives guidance can be found in the following paragraphs:
  1. a
    Scope and Scope Exceptions—paragraphs
    350-20-15-4 through 15-6
  2. b
    Subsequent Measurement—paragraphs
    350-20-35-62 through 35-86
  3. c
    Derecognition—paragraphs
    350-20-40-8 through 40-9
  4. d
    Other Presentation Matters—paragraphs
    350-20-45-4 through 45-7
  5. e
    Disclosure—paragraphs
    350-20-50-3A through 50-7
  6. f
    Implementation Guidance and Illustrations—paragraphs
    350-20-55-26 through 55-29
    .
","snippet":"The accounting alternatives guidance can be found in the following paragraphs:\n(a) Scope and Scope Exceptions—paragraphs 350-20-15-4 through 15-6\n(b) Subsequent Measurement—paragraphs 350-20-35-62 through 35-86\n(c) Derec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:919303b05d7c2a216d783b2d98fd4c119c45fc323270488ccd3dd66483838bab","downloaded_from":"2026-09-10T00:00:43.503Z","last_downloaded_at":"2026-09-10T00:00:43.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482539","source_sha256":"d1391a2d8b63aab832c1d0ba2bd2ef10e18262091f723f4f72e8ec756ff76142"}},{"citation":"350-20-05-6","para":"05-6","html":"
An entity should continue to follow the applicable requirements in Topic 350 for other accounting and reporting matters related to goodwill that are not addressed in the Accounting Alternatives Subsections of this Subtopic.
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