# ASC 350-20-35: Intangibles—Goodwill and Other — Goodwill — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/20/#35-subsequent-measurement) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7dc68c5a1fe42f691b878948cc27f94e4c74a6f94837deb0ad01463080f6fdf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/20/#35-subsequent-measurement) SEC content: no #### Overall Accounting for Goodwill ##### [350-20-35-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d67fb412952a31da9a85d02304aefc75a32079d846b1f5d92579cc90bf52c363 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") shall not be amortized. Instead, goodwill shall be tested at least annually for impairment at a level of reporting referred to as a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component)."). (Paragraphs [350-20-35-33 through 35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) provide guidance on determining reporting units.) ##### [350-20-35-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a2a2fae1d6d73f0c180cad08f093d0a9eadebad31affbb0343db9fbbc2af0d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. However, an entity shall consider the related income tax effect from any tax deductible goodwill, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. ##### [350-20-35-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:af07d69ea271bf2e61b646fa39eb388af410be093f509c3f8ce8739ce7d5033c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may first assess qualitative factors, as described in paragraphs [350-20-35-3A through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) , to determine whether it is necessary to perform the quantitative goodwill impairment test discussed in paragraphs [350-20-35-4 through 35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) . If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). #### Recognition and Measurement of an Impairment Loss ##### [350-20-35-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:618cecd5dab9b61485117628a8ddd8e9aaa09b696712069bb243866f0b5514fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. ##### [350-20-35-3B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f6f6c9059735663f5b86768e3dec9c77a4c9b51337026b2c821807907f10c0fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity has an unconditional option to bypass the qualitative assessment described in the preceding paragraph for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. ##### [350-20-35-3C](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e0ef6836a37c3e6bec934535374b518a9b0f5fae9059f36f6e2a321947cc6e26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an entity shall assess relevant events and circumstances. Examples of such events and circumstances include the following: 1. a Macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets 2. b Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (consider in both absolute terms and relative to peers), a change in the market for an entity's products or services, or a regulatory or political development 3. c Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows 4. d Overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods 5. e Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation 6. f Events affecting a reporting unit such as a change in the composition or carrying amount of its net assets, a more-likely-than-not expectation of selling or disposing of all, or a portion, of a reporting unit, the testing for recoverability of a significant asset group within a reporting unit, or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit 7. g If applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers). ##### [350-20-35-3D](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3D) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a80321b19fce3a330079c728196b1b4983e3344d0dddae38ed07c8b04c9679af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. ##### [350-20-35-3E](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3E) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:75fa296cd79507f4acb95b40bc80bd7b0e1f1c748c7956b0dffadc2fadc8ca5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity shall perform the quantitative goodwill impairment test. ##### [350-20-35-3F](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a3b047faeb4374d576deaa96d68e3df1eec5d79acdea60e505a068cfc69805bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of a reporting unit in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit's fair value with its carrying amount. An entity should place more weight on the events and circumstances that most affect a reporting unit's fair value or the carrying amount of its net assets. An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity has a recent fair value calculation for a reporting unit, it also should include as a factor in its consideration the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test. ##### [350-20-35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3G) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a671a85fdde5b942a2ce8f9b47bb23c7f7b9944800eefb1b3b0239c644a5d14a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test. ##### [350-20-35-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:495810ea7c332a7eb61bccf716982914e3d70b89b242d7670360784f0ef65466 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. ##### [350-20-35-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ba08554d3683b6a0e545b33b301f9333f02df00e20f5fb56caf92e52102be0f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) shall be considered in determining the fair value of a reporting unit. ##### [350-20-35-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4346a4d1ed8a13f69b3e384e5185e3c16edff527813f28aae7f28534b675e24e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. ##### [350-20-35-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:84e7f19c91bef062e0f172fab18a4df3eefb4a66fd6f8f9b8bc12a991585891d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining the carrying amount of a reporting unit, deferred income taxes shall be included in the carrying amount of the reporting unit, regardless of whether the fair value of the reporting unit will be determined assuming it would be bought or sold in a taxable or nontaxable transaction. ##### [350-20-35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:8ec791b3e906ebe8f46bba3e3306cf97d6387e1fe8e5caf805a4d0e2ca9bffa6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. ##### [350-20-35-8A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f6e43afe36486975d5173eaafbd86f2cbd0a12235b32067fb0fb65a18ad5aba8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c54ec27925a1de4c75d3ee9344bbbf839704726f533b73163e6abd4f99731b94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting unit has tax deductible goodwill, recognizing a goodwill impairment loss may cause a change in deferred taxes that results in the carrying amount of the reporting unit immediately exceeding its fair value upon recognition of the loss. In those circumstances, the entity shall calculate the impairment loss and associated deferred tax effect in a manner similar to that used in a business combination in accordance with the guidance in paragraphs [805-740-55-9 through 55-13](https://asc.understandingaccounting.org/asc/740/805/#740-805-55-9) . The total loss recognized shall not exceed the total amount of goodwill allocated to the reporting unit. See Example 2A in paragraphs [350-20-55-23A through 55-23C](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) for an illustration of the calculation. ##### [350-20-35-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:fd6ee29b4f14ec57926a135fa82f0cc07625e0517b2a3e9dd7e614425ead4106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-10](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:df5748cc95c6d56bdb5cd0e8ebf698f64cc7c5a328a872dbd7cdc7cbee55cd6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-11](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:fbbe61442f5e50a7fc8d29cc4242daeb7ea7581cde721b605a92adbee948e61d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-12](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ecb295ac9c14a34ca8559ba365195da85f414c93a4dd987484eb676aa7a443c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis. ##### [350-20-35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b6808a4d79a84789ead9943071f2ddb388ab7f479b16050bf4659fffc2d38c44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited once the measurement of that loss is recognized. ##### [350-20-35-14](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:04402106d768b0dd8c4a29645e8f3f2058568c8ff5496bc046d07cee2abb3d5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-15](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4061f3db5926371698fe05118dde6c13f9713b9243fc7a71ea2799abc29e22b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-16](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d3d08d6da50780045b630d2e7fb204c8ebe65c5efbf025762d0ba2d88b424fe3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-17](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a62e838264bf6b85cd26e12a97a2d600f5eec356b14caed0a6925d4fdaa35b8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-18](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a61a478a76cce1bcd199c70706813edcc3607d24ca72fb21b31d264a15804124 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-19](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e82bb377351b2574060d476f7d73b6b56b7a2b6496427c26cc9b2bf9caf15c80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-20](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6c45693259143d6d1852d53a0295f39e58b1adcd33ad6ec51fc4bf581c64d780 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-21](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d1787fce41f85ee50ed899eabc06ee3f1479e7433cfae61874f42f4bd8d2c2ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). #### Determining the Fair Value of a Reporting Unit ##### [350-20-35-22](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:32fb0cc6747e8f8b00c163940fb29efdecc087b2b847d1fd2e6cfa313dfe9188 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. However, the market price of an individual equity security (and thus the market capitalization of a reporting unit with publicly traded equity securities) may not be representative of the fair value of the reporting unit as a whole. ##### [350-20-35-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:300b121e52208ed9d2badb8cce11af689f8a199904c14632063645d36ae3afa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Substantial value may arise from the ability to take advantage of synergies and other benefits that flow from control over another entity. Consequently, measuring the fair value of a collection of assets and liabilities that operate together in a controlled entity is different from measuring the fair value of that entity's individual equity securities. An acquiring entity often is willing to pay more for equity securities that give it a controlling interest than an investor would pay for a number of equity securities representing less than a controlling interest. That control premium may cause the fair value of a reporting unit to exceed its market capitalization. The quoted market price of an individual equity security, therefore, need not be the sole measurement basis of the fair value of a reporting unit. ##### [350-20-35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:01915ee8e019f08a828022b7b1f5f76888bb860e978e0ff5fd369b58fb6b0a8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In estimating the fair value of a reporting unit, a valuation technique based on multiples of earnings or revenue or a similar performance measure may be used if that technique is consistent with the objective of measuring fair value. Use of multiples of earnings or revenue in determining the fair value of a reporting unit may be appropriate, for example, when the fair value of an entity that has comparable operations and economic characteristics is observable and the relevant multiples of the comparable entity are known. Conversely, use of multiples would not be appropriate in situations in which the operations or activities of an entity for which the multiples are known are not of a comparable nature, scope, or size as the reporting unit for which fair value is being estimated. ##### [350-20-35-25](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6e53b024a30fa39f11c5e6ff049b9e97825ad52111fda9f86087f14d3df496c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Before estimating the fair value of a reporting unit, an entity shall determine whether that estimation should be based on an assumption that the reporting unit could be bought or sold in a nontaxable transaction or a taxable transaction. Making that determination is a matter of judgment that depends on the relevant facts and circumstances and must be evaluated carefully on a case-by-case basis (see Example 1 \[paragraphs [350-20-55-10 through 55-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10) \]). ##### [350-20-35-26](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c0e03f8011c2db8dab1720b33bd0ac4168ae31db54bce74d1f299ae4ce6dc6dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In making that determination, an entity shall consider all of the following: 1. a Whether the assumption is consistent with those that marketplace participants would incorporate into their estimates of fair value 2. b The feasibility of the assumed structure 3. c Whether the assumed structure results in the highest and best use and would provide maximum value to the seller for the reporting unit, including consideration of related tax implications. ##### [350-20-35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:5277fc44c17beb2f9224d6889e0fee815e5d8cc119e4ddd76521bd020e390e6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining the feasibility of a nontaxable transaction, an entity shall consider, among other factors, both of the following: 1. a Whether the reporting unit could be sold in a nontaxable transaction 2. b Whether there are any income tax laws and regulations or other corporate governance requirements that could limit an entity's ability to treat a sale of the unit as a nontaxable transaction. #### When to Test Goodwill for Impairment ##### [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:14c4638223bef91bb164ac477f30ef38424f1efd39c52985f0d1f44e7a9d72c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of a reporting unit shall be tested for impairment on an annual basis and between annual tests in certain circumstances (see paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)). The annual goodwill impairment test may be performed any time during the fiscal year provided the test is performed at the same time every year. Different reporting units may be tested for impairment at different times. ##### [350-20-35-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9ce668d078e4a6fe96079cd24a0792c3590dcf4e5ae74efcb08647d2bbbcac0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). ##### [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:640783555f53af230e1b43e3528dd06c7464d46e0ba56140ea7a24d4bdff1a73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of a reporting unit shall be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)includes examples of such events and circumstances. Paragraphs [350-20-35-3F through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F) describe the process for making these evaluations. 1. a [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 5. e [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 6. f [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 7. g [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). ##### [350-20-35-31](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:371f2bd3661aefa1883392d3107aaef0fe4d12f6edf1a172af5bd6bc567165aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill and another asset (or asset group) of a reporting unit are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group was impaired, the impairment loss would be recognized prior to goodwill being tested for impairment. ##### [350-20-35-32](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a13c539a5196cc0dfb3ec16805d5b964a97cb866b53f9a2495d82b20f15b62a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This requirement applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Reporting Unit ##### [350-20-35-33](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c4c66bfa8b0bf851cc18c3092d82cafbada6a8c5b3d8b32bf4a4e68b26ef1adf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provisions of Topic 280 shall be used to determine the [reporting units](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") of an entity. ##### [350-20-35-34](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:95bd365880d3078b954cc720713d37337d07b9959028b41fcce05b50403503cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A component of an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a reporting unit if the component constitutes a business or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") for which discrete financial information is available and segment management, as that term is defined in paragraph [280-10-50-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7), regularly reviews the operating results of that component. Subtopic 805-10 includes guidance on determining whether an asset group constitutes a business. Throughout the remainder of this Section, the term _business_ also includes a _nonprofit activity_. ##### [350-20-35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:89a7b0f8b2e578669742ee47dcaea50f5c79f39e05e06d507d8730d3cd4903c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, two or more components of an operating segment shall be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) shall be considered in determining if the components of an operating segment have similar economic characteristics. ##### [350-20-35-36](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7a67701996cefa45545c02fc53484fc471b5c5d444e546bc66334fe17432df6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An operating segment shall be deemed to be a reporting unit if all of its components are similar, if none of its components is a reporting unit, or if it comprises only a single component. ##### [350-20-35-37](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:47ab8cd31da5919e8ecabc13c514d03b99078e8251092b59cfa106b70a6351ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reporting units will vary depending on the level at which performance of the segment is reviewed, how many businesses the operating segment includes, and the similarity of those businesses. In other words, a reporting unit could be the same as an operating segment, which could be the same as a reportable segment, which could be the same as the entity as a whole (entity level). ##### [350-20-35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:93d9b04ce265086a1314c0452e088dd4eeab4e55e4e73da9ce098d59eb92caf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that is not required to report segment information in accordance with Topic 280 is nonetheless required to test goodwill for impairment at the reporting unit level. That entity shall use the guidance in paragraphs [280-10-50-1 through 50-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) to determine its operating segments for purposes of determining its reporting units. #### Assigning Acquired Assets and Assumed Liabilities to a Reporting Unit ##### [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1cf76eef7f21cccebda2f5b44713fa4a7a3141a58d23186f2c49cc5506c8ad1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purpose of testing goodwill for impairment, acquired assets and assumed liabilities shall be assigned to a reporting unit as of the acquisition date if both of the following criteria are met: 1. a The asset will be employed in or the liability relates to the operations of a reporting unit. 2. b The asset or liability will be considered in determining the fair value of the reporting unit. Assets or liabilities that an entity considers part of its corporate assets or liabilities shall also be assigned to a reporting unit if both of the preceding criteria are met. Examples of corporate items that may meet those criteria and therefore would be assigned to a reporting unit are environmental liabilities that relate to an existing operating facility of the reporting unit and a pension obligation that would be included in the determination of the fair value of the reporting unit. This provision applies to assets acquired and liabilities assumed in a business combination and to those acquired or assumed individually or with a group of other assets. ##### [350-20-35-39A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:bfa10124647cb352cf49088d8ae4c7bf6a07937c1d288ada38ed9471e490dc21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Foreign currency translation adjustments should not be allocated to a reporting unit from an entity's accumulated other comprehensive income. The reporting unit's carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ##### [350-20-35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9efed1920275397f15da134f8ff1ebc9ac0a9876546f259917aec0d3b5d8300c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some assets or liabilities may be employed in or relate to the operations of multiple reporting units. The methodology used to determine the amount of those assets or liabilities to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. For example, assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, could be assigned according to the benefit received by the different reporting units (or based on the relative fair values of the different reporting units). In the case of pension items, for example, a pro rata assignment based on payroll expense might be used. A reasonable allocation method may be very general. For use in making those assignments, the basis for and method of determining the fair value of the acquiree and other related factors (such as the underlying reasons for the acquisition and management's expectations related to dilution, synergies, and other financial measurements) shall be documented at the acquisition date. #### Assigning Goodwill to Reporting Units ##### [350-20-35-41](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:612d8d0e07325c7da4c8b4c4eed8ddf5d5721442fa72b39ebb50e7d955c553db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination or recognized by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation shall be assigned to one or more reporting units as of the acquisition date or the joint venture [formation date](https://asc.understandingaccounting.org/glossary/f/#formation-date "The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction."). Goodwill shall be assigned to reporting units of the acquiring entity that are expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. The total amount of acquired goodwill may be divided among a number of reporting units. The methodology used to determine the amount of goodwill to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. In addition, that methodology shall be consistent with the objectives of the process of assigning goodwill to reporting units described in paragraphs [350-20-35-42 through 35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42) . ##### [350-20-35-42](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1eabb06a50907415c977f8efa5df91f0372695c0e86e87a16e0948d4400f5aff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In concept, the amount of goodwill assigned to a reporting unit would be determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. That is: 1. a An entity would determine the fair value of the acquired business (or portion thereof) to be included in a reporting unit—the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit. Subtopic 805-20 provides guidance on assigning the fair value of the acquiree to the assets acquired and liabilities assumed in a business combination. 2. b Any excess of the fair value of the acquired business (or portion thereof) over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit is the amount of goodwill assigned to that reporting unit. 3. c [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-20-35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-43) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:0fcff861dc8e3b9c56c5ea8288af1b86618ca4a3d77fd23186ccebb573505165 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill is to be assigned to a reporting unit that has not been assigned any of the assets acquired or liabilities assumed in that acquisition, the amount of goodwill to be assigned to that unit might be determined by applying a with-and-without computation. That is, the difference between the fair value of that reporting unit before the acquisition and its fair value after the acquisition represents the amount of goodwill to be assigned to that reporting unit. ##### [350-20-35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-44) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:04b02f766ac71e77577c34b4a82f76c5b5c00543b6b03eec94b153e72ce6a8ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require that goodwill and all other related assets and liabilities assigned to reporting units for purposes of testing goodwill for impairment be reflected in the entity's reported segments. However, even though an asset may not be included in reported segment assets, the asset (or liability) shall be allocated to a reporting unit for purposes of testing for impairment if it meets the criteria in paragraph [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39). #### Reorganization of Reporting Structure ##### [350-20-35-45](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-45) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6050831f9a67ed94e0e3c30250c234eaf1f749849782f2572d6322be42ad4343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity reorganizes its reporting structure in a manner that changes the composition of one or more of its reporting units, the guidance in paragraphs [350-20-35-39 through 35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) shall be used to reassign assets and liabilities to the reporting units affected. However, goodwill shall be reassigned to the reporting units affected using a relative fair value allocation approach similar to that used when a portion of a reporting unit is to be disposed of (see paragraphs [350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) ). ##### [350-20-35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-46) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:904e7d9ddbef5a7b49054ef9e2ad765d0d73d09fc933d120f20d53435797d20f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if existing reporting unit A is to be integrated with reporting units B, C, and D, goodwill in reporting unit A would be assigned to units B, C, and D based on the relative fair values of the three portions of reporting unit A prior to those portions being integrated with reporting units B, C, and D. ##### [350-20-35-47](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-47) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2c62827c77b7dd64548631685023b0f2bbf43915157a6082cb6e4cf5f1ecc6c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsidiary goodwill might arise from any of the following: 1. a Acquisitions that a subsidiary made prior to its being acquired by the parent 2. b Acquisitions that a subsidiary made subsequent to its being acquired by the parent 3. c Goodwill arising from the business combination in which a subsidiary was acquired that the parent pushed down to the subsidiary's financial statements. ##### [350-20-35-48](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-48) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:68d573211c88e71028aec79519f95d75692599e4fd990c4dafdc5ceb56797aeb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All goodwill recognized by a public or nonpublic subsidiary (subsidiary goodwill) in its separate financial statements that are prepared in accordance with generally accepted accounting principles (GAAP) shall be accounted for in accordance with this Subtopic. Subsidiary goodwill shall be tested for impairment at the subsidiary level using the subsidiary's reporting units. If a goodwill impairment loss is recognized at the subsidiary level, goodwill of the reporting unit or units (at the higher consolidated level) in which the subsidiary's reporting unit with impaired goodwill resides must be tested for impairment if the event that gave rise to the loss at the subsidiary level would more likely than not reduce the fair value of the reporting unit (at the higher consolidated level) below its carrying amount (see paragraph [350-20-35-3C(f)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)). Only if goodwill of that higher-level reporting unit is impaired would a goodwill impairment loss be recognized at the consolidated level. ##### [350-20-35-49](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-49) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:afd3664ad2e8de30abd61088c48e6929f612752c5ec283e262c0596909411a2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If testing at the consolidated level leads to an impairment loss, that loss shall be recognized at that level separately from the subsidiary's loss. ##### [350-20-35-50](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-50) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:724dbc5dd2d0a74a523b0de5e861f50c5e46310d4a239b477090ff7e6b885b6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-20-35-51](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-51) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f2e3b36652605dc9567e3c5bef8b3b575b29d4c308dcae51dd9ba6eda0a519af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) for guidance on disposal of all or a portion of a reporting unit. ##### [350-20-35-52](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1daa31ae27a2ea429f2bcb4ca361ff713251d53239efe7acc74a13719d9d1167 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 350-20-35-52 through 35-57 superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52). ##### [350-20-35-57A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:38be6f1c511736d68db7f8a5d49c4d36c076e126fd6712205cee0d24ff9a2d46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting unit is less than wholly owned, the fair value of the reporting unit as a whole shall be determined in accordance with paragraphs [350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) , including any portion attributed to the noncontrolling interest. Any impairment loss measured in the goodwill impairment test shall be attributed to the parent and the [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.") on a rational basis. If the reporting unit includes only goodwill attributable to the parent, the goodwill impairment loss would be attributed entirely to the parent. However, if the reporting unit includes goodwill attributable to both the parent and the noncontrolling interest, the goodwill impairment loss shall be attributed to both the parent and the noncontrolling interest. ##### [350-20-35-57B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:068ca4d936230853914d39c8fb1bf56ebdb7e430bac4cfddc87f67a92d1bb852 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If all or a portion of a less-than-wholly-owned reporting unit is disposed of, the gain or loss on disposal shall be attributed to the parent and the noncontrolling interest. ##### [350-20-35-58](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-58) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:8efbf55c316a28f47f81038f67ee6b1bb678c0048c7b280cc4c78c1b81d7165d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall not be amortized. ##### [350-20-35-59](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-59) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ac456fb5c33c54f01b0024b09bb90b4d47a168b76b55bc8cc6e6c4d296898607 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32). ##### [350-20-35-60](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-60) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:858dc3669718c907275f7e3493edde93673eaabdda5b2c6b2b63386dc456ee33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-02](https://asc.understandingaccounting.org/updates/asu-2014-02/). #### Deferred Income Taxes ##### [350-20-35-61](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-61) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7cbc6e2ec68b2bb0746c58681471bf57ba49c33063632bfe8e43e219aef71c61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-740-25-3 through 25-4](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-3) states that deferred income taxes are not recognized for any portion of goodwill for which amortization is not deductible for income tax purposes. For guidance on recognition of deferred income taxes related to goodwill when amortization of goodwill is deductible for tax purposes, see paragraphs [805-740-25-6 through 25-9](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-6) . ### Accounting Alternatives #### Accounting Alternative for Amortizing Goodwill ##### [350-20-35-62](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f81d531ea429896ecdf8a5664a71595529ed3a177be062da3871d08a9392b488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill. ##### [350-20-35-63](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:727265820422d79700a0abb11e61038d24b6e8da19a6bd8be9e1d15a19c2d739 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill relating to each [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity."), [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."), [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation, or reorganization event resulting in fresh-start reporting (amortizable unit of goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. ##### [350-20-35-64](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-64) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:3b60f0485feb95f581f1a84cca0db58d2a4968c802bc9c0170fd3f4cf9f82190 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may revise the remaining useful life of goodwill upon the occurrence of events and changes in circumstances that warrant a revision to the remaining period of amortization. However, the cumulative amortization period for any amortizable unit of goodwill cannot exceed 10 years. If the estimate of the remaining useful life of goodwill is revised, the remaining carrying amount of goodwill shall be amortized prospectively on a straight-line basis over that revised remaining useful life. ##### [350-20-35-65](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-65) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:de511022f6091adb64de155c9ea262ab7cfac0368daf7c19c60911efbc24f5a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon adoption of this accounting alternative, an entity shall make an accounting policy election to test goodwill for impairment at the entity level or the [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") level. An entity that elects to perform its impairment tests at the reporting unit level shall refer to paragraphs [350-20-35-33 through 35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) and paragraphs [350-20-55-1 through 55-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-1) to determine the reporting units of an entity. ##### [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c68580298e04febcb897aa1405055b20cc3f572669a72ef0ffdc3d46dd6f5d0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of an entity (or a reporting unit) shall be tested for impairment if an event occurs or circumstances change that indicate that the fair value of the entity (or the reporting unit) may be below its carrying amount (a triggering event). Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those events or circumstances. Those examples are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of a reporting unit) in determining whether to perform the goodwill impairment test. For those entities that have elected the accounting alternative for a goodwill impairment triggering event evaluation in paragraph [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84), a goodwill triggering event evaluation shall be performed only as of the end of each reporting period. If an entity determines that there are no triggering events, then further testing is unnecessary. ##### [350-20-35-67](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:82e4da0a7a802d51ac520c19de4ce02348a56d24b4f7397f4368f71728f4863a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon the occurrence of a triggering event, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the entity (or the reporting unit) is less than its carrying amount, including goodwill. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those qualitative factors. ##### [350-20-35-68](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-68) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4031031b742fe7c8c5cbb927216ff714d358ba9bed7a7db3cea99887ee141a94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of the reporting unit) in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of its fair value with its carrying amount (or of the reporting unit's fair value with the reporting unit's carrying amount). An entity should place more weight on the events and circumstances that most affect its fair value or the carrying amount of its net assets (or the reporting unit's fair value or the carrying amount of the reporting unit's net assets). An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that its fair value is less than its carrying amount (or the fair value of the reporting unit is less than the carrying amount of the reporting unit). If an entity has a recent fair value calculation (or recent fair value calculation for the reporting unit), it also should include that calculation as a factor in its consideration of the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test. ##### [350-20-35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-69) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:36dca88e15243b771a675fdf9725495d63620b0704eb9148da57863efedeb3c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test. ##### [350-20-35-70](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-70) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2d70ee1e03c7ef6bfb755a19f7a31502fa1f3a67b3398faf2197f0b41131d45a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity has an unconditional option to bypass the qualitative assessment described in paragraphs [350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) and proceed directly to a quantitative calculation by comparing the entity's (or the reporting unit's) fair value with its carrying amount (see paragraphs [350-20-35-72 through 35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72) ). An entity may resume performing the qualitative assessment upon the occurrence of any subsequent triggering events. ##### [350-20-35-71](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-71) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:809c5029005084fbbbdbd2bcb1209f7862198ef1b7b82e08c430a0e800df7bac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is not more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount, further testing is unnecessary. ##### [350-20-35-72](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:716174a6462a3b1eeef8fba0f9035450c881120efb2c710d0ee473051eee64f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount or if the entity elected to bypass the qualitative assessment in paragraphs [350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) , the entity shall determine the fair value of the entity (or the reporting unit) and compare the fair value of the entity (or the reporting unit) with its carrying amount, including goodwill. A goodwill impairment loss shall be recognized if the carrying amount of the entity (or the reporting unit) exceeds its fair value. ##### [350-20-35-73](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-73) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b8c46a9d29a66f4675f31ba930208dad9c0671edcd7500df15fa7bf3626d5e6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A goodwill impairment loss, if any, shall be measured as the amount by which the carrying amount of an entity (or a reporting unit) including goodwill exceeds its fair value, limited to the total amount of goodwill of the entity (or allocated to the reporting unit). Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the entity (or the reporting unit), if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. See Example 2A in paragraph [350-20-55-23A](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) for an illustration. ##### [350-20-35-74](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-74) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b0ee16c7304a231cbe59f98cf4f2c7773ec7311c46914346f3c192617f17c884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-22 through 35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) shall be considered in determining the fair value of the entity (or the reporting unit). ##### [350-20-35-75](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-75) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6ae270665db26204f296af2eedff019271b6996ec2cfcbcbc74b8d05b2a4bdd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-39 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) shall be considered in assigning acquired assets (including goodwill) and assumed liabilities to the reporting unit when determining the carrying amount of a reporting unit. ##### [350-20-35-76](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-76) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d48892dccf4f6248264f5b69d698720e3ecfb01989277508d42b790e426c7827 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For an entity subject to the requirements of Topic 740 on income taxes, when determining the carrying amount of an entity (or a reporting unit), deferred income taxes shall be included in the carrying amount of an entity (or the reporting unit), regardless of whether the fair value of the entity (or the reporting unit) will be determined assuming it would be bought or sold in a taxable or nontaxable transaction. ##### [350-20-35-77](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-77) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e632ca9215072c2f5f16eab80ee79ecf33dea4f42e049a2829d8232927bfebdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The goodwill impairment loss, if any, shall be allocated to individual amortizable units of goodwill of the entity (or the reporting unit) on a pro rata basis using their relative carrying amounts or using another reasonable and rational basis. ##### [350-20-35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-78) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:328fc41670d3ad1716b91f68cb261b2eea3f08d353067a0ea0bb3665e6ef3f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis, which shall be amortized over the remaining useful life of goodwill. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited. ##### [350-20-35-79](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-79) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:00fa7dca1df96ef5fac53af128ac5b77f5ff04f89f23e91bc066d440fefb9409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill and another asset (or asset group) of the entity (or the reporting unit) are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 on property, plant, and equipment (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group is impaired, the impairment loss would be recognized prior to goodwill being tested for impairment. ##### [350-20-35-80](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-80) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9d8e06a77845cd0e5769586eeecdca17041e1b05d00383cdbc814e4dc762be01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirement in the preceding paragraph applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. ##### [350-20-35-81](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-81) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a17394371dec3c0e4a2e8ed93b6f82936f23a28daabbcf3770968d305375bfa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. ##### [350-20-35-82](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-82) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:5e4c69eeb16cab0bc85963fb5d97ed5f87d4ac5c79cee306222f331821cacada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32). #### Accounting Alternative for a Goodwill Impairment Triggering Event Evaluation ##### [350-20-35-83](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1c0b4cad7079d91b30e307e3bd44c44e6a8ed1251d89b801cd83f00a2764b69a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elect the accounting alternative for a goodwill impairment triggering event evaluation. ##### [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ed4b400c4ac8a66d7892c1f2e2585b8c23b3a686701381b2a9492a07c22498be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may elect to perform its goodwill impairment triggering event evaluation only as of the end of each reporting period, whether the reporting period is an interim or annual period. That is, the entity would not evaluate goodwill impairment triggering events and measure any related impairment during the reporting period. An entity electing the accounting alternative shall assess whether events or circumstances have occurred that would require an entity to test goodwill for impairment as follows: 1. a For an entity that has elected the accounting alternative for amortizing goodwill, the entity's evaluation of a triggering event, as described in paragraph [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66), shall be performed only as of each reporting date. 2. b For an entity that has not elected the accounting alternative for amortizing goodwill: 1. 1 If the entity performs its annual goodwill impairment test as of the end of the reporting period, the entity shall not evaluate its goodwill for impairment during the reporting period as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30). 2. 2 If the entity performs its annual goodwill impairment test on a date other than the end of the reporting period (in accordance with paragraph [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28)), the entity's evaluation of impairment between annual goodwill impairment tests (as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)) shall be performed only as of the end of a reporting period. ##### [350-20-35-85](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-85) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:0336f1831cbd04d5ac48da94284d235976761918bc58eaebac0883876043074c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity electing this accounting alternative shall apply it only to goodwill evaluated in accordance with this Subtopic. This accounting alternative does not change the following: 1. a The requirement to assess other assets for impairment (for example, long-lived assets and indefinite-lived intangibles) under existing guidance. If the impairment test related to other assets would have resulted in a goodwill impairment triggering event, an entity electing this accounting alternative should consider the results of an impairment test related to other assets in connection with its goodwill impairment test only as of its annual goodwill impairment testing date and the reporting date, whether that date is an interim or annual reporting date, as applicable. 2. b The requirements to test the remaining goodwill for impairment if only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of in accordance with paragraph [350-20-40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7). ##### [350-20-35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-86) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2c2bc09d23657ca504d3bec83fb183fc8df784002cfc4f7a9faa8fd6bfaf15dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not apply this guidance retroactively to interim periods for which annual financial statements have already been issued.