{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/20/","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.","number":"350-20","topic":"350","title":"Goodwill","area":"Assets","paragraphs":178,"summary":"ASC 350-20 governs the accounting for goodwill after its initial recognition (initial recognition/measurement is in 805-30, 805-60, or 958-805) and prohibits capitalizing internally developed goodwill. Under the general model, goodwill is not amortized but is tested for impairment at least annually at the reporting unit level, with an optional qualitative \"more likely than not\" screen; if the quantitative test shows the reporting unit's carrying amount exceeds its fair value, a loss is recognized for that excess, capped at the goodwill allocated to the unit. Private companies and not-for-profit entities may elect accounting alternatives to amortize goodwill over 10 years or less and to test only upon a triggering event, and/or to evaluate triggering events only as of the end of each reporting period.","concepts":["goodwill","reporting unit","annual impairment test","qualitative assessment","more likely than not","goodwill amortization accounting alternative","triggering event evaluation","relative fair value allocation"],"categories":["Impairment","Intangibles and goodwill","Subsequent measurement","Disclosure"],"level":"intermediate","topic_title":"Intangibles—Goodwill and Other","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-20-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Formation DateAddedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2010-0701/28/2010
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Nonprofit ActivityAddedAccounting Standards Update No. 2010-0701/28/2010
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0201/16/2014
Private CompanyAddedAccounting Standards Update No. 2014-0201/16/2014
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0201/16/2014
Securities and Exchange Commission (SEC) FilerAddedAccounting Standards Update No. 2017-0401/26/2017
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
350-20-05-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-05-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-05-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-05-3SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-05-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-4 through 05-6
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-05-4AAmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-05-4AAmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-4AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-4BAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-5 through 05-6
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-5AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-5AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-15-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-15-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-15-2ASupersededAccounting Standards Update No. 2010-0701/28/2010
350-20-15-3AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-15-3A through 15-5
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-15-3AAmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-15-3AAddedAccounting Standards Update No. 2016-0303/07/2016
350-20-15-4AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-15-4AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-15-4AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-15-4AAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-15-5AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-15-6AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-25-1AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-25-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-1 through 35-3
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-3AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-3A through 35-3G
AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-3BAmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-3D through 35-4
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-6AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-6AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-7AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-8AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-8A through 35-11
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-35-8AAmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-8AAddedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-8BAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-14 through 35-21
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-35-14AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-25AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-25AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-26AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-29SupersededAccounting Standards Update No. 2011-0809/15/2011
350-20-35-30AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-30AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-30AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-34AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-39AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-41AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-35-45AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-48AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-51AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-52 through 35-57SupersededAccounting Standards Update No. 2012-0410/01/2012
350-20-35-57AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-57AAmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-57AAmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-60SupersededAccounting Standards Update No. 2014-0201/16/2014
350-20-35-62AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-62 through 35-82
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-35-63AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-35-63AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-63AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-35-65 through 35-67
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-73AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-79AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-81AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-83 through 35-86
AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-40-1 through 40-7
AddedAccounting Standards Update No. 2012-0410/01/2012
350-20-40-2 through 40-7
AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-40-7AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-40-8AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-40-8AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-40-9AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-40-9AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-45-3AmendedAccounting Standards Update No. 2016-1912/14/2016
350-20-45-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-45-4 through 45-7
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-45-6AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-1AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-50-2AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-50-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-50-3AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-50-3AAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-3BAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-4AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-50-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-4AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-4 through 50-7
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-50-6AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-7AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-50-7AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-55-3AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-55-7AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-55-10AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-12 through 55-17
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-13AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-55-19 through 55-26
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-20AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-55-23A through 55-23D
AddedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-25AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-55-26AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-55-26AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-55-27 through 55-29
AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-1AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-65-2AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-2AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-65-2AmendedAccounting Standards Update No. 2016-0303/07/2016
350-20-65-2AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-65-3AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-3AmendedAccounting Standards Update No. 2019-1011/15/2019
350-20-65-3AmendedMaintenance Update 2017-04 (PDF)03/06/2017
350-20-65-3AddedAccounting Standards Update No. 2017-0401/26/2017
350-20-65-4AddedAccounting Standards Update No. 2021-0303/30/2021
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAcquirer | Amended | Accounting Standards Update No. 2025-03 | 05/12/2025 |\nAcquisition …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f65d5d587226b284197a9abb56a298b1d9006bd6605e77ed171733ef0c945994","downloaded_from":"2026-09-10T00:00:39.885Z","last_downloaded_at":"2026-09-10T00:00:39.885Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482563","source_sha256":"eb0806eb1ce5ad179acbd918121d353f6bfcaeb4b1706e6b3d1d614078da9924"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4e14a2c0f51a4e064e279a02c4567e5d2ba026bcdbd0b1b991113e7bc1c9a3d","downloaded_from":"2026-09-10T00:00:39.885Z","last_downloaded_at":"2026-09-10T00:00:39.885Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482563","source_sha256":"eb0806eb1ce5ad179acbd918121d353f6bfcaeb4b1706e6b3d1d614078da9924"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55bbf1a03209f7f7afff394aa5d2f8399bdc045d4e80bd21aec8e46152228c1c","downloaded_from":"2026-09-10T00:00:39.885Z","last_downloaded_at":"2026-09-10T00:00:39.885Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482563","source_sha256":"eb0806eb1ce5ad179acbd918121d353f6bfcaeb4b1706e6b3d1d614078da9924"}},{"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.
","snippet":"This Subtopic addresses financial accounting and reporting for goodwill subsequent to its acquisition and for the cost of internally developing goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccabf1b89c315c3a1bb1c01cafca0dee0181ea155fb9266f9d896e502cb9d996","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":"350-20-05-2","para":"05-2","html":"
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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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a06a15d2d7cec8d6c87dc7301b8266ae33e2e5aec6e1268cd33a5577ecbd18f","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0ed8930ab292c867c7dae7d253e8459fa7af881ccaad3d27107bcc210bd713d","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"350-20-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to the following transactions and activities:
  1. a
    Goodwill that an entity recognizes in accordance with Subtopic 805-30, Subtopic 805-60, or Subtopic 958-805 after it has been initially recognized and measured
  2. b
    The costs of internally developing goodwill and other unidentifiable intangible assets with indeterminate lives
  3. c
    Subparagraph not used.
  4. d
    Amounts recognized as goodwill in applying the equity method of accounting and to the excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852.
  5. e
    Subparagraph not used.
","snippet":"The guidance in this Subtopic applies to the following transactions and activities:\n(a) Goodwill that an entity recognizes in accordance with Subtopic 805-30, Subtopic 805-60, or Subtopic 958-805 after it has been initia…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1afd9b109a7e4b8a2503c81f1c1da93a07e88c0854b2536503a3f2bc3801b6bc","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-2A","para":"15-2A","html":"
Paragraph superseded by Accounting Standards Update No. 2010-07.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2010-07.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64cd6ef2a58b73f5f2ef949ebaf850e382fb31383d4874c8d96d2604c8c14603","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-3","para":"15-3","html":"
Although goodwill is an intangible asset, the term intangible asset is used in this Subtopic to refer to an intangible asset other than goodwill.
","snippet":"Although goodwill is an intangible asset, the term intangible asset is used in this Subtopic to refer to an intangible asset other than goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ca44b264190ee6592f7cb5817eb25ca5b6736b4e63915ddff86a99354f016a5","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-3A","para":"15-3A","html":"
Paragraphs
350-20-15-4 through 15-6
,
350-20-35-62 through 35-86
,
350-20-40-8 through 40-9
,
350-20-45-4 through 45-7
,
350-20-50-3A through 50-7
,
350-20-55-26 through 55-29
, and 323-10-35-13 provide guidance for an entity electing the accounting alternatives in this Subtopic. See paragraphs 350-20-65-2 and 350-20-65-4for transition guidance for private companies and not-for-profit entities on applying the accounting alternatives in Subtopic 350-20.
","snippet":"Paragraphs 350-20-15-4 through 15-6, 350-20-35-62 through 35-86, 350-20-40-8 through 40-9, 350-20-45-4 through 45-7, 350-20-50-3A through 50-7, 350-20-55-26 through 55-29, and 323-10-35-13 provide guidance for an entity …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ff16504c0d91f06a7fc3f4854c5f9d5c1de33f17a43f0039d056195252006da","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eaf9484f3e193d853cc57093cabfeab49d4af19929e6a2d22a16ee289d5584a2","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"block":"Accounting Alternatives","heading":null,"paragraphs":[{"citation":"350-20-15-4","para":"15-4","html":"
A private companyor not-for-profit entitymay make an accounting policy election to apply the accounting alternative for amortizing goodwill in this Subtopic. The guidance in the Accounting Alternatives Subsections of this Subtopic applies to the following transactions or activities:
  1. a
    Goodwill that an entity recognizes in a business combination in accordance with Subtopic 805-30, in an acquisition by a not-for-profit entity in accordance with Subtopic 958-805, or in a joint venture formation in accordance with Subtopic 805-60after it has been initially recognized and measured
  2. b
    Amounts recognized as goodwill in applying the equity method of accounting in accordance with Topic 323 on investments—equity method and joint ventures, and to the excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852 on reorganizations.
","snippet":"A private companyor not-for-profit entitymay make an accounting policy election to apply the accounting alternative for amortizing goodwill in this Subtopic. The guidance in the Accounting Alternatives Subsections of thi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a5953103bcd4cb4e59c89fe6cbe9a99e99e8d0df8f72fc0eeca78b148a8001e","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-4A","para":"15-4A","html":"
A private company or not-for-profit entity may make an accounting policy election to apply the accounting alternative for a goodwill impairment triggering event evaluation to goodwill subsequently accounted for in accordance with Subtopic 350-20.
","snippet":"A private company or not-for-profit entity may make an accounting policy election to apply the accounting alternative for a goodwill impairment triggering event evaluation to goodwill subsequently accounted for in accord…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6caabcdb7f10c4085a544dfbd91b76b14931db53e877cbed8eca3dd196cd7c3d","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-5","para":"15-5","html":"
An entity within the scope of paragraph 350-20-15-4 or paragraph 350-20-15-4A that elects the accounting alternative for amortizing goodwill or the accounting alternative for goodwill impairment triggering event evaluation shall apply all of the related subsequent measurement, derecognition, other presentation matters, and disclosure requirements upon election. An accounting alternative, once elected, shall be applied to existing goodwill and to all additions to goodwill recognized in future transactions within the scope of that accounting alternative.
","snippet":"An entity within the scope of paragraph 350-20-15-4 or paragraph 350-20-15-4A that elects the accounting alternative for amortizing goodwill or the accounting alternative for goodwill impairment triggering event evaluati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06bd4def962253ef40e9861c5577d2fc9641b6844997c3491061ac59b3910620","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"citation":"350-20-15-6","para":"15-6","html":"
An entity that elects either of the accounting alternatives in this Subtopic is not required to elect or precluded from electing the other alternative.
","snippet":"An entity that elects either of the accounting alternatives in this Subtopic is not required to elect or precluded from electing the other alternative.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:16f6bdcf65e58f085911bba1c4f5d2c6dc9004b2aaa9b9a83ee9305b10e4fbe3","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:065df3aa350f91f51df1b503a73d9ac26a919e5ad1621787b1e4ccf620294eb1","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9bc961ffae82944a6f0daca96779811fb6af45ced9c609c4ede48eca9b2b7e62","downloaded_from":"2026-09-10T00:00:46.644Z","last_downloaded_at":"2026-09-10T00:00:46.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482713","source_sha256":"278ae928416bb9d3c531fbdb192221d6013dbc96c169b5264a17f3b166f960bd"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-20-25-1","para":"25-1","html":"
See Subtopic 805-30 for guidance on recognition at acquisition of goodwill acquired in a business combination. See Subtopic 958-805 for guidance on recognition at acquisition of goodwill acquired in an acquisition by a not-for-profit entity. See Subtopic 805-60 for guidance on recognition of goodwill by a joint venture upon formation.
","snippet":"See Subtopic 805-30 for guidance on recognition at acquisition of goodwill acquired in a business combination. See Subtopic 958-805 for guidance on recognition at acquisition of goodwill acquired in an acquisition by a n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dbda9c3bee805389c4b29d727bb7a1df8a009e34402c80baf4ab55c993d9110","downloaded_from":"2026-09-10T00:00:51.479Z","last_downloaded_at":"2026-09-10T00:00:51.479Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482666","source_sha256":"8b0517821cbd117a74c337a6bb628965fcc1160c541f3172d8f680b250a2ab7f"}},{"citation":"350-20-25-2","para":"25-2","html":"
The excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852 shall be reported as goodwill and accounted for in the same manner as goodwill.
","snippet":"The excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852 shall be reported as goodwill and accounted for in the same manner as goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c76f14276a10a43d24cfd078d1b7e5d9f65cfa6237a7e24bf7f5bfc11bb1f1ae","downloaded_from":"2026-09-10T00:00:51.479Z","last_downloaded_at":"2026-09-10T00:00:51.479Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482666","source_sha256":"8b0517821cbd117a74c337a6bb628965fcc1160c541f3172d8f680b250a2ab7f"}},{"citation":"350-20-25-3","para":"25-3","html":"
Costs of internally developing, maintaining, or restoring intangible assets (including goodwill) that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business and related to an entity as a whole, shall be recognized as an expense when incurred.
","snippet":"Costs of internally developing, maintaining, or restoring intangible assets (including goodwill) that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business and re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30defd01df17c3680fe61a10cac53c1cde18129906927856f3e9064f609309d4","downloaded_from":"2026-09-10T00:00:51.479Z","last_downloaded_at":"2026-09-10T00:00:51.479Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482666","source_sha256":"8b0517821cbd117a74c337a6bb628965fcc1160c541f3172d8f680b250a2ab7f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2743622ca93f5fe47139e568f1f55b9c775d37ecb66519d40a326b1ece82964","downloaded_from":"2026-09-10T00:00:51.479Z","last_downloaded_at":"2026-09-10T00:00:51.479Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482666","source_sha256":"8b0517821cbd117a74c337a6bb628965fcc1160c541f3172d8f680b250a2ab7f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58aa00208180de5bd246451a9ba01dee098938f6d05d93ec76103cce2a9daa64","downloaded_from":"2026-09-10T00:00:51.479Z","last_downloaded_at":"2026-09-10T00:00:51.479Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482666","source_sha256":"8b0517821cbd117a74c337a6bb628965fcc1160c541f3172d8f680b250a2ab7f"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Overall Accounting for Goodwill","paragraphs":[{"citation":"350-20-35-1","para":"35-1","html":"
Goodwill 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. (Paragraphs
350-20-35-33 through 35-46
provide guidance on determining reporting units.)
","snippet":"Goodwill 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. (Paragraphs 350-20-35-33 through 35-46 provide guidance on dete…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d67fb412952a31da9a85d02304aefc75a32079d846b1f5d92579cc90bf52c363","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-2","para":"35-2","html":"
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 when measuring the goodwill impairment loss.
","snippet":"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 am…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2a2fae1d6d73f0c180cad08f093d0a9eadebad31affbb0343db9fbbc2af0d9a","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3","para":"35-3","html":"
An entity may first assess qualitative factors, as described in paragraphs
350-20-35-3A through 35-3G
, to determine whether it is necessary to perform the quantitative goodwill impairment test discussed in paragraphs
350-20-35-4 through 35-13
. 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).
","snippet":"An entity may first assess qualitative factors, as described in paragraphs 350-20-35-3A through 35-3G, to determine whether it is necessary to perform the quantitative goodwill impairment test discussed in paragraphs 350…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af07d69ea271bf2e61b646fa39eb388af410be093f509c3f8ce8739ce7d5033c","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63f5b83fa3adc8ae1a3910270c02b3a0444895e782271aaecaeb20bbec3fc89b","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Recognition and Measurement of an Impairment Loss","paragraphs":[{"citation":"350-20-35-3A","para":"35-3A","html":"
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.
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:618cecd5dab9b61485117628a8ddd8e9aaa09b696712069bb243866f0b5514fd","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3B","para":"35-3B","html":"
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.
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6f6c9059735663f5b86768e3dec9c77a4c9b51337026b2c821807907f10c0fa","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3C","para":"35-3C","html":"
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).
","snippet":"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 circumstanc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0ef6836a37c3e6bec934535374b518a9b0f5fae9059f36f6e2a321947cc6e26","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3D","para":"35-3D","html":"
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.
","snippet":"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 tha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a80321b19fce3a330079c728196b1b4983e3344d0dddae38ed07c8b04c9679af","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3E","para":"35-3E","html":"
If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), 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.
","snippet":"If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), an entity determines that it is more likely than not that the fair value of a reporting unit i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75fa296cd79507f4acb95b40bc80bd7b0e1f1c748c7956b0dffadc2fadc8ca5d","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3F","para":"35-3F","html":"
The examples included in paragraph 350-20-35-3C(a) through (g) 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.
","snippet":"The examples included in paragraph 350-20-35-3C(a) through (g) 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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3b047faeb4374d576deaa96d68e3df1eec5d79acdea60e505a068cfc69805bc","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-3G","para":"35-3G","html":"
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) 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.
","snippet":"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 repo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a671a85fdde5b942a2ce8f9b47bb23c7f7b9944800eefb1b3b0239c644a5d14a","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-4","para":"35-4","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:495810ea7c332a7eb61bccf716982914e3d70b89b242d7670360784f0ef65466","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-5","para":"35-5","html":"
The guidance in paragraphs
350-20-35-22 through 35-24
shall be considered in determining the fair value of a reporting unit.
","snippet":"The guidance in paragraphs 350-20-35-22 through 35-24 shall be considered in determining the fair value of a reporting unit.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba08554d3683b6a0e545b33b301f9333f02df00e20f5fb56caf92e52102be0f0","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-6","para":"35-6","html":"
If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired.
","snippet":"If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4346a4d1ed8a13f69b3e384e5185e3c16edff527813f28aae7f28534b675e24e","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-7","para":"35-7","html":"
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.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84e7f19c91bef062e0f172fab18a4df3eefb4a66fd6f8f9b8bc12a991585891d","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-8","para":"35-8","html":"
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 when measuring the goodwill impairment loss.
","snippet":"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. Addit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ec791b3e906ebe8f46bba3e3306cf97d6387e1fe8e5caf805a4d0e2ca9bffa6","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-8A","para":"35-8A","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:f6e43afe36486975d5173eaafbd86f2cbd0a12235b32067fb0fb65a18ad5aba8","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-8B","para":"35-8B","html":"
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
. 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
for an illustration of the calculation.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c54ec27925a1de4c75d3ee9344bbbf839704726f533b73163e6abd4f99731b94","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-9","para":"35-9","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:fd6ee29b4f14ec57926a135fa82f0cc07625e0517b2a3e9dd7e614425ead4106","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-10","para":"35-10","html":"
Paragraph superseded by Accounting Standards Update No. 2017-04.
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Paragraph superseded by Accounting Standards Update No. 2017-04.
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After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis.
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Subsequent reversal of a previously recognized goodwill impairment loss is prohibited once the measurement of that loss is recognized.
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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.
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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.
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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.
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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
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In making that determination, an entity shall consider all of the following:
  1. a
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  2. b
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  3. c
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In determining the feasibility of a nontaxable transaction, an entity shall consider, among other factors, both of the following:
  1. a
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  2. b
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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). 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.
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Paragraph superseded by Accounting Standards Update No. 2011-08.
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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)includes examples of such events and circumstances. Paragraphs
350-20-35-3F through 35-3G
describe the process for making these evaluations.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  5. e
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  6. f
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
  7. g
    Subparagraph superseded by Accounting Standards Update No. 2011-08.
","snippet":"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 amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:640783555f53af230e1b43e3528dd06c7464d46e0ba56140ea7a24d4bdff1a73","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-31","para":"35-31","html":"
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.
","snippet":"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 significan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:371f2bd3661aefa1883392d3107aaef0fe4d12f6edf1a172af5bd6bc567165aa","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-32","para":"35-32","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a13c539a5196cc0dfb3ec16805d5b964a97cb866b53f9a2495d82b20f15b62a9","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc74be1deb42f1cd254823ebb15d9d64e73d103940783caf7d8e71aeb845ee3b","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Reporting Unit","paragraphs":[{"citation":"350-20-35-33","para":"35-33","html":"
The provisions of Topic 280 shall be used to determine the reporting units of an entity.
","snippet":"The provisions of Topic 280 shall be used to determine the reporting units of an entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4c66bfa8b0bf851cc18c3092d82cafbada6a8c5b3d8b32bf4a4e68b26ef1adf","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-34","para":"35-34","html":"
A component of an operating segment is a reporting unit if the component constitutes a business or a nonprofit activity for which discrete financial information is available and segment management, as that term is defined in paragraph 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.
","snippet":"A component of an operating segment is a reporting unit if the component constitutes a business or a nonprofit activity for which discrete financial information is available and segment management, as that term is define…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95bd365880d3078b954cc720713d37337d07b9959028b41fcce05b50403503cc","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-35","para":"35-35","html":"
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 shall be considered in determining if the components of an operating segment have similar economic characteristics.
","snippet":"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 shall be considered in determ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:89a7b0f8b2e578669742ee47dcaea50f5c79f39e05e06d507d8730d3cd4903c3","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-36","para":"35-36","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a67701996cefa45545c02fc53484fc471b5c5d444e546bc66334fe17432df6d","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-37","para":"35-37","html":"
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).
","snippet":"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 un…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47ab8cd31da5919e8ecabc13c514d03b99078e8251092b59cfa106b70a6351ec","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-38","para":"35-38","html":"
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
to determine its operating segments for purposes of determining its reporting units.
","snippet":"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 paragra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93d9b04ce265086a1314c0452e088dd4eeab4e55e4e73da9ce098d59eb92caf5","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b8ccb565e002a2ae134f4f1e7d150370ae6b2aa9c9189635b4707795a4e4335","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Assigning Acquired Assets and Assumed Liabilities to a Reporting Unit","paragraphs":[{"citation":"350-20-35-39","para":"35-39","html":"
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.
","snippet":"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:\n(a) The asset will b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1cf76eef7f21cccebda2f5b44713fa4a7a3141a58d23186f2c49cc5506c8ad1e","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-39A","para":"35-39A","html":"
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.
","snippet":"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 transla…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfa10124647cb352cf49088d8ae4c7bf6a07937c1d288ada38ed9471e490dc21","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-40","para":"35-40","html":"
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.
","snippet":"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 re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9efed1920275397f15da134f8ff1ebc9ac0a9876546f259917aec0d3b5d8300c","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0265002a71fffcd5c349da2a33e537a98a86dc7c342fc878f07a3a3d73acdebf","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Assigning Goodwill to Reporting Units","paragraphs":[{"citation":"350-20-35-41","para":"35-41","html":"
For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination or recognized by a joint venture upon formation shall be assigned to one or more reporting units as of the acquisition date or the joint venture formation date. 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
.
","snippet":"For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination or recognized by a joint venture upon formation shall be assigned to one or more reporting units as of the acquisition d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:612d8d0e07325c7da4c8b4c4eed8ddf5d5721442fa72b39ebb50e7d955c553db","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-42","para":"35-42","html":"
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.
","snippet":"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:\n(a) An entity would deter…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1eabb06a50907415c977f8efa5df91f0372695c0e86e87a16e0948d4400f5aff","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-43","para":"35-43","html":"
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.
","snippet":"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 b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fcff861dc8e3b9c56c5ea8288af1b86618ca4a3d77fd23186ccebb573505165","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-44","para":"35-44","html":"
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.
","snippet":"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. Howeve…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04b02f766ac71e77577c34b4a82f76c5b5c00543b6b03eec94b153e72ce6a8ef","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6545be6749e5ddad4989f75fb00437a93e35b59ef3b538e4eacf5f97f9605304","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Reorganization of Reporting Structure","paragraphs":[{"citation":"350-20-35-45","para":"35-45","html":"
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
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
).
","snippet":"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 shall be used to reassign assets an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6050831f9a67ed94e0e3c30250c234eaf1f749849782f2572d6322be42ad4343","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-46","para":"35-46","html":"
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.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:904e7d9ddbef5a7b49054ef9e2ad765d0d73d09fc933d120f20d53435797d20f","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-47","para":"35-47","html":"
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.
","snippet":"Subsidiary goodwill might arise from any of the following:\n(a) Acquisitions that a subsidiary made prior to its being acquired by the parent\n(b) Acquisitions that a subsidiary made subsequent to its being acquired by the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c62827c77b7dd64548631685023b0f2bbf43915157a6082cb6e4cf5f1ecc6c2","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-48","para":"35-48","html":"
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)). Only if goodwill of that higher-level reporting unit is impaired would a goodwill impairment loss be recognized at the consolidated level.
","snippet":"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 account…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68d573211c88e71028aec79519f95d75692599e4fd990c4dafdc5ceb56797aeb","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-49","para":"35-49","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:afd3664ad2e8de30abd61088c48e6929f612752c5ec283e262c0596909411a2c","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-50","para":"35-50","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:724dbc5dd2d0a74a523b0de5e861f50c5e46310d4a239b477090ff7e6b885b6f","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-51","para":"35-51","html":"
See paragraphs
350-20-40-1 through 40-7
for guidance on disposal of all or a portion of a reporting unit.
","snippet":"See paragraphs 350-20-40-1 through 40-7 for guidance on disposal of all or a portion of a reporting unit.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2e3b36652605dc9567e3c5bef8b3b575b29d4c308dcae51dd9ba6eda0a519af","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-52","para":"35-52","html":"
Paragraphs 350-20-35-52 through 35-57 superseded by Accounting Standards Update No. 2012-04.
","snippet":"Paragraphs 350-20-35-52 through 35-57 superseded by Accounting Standards Update No. 2012-04.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1daa31ae27a2ea429f2bcb4ca361ff713251d53239efe7acc74a13719d9d1167","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-57A","para":"35-57A","html":"
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
, 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 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.
","snippet":"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, including any portion attributed to the noncont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38be6f1c511736d68db7f8a5d49c4d36c076e126fd6712205cee0d24ff9a2d46","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-57B","para":"35-57B","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:068ca4d936230853914d39c8fb1bf56ebdb7e430bac4cfddc87f67a92d1bb852","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-58","para":"35-58","html":"
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 (equity method goodwill) shall not be amortized.
","snippet":"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 (equ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8efbf55c316a28f47f81038f67ee6b1bb678c0048c7b280cc4c78c1b81d7165d","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-59","para":"35-59","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac456fb5c33c54f01b0024b09bb90b4d47a168b76b55bc8cc6e6c4d296898607","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-60","para":"35-60","html":"
Paragraph superseded by Accounting Standards Update No. 2014-02.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-02.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:858dc3669718c907275f7e3493edde93673eaabdda5b2c6b2b63386dc456ee33","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c768e46ba138ed3d595c879e4d04f7783cae4d301feead1952b891557c84f44f","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":null,"heading":"Deferred Income Taxes","paragraphs":[{"citation":"350-20-35-61","para":"35-61","html":"
Paragraph
805-740-25-3 through 25-4
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
.
","snippet":"Paragraph 805-740-25-3 through 25-4 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 deferr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cbc6e2ec68b2bb0746c58681471bf57ba49c33063632bfe8e43e219aef71c61","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbfe3b3c0f28e626fb419ec9f241dfd01baf69ce97fcb33a107b035a8d1b6ce6","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":"Accounting Alternatives","heading":"Accounting Alternative for Amortizing Goodwill","paragraphs":[{"citation":"350-20-35-62","para":"35-62","html":"
The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.
","snippet":"The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f81d531ea429896ecdf8a5664a71595529ed3a177be062da3871d08a9392b488","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-63","para":"35-63","html":"
Goodwill relating to each business combination, acquisition by a not-for-profit entity, joint venture 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.
","snippet":"Goodwill relating to each business combination, acquisition by a not-for-profit entity, joint venture formation, or reorganization event resulting in fresh-start reporting (amortizable unit of goodwill) shall be amortize…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:727265820422d79700a0abb11e61038d24b6e8da19a6bd8be9e1d15a19c2d739","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-64","para":"35-64","html":"
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.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b60f0485feb95f581f1a84cca0db58d2a4968c802bc9c0170fd3f4cf9f82190","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-65","para":"35-65","html":"
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 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
and paragraphs
350-20-55-1 through 55-9
to determine the reporting units of an entity.
","snippet":"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 level. An entity that elects to perform its impai…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de511022f6091adb64de155c9ea262ab7cfac0368daf7c19c60911efbc24f5a9","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-66","para":"35-66","html":"
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) 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, 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.
","snippet":"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 amou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c68580298e04febcb897aa1405055b20cc3f572669a72ef0ffdc3d46dd6f5d0f","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-67","para":"35-67","html":"
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) includes examples of those qualitative factors.
","snippet":"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 th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:82e4da0a7a802d51ac520c19de4ce02348a56d24b4f7397f4368f71728f4863a","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-68","para":"35-68","html":"
Because the examples included in paragraph 350-20-35-3C(a) through (g) 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.
","snippet":"Because the examples included in paragraph 350-20-35-3C(a) through (g) are not all-inclusive, an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4031031b742fe7c8c5cbb927216ff714d358ba9bed7a7db3cea99887ee141a94","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-69","para":"35-69","html":"
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) 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.
","snippet":"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 en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36dca88e15243b771a675fdf9725495d63620b0704eb9148da57863efedeb3c5","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-70","para":"35-70","html":"
An entity has an unconditional option to bypass the qualitative assessment described in paragraphs
350-20-35-67 through 35-69
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
). An entity may resume performing the qualitative assessment upon the occurrence of any subsequent triggering events.
","snippet":"An entity has an unconditional option to bypass the qualitative assessment described in paragraphs 350-20-35-67 through 35-69 and proceed directly to a quantitative calculation by comparing the entity's (or the reporting…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d70ee1e03c7ef6bfb755a19f7a31502fa1f3a67b3398faf2197f0b41131d45a","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-71","para":"35-71","html":"
If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), 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.
","snippet":"If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), an entity determines that it is not more likely than not that the fair value of the entity (or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:809c5029005084fbbbdbd2bcb1209f7862198ef1b7b82e08c430a0e800df7bac","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-72","para":"35-72","html":"
If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), 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
, 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.
","snippet":"If, after assessing the totality of events or circumstances such as those described in paragraph 350-20-35-3C(a) through (g), an entity determines that it is more likely than not that the fair value of the entity (or the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:716174a6462a3b1eeef8fba0f9035450c881120efb2c710d0ee473051eee64f4","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-73","para":"35-73","html":"
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 when measuring the goodwill impairment loss. See Example 2A in paragraph 350-20-55-23A for an illustration.
","snippet":"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 th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8c46a9d29a66f4675f31ba930208dad9c0671edcd7500df15fa7bf3626d5e6d","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-74","para":"35-74","html":"
The guidance in paragraphs
350-20-35-22 through 35-27
shall be considered in determining the fair value of the entity (or the reporting unit).
","snippet":"The guidance in paragraphs 350-20-35-22 through 35-27 shall be considered in determining the fair value of the entity (or the reporting unit).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0ee16c7304a231cbe59f98cf4f2c7773ec7311c46914346f3c192617f17c884","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-75","para":"35-75","html":"
The guidance in paragraphs
350-20-35-39 through 35-44
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.
","snippet":"The guidance in paragraphs 350-20-35-39 through 35-44 shall be considered in assigning acquired assets (including goodwill) and assumed liabilities to the reporting unit when determining the carrying amount of a reportin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ae270665db26204f296af2eedff019271b6996ec2cfcbcbc74b8d05b2a4bdd8","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-76","para":"35-76","html":"
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.
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d48892dccf4f6248264f5b69d698720e3ecfb01989277508d42b790e426c7827","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-77","para":"35-77","html":"
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.
","snippet":"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 reason…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e632ca9215072c2f5f16eab80ee79ecf33dea4f42e049a2829d8232927bfebdf","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-78","para":"35-78","html":"
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.
","snippet":"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 pr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:328fc41670d3ad1716b91f68cb261b2eea3f08d353067a0ea0bb3665e6ef3f60","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-79","para":"35-79","html":"
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.
","snippet":"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 exampl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00fa7dca1df96ef5fac53af128ac5b77f5ff04f89f23e91bc066d440fefb9409","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-80","para":"35-80","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d8e06a77845cd0e5769586eeecdca17041e1b05d00383cdbc814e4dc762be01","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-81","para":"35-81","html":"
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 (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.
","snippet":"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 (equ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a17394371dec3c0e4a2e8ed93b6f82936f23a28daabbcf3770968d305375bfa5","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-82","para":"35-82","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e4c69eeb16cab0bc85963fb5d97ed5f87d4ac5c79cee306222f331821cacada","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a289f2ce77d29d2091c8d3ba982f0334ba30b366f271b77009eda7b6bc71d0a3","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"block":"Accounting Alternatives","heading":"Accounting Alternative for a Goodwill Impairment Triggering Event Evaluation","paragraphs":[{"citation":"350-20-35-83","para":"35-83","html":"
The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4A that elect the accounting alternative for a goodwill impairment triggering event evaluation.
","snippet":"The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4A that elect the accounting alternative for a goodwill impairment triggering event evaluation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c0b4cad7079d91b30e307e3bd44c44e6a8ed1251d89b801cd83f00a2764b69a","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-84","para":"35-84","html":"
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, 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.
    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), the entity's evaluation of impairment between annual goodwill impairment tests (as described in paragraph 350-20-35-30) shall be performed only as of the end of a reporting period.
","snippet":"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 e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed4b400c4ac8a66d7892c1f2e2585b8c23b3a686701381b2a9492a07c22498be","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-85","para":"35-85","html":"
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.
","snippet":"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:\n(a) The requirement to assess other as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0336f1831cbd04d5ac48da94284d235976761918bc58eaebac0883876043074c","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"citation":"350-20-35-86","para":"35-86","html":"
An entity shall not apply this guidance retroactively to interim periods for which annual financial statements have already been issued.
","snippet":"An entity shall not apply this guidance retroactively to interim periods for which annual financial statements have already been issued.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c2bc09d23657ca504d3bec83fb183fc8df784002cfc4f7a9faa8fd6bfaf15dd","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e4ef119950ea2e1100b5a6451cf430e99077aab11c9f3771d0b9832a8f5dc7e","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7dc68c5a1fe42f691b878948cc27f94e4c74a6f94837deb0ad01463080f6fdf4","downloaded_from":"2026-09-10T00:00:53.776Z","last_downloaded_at":"2026-09-10T00:00:53.776Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482646","source_sha256":"377794d0eadbbda25bbd1ed6ef7dc509928162a3e2d4f57edfc5a89b414c894a"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Disposal of All or a Portion of a Reporting Unit","paragraphs":[{"citation":"350-20-40-1","para":"40-1","html":"
When a reporting unit is to be disposed of in its entirety, goodwill of that reporting unit shall be included in the carrying amount of the reporting unit in determining the gain or loss on disposal.
","snippet":"When a reporting unit is to be disposed of in its entirety, goodwill of that reporting unit shall be included in the carrying amount of the reporting unit in determining the gain or loss on disposal.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:939c706a8a91635b0441c60f487b809f0a296076a2f77c6b9450d924b05d6ea8","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-2","para":"40-2","html":"
When a portion of a reporting unit that constitutes a business (see Section 805-10-55) or nonprofit activityis to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amount of the business or nonprofit activity in determining the gain or loss on disposal.
","snippet":"When a portion of a reporting unit that constitutes a business (see Section 805-10-55) or nonprofit activityis to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f11f5c2fef2080122f5f4eee679515820771cde60873ef13ac7c6170165cfd10","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-3","para":"40-3","html":"
The amount of goodwill to be included in that carrying amount shall be based on the relative fair values of the business or nonprofit activity to be disposed of and the portion of the reporting unit that will be retained. For example, if a reporting unit with a fair value of $400 is selling a business or nonprofit activity for $100 and the fair value of the reporting unit excluding the business or nonprofit activity being sold is $300, 25 percent of the goodwill residing in the reporting unit would be included in the carrying amount of the business or nonprofit activity to be sold.
","snippet":"The amount of goodwill to be included in that carrying amount shall be based on the relative fair values of the business or nonprofit activity to be disposed of and the portion of the reporting unit that will be retained…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:465305fd35513e01a02cde048c0d93490332dc86610e89b09df1d7789d9d9994","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-4","para":"40-4","html":"
However, if the business or nonprofit activity to be disposed of was never integrated into the reporting unit after its acquisition and thus the benefits of the acquired goodwill were never realized by the rest of the reporting unit, the current carrying amount of that acquired goodwill shall be included in the carrying amount of the business or nonprofit activity to be disposed of.
","snippet":"However, if the business or nonprofit activity to be disposed of was never integrated into the reporting unit after its acquisition and thus the benefits of the acquired goodwill were never realized by the rest of the re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d4259aeea52ba721a91157d19169aa4010921c02d9de1e36f36a00d11e0be51","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-5","para":"40-5","html":"
That situation might occur when the acquired business or nonprofit activity is operated as a standalone entity or when the business or nonprofit activity is to be disposed of shortly after it is acquired.
","snippet":"That situation might occur when the acquired business or nonprofit activity is operated as a standalone entity or when the business or nonprofit activity is to be disposed of shortly after it is acquired.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:073ff5d28997bb2756a86980b01900009a27165a3eabde27e5f5c524b8c0c4c5","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-6","para":"40-6","html":"
Situations in which the acquired business or nonprofit activity is operated as a standalone entity are expected to be infrequent because some amount of integration generally occurs after an acquisition.
","snippet":"Situations in which the acquired business or nonprofit activity is operated as a standalone entity are expected to be infrequent because some amount of integration generally occurs after an acquisition.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05766c6ae5286d019d6f061a3efe701bc71a240d610fc5ccab585af7be25a4f1","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"citation":"350-20-40-7","para":"40-7","html":"
When only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of, the goodwill remaining in the portion of the reporting unit to be retained shall be tested for impairment in accordance with paragraphs
350-20-35-3A through 35-13
using its adjusted carrying amount.
","snippet":"When only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of, the goodwill remaining in the portion of the reporting unit to be retained shall be tested for impairment in accordance …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93dacb57e129c1a59d614d49f61dbe7a37888328be48d1b012b05d02e084457b","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c901fb79dc4c20b19d0da5b37469da911be8ca309bf32235ef2871562e01766e","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"block":"Accounting Alternatives","heading":null,"paragraphs":[{"citation":"350-20-40-8","para":"40-8","html":"
The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.
","snippet":"The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0840a4b6301c755e6148857d8a30460f034db8992f5dec3aaf77e82a4b65228","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c04367e7c3015cf801fd06ce5851f6808dce4d3aa07aa4998757ea732d74f4a","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"block":"Accounting Alternatives","heading":"Disposal of a Portion of an Entity (or a Reporting Unit)","paragraphs":[{"citation":"350-20-40-9","para":"40-9","html":"
When a portion of an entity (or a reporting unit) that constitutes a business or nonprofit activity is to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amount of the business or nonprofit activity in determining the gain or loss on disposal. An entity shall use a reasonable and rational approach to determine the amount of goodwill associated with the business or nonprofit activity to be disposed of.
","snippet":"When a portion of an entity (or a reporting unit) that constitutes a business or nonprofit activity is to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bdece50677911f9edc472b78178051692ef25ed838ec93eb107f476580fd99c4","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf6f800bdfede291e61f781dd970d4a7d601b661a20b45088ee8ecec2ae6b5c8","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4ad681847b9dff5beb34070cd2a9ff3d0360ac76e74358efe64ba0773e0e08c","downloaded_from":"2026-09-10T00:00:57.352Z","last_downloaded_at":"2026-09-10T00:00:57.352Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482622","source_sha256":"cec87eb93bf712273ba065be01d53e9d69a6b071b59163802737a9f84a20806c"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-20-45-1","para":"45-1","html":"
The aggregate amount of goodwill shall be presented as a separate line item in the statement of financial position.
","snippet":"The aggregate amount of goodwill shall be presented as a separate line item in the statement of financial position.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4cbbeca458afeac0c8074008befada8b9b22ac0b88e53734b23476fe6a1115d8","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"citation":"350-20-45-2","para":"45-2","html":"
The aggregate amount of goodwill impairment losses shall be presented as a separate line item in the income statement before the subtotal income from continuing operations (or similar caption) unless a goodwill impairment loss is associated with a discontinued operation.
","snippet":"The aggregate amount of goodwill impairment losses shall be presented as a separate line item in the income statement before the subtotal income from continuing operations (or similar caption) unless a goodwill impairmen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3fbe6d648e9545155745b894afa85a86cd07f605e9314ba89c15d927b913334","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"citation":"350-20-45-3","para":"45-3","html":"
A goodwill impairment loss associated with a discontinued operation shall be included (on a net-of-tax basis) within the results of discontinued operations. For guidance on reporting discontinued operations, see Subtopic 205-20.
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The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.
","snippet":"The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ff05cc13e74da82585e01e256e932f32627ddd4fed8e9180b3ee9afe652c447","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"citation":"350-20-45-5","para":"45-5","html":"
The aggregate amount of goodwill net of accumulated amortization and impairment shall be presented as a separate line item in the statement of financial position.
","snippet":"The aggregate amount of goodwill net of accumulated amortization and impairment shall be presented as a separate line item in the statement of financial position.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3d326c15155bf3b516fa12e0ebd8f0ecc890d510574c021406a4a82c880b301b","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"citation":"350-20-45-6","para":"45-6","html":"
The amortization and aggregate amount of impairment of goodwill shall be presented in income statement or statement of activities line items within continuing operations (or similar caption) unless the amortization or a goodwill impairment loss is associated with a discontinued operation.
","snippet":"The amortization and aggregate amount of impairment of goodwill shall be presented in income statement or statement of activities line items within continuing operations (or similar caption) unless the amortization or a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6354e81231d84a115013098e3d2f4236399955535ac76da4b71006747d218e36","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"citation":"350-20-45-7","para":"45-7","html":"
The amortization and impairment of goodwill associated with a discontinued operation shall be included (on a net-of-tax basis) within the results of discontinued operations.
","snippet":"The amortization and impairment of goodwill associated with a discontinued operation shall be included (on a net-of-tax basis) within the results of discontinued operations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:227f1f44763828360b5661d6d880c7d946c975197652cec5b934db9941edfd02","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b668a79efc1ab5d54557370ca4124b7cc65aa648f84c5ca114b1ec57223a282","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a9f93b2c8f9114c3f3e0fcee5133e6d0cdc82195e2a97a480dd47924eaedbbf","downloaded_from":"2026-09-10T00:00:59.231Z","last_downloaded_at":"2026-09-10T00:00:59.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482598","source_sha256":"94bf8bec547079c3970bb905e5dc970923e3f68ae31833f4fd99ca2035e32a85"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Information for Each Period for Which a Statement of Financial Position Is Presented","paragraphs":[{"citation":"350-20-50-1","para":"50-1","html":"
The changes in the carrying amount of goodwill during the period shall be disclosed, showing separately (see Example 3 [paragraph 350-20-55-24]):
  1. a
    The gross amount and accumulated impairment losses at the beginning of the period
  2. b
    Additional goodwill recognized during the period, except goodwill included in a disposal group that, on acquisition, meets the criteria to be classified as held for sale in accordance with paragraph 360-10-45-9
  3. c
    Adjustments resulting from the subsequent recognition of deferred tax assets during the period in accordance with paragraphs
    805-740-25-2 through 25-4
    and 805-740-45-2
  4. d
    Goodwill included in a disposal group classified as held for sale in accordance with paragraph 360-10-45-9 and goodwill derecognized during the period without having previously been reported in a disposal group classified as held for sale
  5. e
    Impairment losses recognized during the period in accordance with this Subtopic
  6. f
    Net exchange differences arising during the period in accordance with Topic 830
  7. g
    Any other changes in the carrying amounts during the period
  8. h
    The gross amount and accumulated impairment losses at the end of the period.
Entities that report segment information in accordance with Topic 280 shall provide the above information about goodwill in total and for each reportable segment and shall disclose any significant changes in the allocation of goodwill by reportable segment. If any portion of goodwill has not yet been allocated to a reporting unit at the date the financial statements are issued, that unallocated amount and the reasons for not allocating that amount shall be disclosed.
","snippet":"The changes in the carrying amount of goodwill during the period shall be disclosed, showing separately (see Example 3 [paragraph 350-20-55-24]):\n(a) The gross amount and accumulated impairment losses at the beginning of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0861d7ea71cb634eff70552cc77e0e9d6aa5920c81f345fbe056328714a8743f","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"citation":"350-20-50-1A","para":"50-1A","html":"
Entities that have one or more reporting units with zero or negative carrying amounts of net assets shall disclose those reporting units with allocated goodwill and the amount of goodwill allocated to each and in which reportable segment the reporting unit is included.
","snippet":"Entities that have one or more reporting units with zero or negative carrying amounts of net assets shall disclose those reporting units with allocated goodwill and the amount of goodwill allocated to each and in which r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f89681abf552e6eea261a5cce15968b5368d00974e9b29e8361aa89aee010868","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b75bfdbf2cd9a42a5cb3df57fbbcca17fff474939f9f208f53d375861d13ae4","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":null,"heading":"Goodwill Impairment Loss","paragraphs":[{"citation":"350-20-50-2","para":"50-2","html":"
For each goodwill impairment loss recognized, all of the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized:
  1. a
    A description of the facts and circumstances leading to the impairment
  2. b
    The amount of the impairment loss and the method of determining the fair value of the associated reporting unit (whether based on quoted market prices, prices of comparable businesses or nonprofit activities, a present value or other valuation technique, or a combination thereof)
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2017-04.
","snippet":"For each goodwill impairment loss recognized, all of the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized:\n(a) A descrip…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:344329aa8cb7f04e528da132a723952531be132019aced4350db8cf99f764595","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"citation":"350-20-50-3","para":"50-3","html":"
The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph 820-10-50-2(bbb) are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination.
","snippet":"The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph 820-10-50-2(bbb) are not required for fair v…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:871229ebe3ed9eb6d0e30cd7a415fe031f01a7beab9520dc5d1263e703c87465","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbc72af878360c5d69c013567bde57e393310b4999df417a7ffb51364559f0f7","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":"Accounting Alternatives","heading":null,"paragraphs":[{"citation":"350-20-50-3A","para":"50-3A","html":"
The information in paragraphs
350-20-50-4 through 50-7
shall be disclosed in the notes to financial statements for any entity within the scope of paragraph 350-20-15-4 that elects the accounting alternative for amortizing goodwill.
","snippet":"The information in paragraphs 350-20-50-4 through 50-7 shall be disclosed in the notes to financial statements for any entity within the scope of paragraph 350-20-15-4 that elects the accounting alternative for amortizin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3eb4460d676f8d107243556695fc0752864d7333c3bab2263631d38913fe5cb9","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"citation":"350-20-50-3B","para":"50-3B","html":"
An entity within the scope of paragraph 350-20-15-4A that elects the accounting alternative for a goodwill impairment triggering event evaluation shall disclose its use of the alternative as a significant accounting policy in accordance with paragraph 235-10-50-1.
","snippet":"An entity within the scope of paragraph 350-20-15-4A that elects the accounting alternative for a goodwill impairment triggering event evaluation shall disclose its use of the alternative as a significant accounting poli…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05479782039b8c60fc973a18d1d4c5dde7b03b65871c35ff13ad79e233e2450d","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0ca968607a46743ac9ee5c3deec0488d328bf8b5cb449e0424392a2ef86f1ae","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":"Accounting Alternatives","heading":"Disclosures about Additions to Goodwill","paragraphs":[{"citation":"350-20-50-4","para":"50-4","html":"
The following information shall be disclosed in the notes to financial statements for any additions to goodwill in each period for which a statement of financial position is presented:
  1. a
    The amount assigned to goodwill in total and by major business combination, by major acquisition by a not-for-profit entity, by joint venture formation, or by reorganization event resulting in fresh-start reporting
  2. b
    The weighted-average amortization period in total and the amortization period by major business combination, by major acquisition by a not-for-profit entity, by joint venture formation, or by reorganization event resulting in fresh-start reporting.
","snippet":"The following information shall be disclosed in the notes to financial statements for any additions to goodwill in each period for which a statement of financial position is presented:\n(a) The amount assigned to goodwill…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b05870ad1d8bdf9713c0737627c133b418f5278923bc80d5cf5a6afe378f2955","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5536f8d747e37a7958717fe37a99711ff5a30dab9b4ed91f0e1b2130fbd11a27","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":"Accounting Alternatives","heading":"Information for Each Period for Which a Statement of Financial Position Is Presented","paragraphs":[{"citation":"350-20-50-5","para":"50-5","html":"
The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial position is presented:
  1. a
    The gross carrying amounts of goodwill, accumulated amortization, and accumulated impairment loss
  2. b
    The aggregate amortization expense for the period
  3. c
    Goodwill included in a disposal group classified as held for sale in accordance with paragraph 360-10-45-9 and goodwill derecognized during the period without having previously been reported in a disposal group classified as held for sale.
","snippet":"The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial position is presented:\n(a) The gross carrying amounts of go…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b4ec47ebdb038e53dccdebd056f78f481a0c247886d93a57791b5c9dc7f5256","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b143b4aec9ad94fa039cc2389f6e0e9b7ad429d922b75dcb93fbee5db6c5c9e","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":"Accounting Alternatives","heading":"Goodwill Impairment Loss","paragraphs":[{"citation":"350-20-50-6","para":"50-6","html":"
For each goodwill impairment loss recognized, the following information shall be disclosed in the notes to financial statements that include the period in which the impairment loss is recognized:
  1. a
    A description of the facts and circumstances leading to the impairment
  2. b
    The amount of the impairment loss and the method of determining the fair value of the entity or the reporting unit (whether based on prices of comparable businesses or nonprofit activities, a present value or other valuation technique, or a combination of those methods)
  3. c
    The caption in the income statement or statement of activities in which the impairment loss is included
  4. d
    The method of allocating the impairment loss to the individual amortizable units of goodwill.
","snippet":"For each goodwill impairment loss recognized, the following information shall be disclosed in the notes to financial statements that include the period in which the impairment loss is recognized:\n(a) A description of the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3f87f4ba863e9f67a77613963d4dc10e1682c3ec0dfdcf001ee90683f724ed0","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"citation":"350-20-50-7","para":"50-7","html":"
The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph 820-10-50-2(bbb) are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination, an acquisition by not-for-profit entity, or a joint venture formation.
","snippet":"The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph 820-10-50-2(bbb) are not required for fair v…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff542de6f714cb4c8b4c41ec1690f0001ab39587f5654f0600d41337562f7a62","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d09aeca5cb3ffa97a759cbbeb0095751d230fbe1a8d070459d3b4a3204f5d1b","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a7a1d7b8c2fede0ad959474ca652e4e8a40c783cf859c8c5534ead2b9948ab2","downloaded_from":"2026-09-10T00:01:20.846Z","last_downloaded_at":"2026-09-10T00:01:20.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482573","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"350-20-55-1","para":"55-1","html":"
Determining whether a component of an operating segment is a reporting unit is a matter of judgment based on an entity's individual facts and circumstances. Although paragraphs
350-20-35-33 through 35-35
includes a number of characteristics that must be present for a component of an operating segment to be a reporting unit, no single factor or characteristic is determinative. How an entity manages its operations and how an acquired entity is integrated with the acquiring entity are key to determining the reporting units of the entity.
","snippet":"Determining whether a component of an operating segment is a reporting unit is a matter of judgment based on an entity's individual facts and circumstances. Although paragraphs 350-20-35-33 through 35-35 includes a numbe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c24e22c2e28bfe7f3242839f5f9fd323a1bbea0d8df9d9823a32594977c5b10","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-2","para":"55-2","html":"
The characteristics identified in paragraphs
350-20-35-33 through 35-35
that must be present for a component to be a reporting unit are discussed in the following implementation guidance.
","snippet":"The characteristics identified in paragraphs 350-20-35-33 through 35-35 that must be present for a component to be a reporting unit are discussed in the following implementation guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c97effb62428e76f00e905bc148fe18e19dfa405f5e1417e6ea89c1f52fb666","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-3","para":"55-3","html":"
The determination of whether a component constitutes a business or a nonprofit activity requires judgment based on specific facts and circumstances. The guidance in Section 805-10-55 should be considered in determining whether a group of assets constitutes a business or a nonprofit activity.
","snippet":"The determination of whether a component constitutes a business or a nonprofit activity requires judgment based on specific facts and circumstances. The guidance in Section 805-10-55 should be considered in determining w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7c6e07473ebce90c3aa5ca9eac5aa06803fd18ca28d23619b32e97acc3a888d","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-4","para":"55-4","html":"
The term discrete financial information should be applied in the same manner that it is applied in determining operating segments in accordance with paragraph 280-10-50-1. That guidance indicates that it is not necessary that assets be allocated for a component to be considered an operating segment (that is, no balance sheet is required). Thus, discrete financial information can constitute as little as operating information. Therefore, in order to test goodwill for impairment in accordance with this Subtopic, an entity may be required to assign assets and liabilities to reporting units (consistent with the guidance in paragraphs
350-20-35-39 through 35-40
).
","snippet":"The term discrete financial information should be applied in the same manner that it is applied in determining operating segments in accordance with paragraph 280-10-50-1. That guidance indicates that it is not necessary…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c9c921c79be12f3d8587d0cfc956c6cc4a11d44a20ddf9a2bfc25d136c674d4a","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-5","para":"55-5","html":"
Segment management, as defined in paragraphs
280-10-50-7 through 50-8
, is either a level below or the same level as the chief operating decision maker. According to Topic 280, a segment manager is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. The approach used in this Subtopic to determine reporting units is similar to the one used to determine operating segments; however, this Subtopic focuses on how operating segments are managed rather than how the entity as a whole is managed; that is, reporting units should reflect the way an entity manages its operations.
","snippet":"Segment management, as defined in paragraphs 280-10-50-7 through 50-8, is either a level below or the same level as the chief operating decision maker. According to Topic 280, a segment manager is directly accountable to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d19d7e7571b7c0e1112d2017af66a6929bbbafcac33dd723bf2c39b79be12b70","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-6","para":"55-6","html":"
Evaluating whether two components have similar economic characteristics is a matter of judgment that depends on specific facts and circumstances. That assessment should be more qualitative than quantitative.
","snippet":"Evaluating whether two components have similar economic characteristics is a matter of judgment that depends on specific facts and circumstances. That assessment should be more qualitative than quantitative.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64130bd2a4de7e48511a6e6fb9a1f238ae4c503803a7b8db10003883253ed8b4","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-7","para":"55-7","html":"
In determining whether the components of an operating segment have similar economic characteristics, all of the factors in paragraph 280-10-50-11 should be considered. However, every factor need not be met in order for two components to be considered economically similar. In addition, the determination of whether two components are economically similar need not be limited to consideration of the factors described in that paragraph. In determining whether components should be combined into one reporting unit based on their economic similarities, factors that should be considered in addition to those in that paragraph include but are not limited to, the following:
  1. a
    The manner in which an entity operates its business or nonprofit activity and the nature of those operations
  2. b
    Whether goodwill is recoverable from the separate operations of each component business (or nonprofit activity) or from two or more component businesses (or nonprofit activities) working in concert (which might be the case if the components are economically interdependent)
  3. c
    The extent to which the component businesses (or nonprofit activities) share assets and other resources, as might be evidenced by extensive transfer pricing mechanisms
  4. d
    Whether the components support and benefit from common research and development projects.
The fact that a component extensively shares assets and other resources with other components of the operating segment may be an indication that the component either is not a business or nonprofit activity or it may be economically similar to those other components.
","snippet":"In determining whether the components of an operating segment have similar economic characteristics, all of the factors in paragraph 280-10-50-11 should be considered. However, every factor need not be met in order for t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de6317634de6be1bdfd8b59ab7f8268e7acbee5cc5a3e2813fee19591c1bb13f","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-8","para":"55-8","html":"
Components that share similar economic characteristics but relate to different operating segments may not be combined into a single reporting unit. For example, an entity might have organized its operating segments on a geographic basis. If its three operating segments (Americas, Europe, and Asia) each have two components (A and B) that are dissimilar to each other but similar to the corresponding components in the other operating segments, the entity would not be permitted to combine component A from each of the operating segments to make reporting unit A.
","snippet":"Components that share similar economic characteristics but relate to different operating segments may not be combined into a single reporting unit. For example, an entity might have organized its operating segments on a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8bdf5cea635c0c680b7c652d2638ebb11400f400387833d3e8e0a36ad893d557","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-9","para":"55-9","html":"
If two operating segments have been aggregated into a reportable segment by applying the aggregation criteria in paragraph 280-10-50-11, it would be possible for one or more of those components to be economically dissimilar from the other components and thus be a reporting unit for purposes of testing goodwill for impairment. That situation might occur if an entity's operating segments are based on geographic areas. The following points need to be considered in addressing this circumstance:
  1. a
    The determination of reporting units under this Subtopic begins with the definition of an operating segment in paragraph 280-10-50-1 and considers disaggregating that operating segment into economically dissimilar components for the purpose of testing goodwill for impairment. The determination of reportable segments under Topic 280 also begins with an operating segment, but considers whether certain economically similar operating segments should be aggregated into a single operating segment or into a reportable segment.
  2. b
    The level at which operating performance is reviewed differs between this Subtopic and Topic 280. It is the chief operating decision maker who reviews operating segments and the segment manager who reviews reporting units (components of operating segments). Therefore, a component of an operating segment would not be considered an operating segment for purposes of that Topic unless the chief operating decision maker regularly reviews its operating performance; however, that same component might be a reporting unit under this Subtopic if a segment manager regularly reviews its operating performance (and if other reporting unit criteria are met).
","snippet":"If two operating segments have been aggregated into a reportable segment by applying the aggregation criteria in paragraph 280-10-50-11, it would be possible for one or more of those components to be economically dissimi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f398a1175401c159ddde672f29cd18e35d4147a33872b63c66b6c86f7f9734ed","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41d816a3a13cc82cc4d3e94c175a4a2c0f5db81badcf04da5ee41bca8123dd62","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"350-20-55-10","para":"55-10","html":"
This Example illustrates the effect of a nontaxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporting unit or the relationship of those liabilities in a taxable versus nontaxable structure.
","snippet":"This Example illustrates the effect of a nontaxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a1e7e3254689750f32064bce88a54edbf20e572208b30593b0e702d649c24c0","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-11","para":"55-11","html":"
Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities:
  1. a
    Net assets (excluding goodwill and deferred income taxes) of $60 with a tax basis of $35
  2. b
    Goodwill of $40
  3. c
    Net deferred tax liabilities of $10.
","snippet":"Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities:\n(a) Net assets (excluding goodwill and deferred income taxes) of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a8c13a0e6704e37e346706d39c440f0a05747981e2be26996817f167569ca91","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-12","para":"55-12","html":"
Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $80 in a nontaxable transaction or $90 in a taxable transaction. If Reporting Unit were sold in a nontaxable transaction, Entity A would have a current tax payable resulting from the sale of $10. Assuming a tax rate of 40 percent, if Reporting Unit were sold in a taxable transaction, Entity A would have a current tax payable resulting from the sale of $22 ([$90 - 35] × 40%).
","snippet":"Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $80 in a nontaxable transaction or $90 in a taxable transaction. If Rep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c9464e243b9e3cd737683e5c7d6e4cbad48ed1f83e32fefa3bf77773175aa4c","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-13","para":"55-13","html":"
In the quantitative impairment test in paragraphs
350-20-35-4 through 35-8
, Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a nontaxable transaction based on the following evaluation of its expected after-tax proceeds.
","snippet":"In the quantitative impairment test in paragraphs 350-20-35-4 through 35-8, Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a nontaxable transaction base…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5bb8624b8f4c66b12806997c32fa63377efb29733db2d1b21bde0a71f4ad651","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-14","para":"55-14","html":"
In the quantitative impairment test, Entity A would determine the carrying amount of Reporting Unit as follows.
","snippet":"In the quantitative impairment test, Entity A would determine the carrying amount of Reporting Unit as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10d3f431c38a27ba9fa0e6c0a5f6616e3e024dd5a97fd234b766ee0c05437753","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-15","para":"55-15","html":"
The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying value ($90) exceeds its fair value ($80 assuming a nontaxable transaction).
","snippet":"The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying value ($90) exceeds its fair value ($80 assuming a nontaxable transaction).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:313c8698de6a1a58f15bef2694153a672fbede6614b27d3792da3e379b1c47e0","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-16","para":"55-16","html":"
Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does not exceed the $40 carrying amount of the goodwill allocated to Reporting Unit.
","snippet":"Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4d3b056f2b3dbe948f4842f3300cf24d1ade5be2eaacac3cf761d8b51b193fb","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-17","para":"55-17","html":"
This Example illustrates the effect of a taxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporting unit or the relationship of those liabilities in a taxable versus nontaxable structure.
","snippet":"This Example illustrates the effect of a taxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporting …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:004f39ec8da6b76d4488a5e87ada62b9f4461238910f423737aec306de13d46a","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-18","para":"55-18","html":"
Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities:
  1. a
    Net assets (excluding goodwill and deferred income taxes) of $60 with a tax basis of $35
  2. b
    Goodwill of $40
  3. c
    Net deferred tax liabilities of $10.
","snippet":"Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities:\n(a) Net assets (excluding goodwill and deferred income taxes) of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:469f82255ebf452d2e83a8e5cf66a4690435e6258196a83946e47392271a3187","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-19","para":"55-19","html":"
Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $65 in a nontaxable transaction or $80 in a taxable transaction. If Reporting Unit were sold in a nontaxable transaction, Entity A would have a current tax payable resulting from the sale of $4. Assuming a tax rate of 40 percent, if Reporting Unit were sold in a taxable transaction, Entity A would have a current tax payable resulting from the sale of $18 ([$80 - 35] × 40%).
","snippet":"Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $65 in a nontaxable transaction or $80 in a taxable transaction. If Rep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a76087d371c75f0c30d7affea21125c8266749f2a631e74945d0212cc7b26249","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-20","para":"55-20","html":"
In the quantitative impairment test in paragraphs
350-20-35-4 through 35-8
, Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a taxable transaction. This conclusion was based on the following.
","snippet":"In the quantitative impairment test in paragraphs 350-20-35-4 through 35-8, Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a taxable transaction. This c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df090184be2cc01447e0301a756d430cc9efd2cf679fa8cbee5abb5a953e5fbb","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-21","para":"55-21","html":"
Deferred taxes related to the net assets of Reporting Unit should be included in the carrying value of Reporting Unit. Accordingly, in the quantitative impairment test Entity A would determine the carrying amount of Reporting Unit as follows.
","snippet":"Deferred taxes related to the net assets of Reporting Unit should be included in the carrying value of Reporting Unit. Accordingly, in the quantitative impairment test Entity A would determine the carrying amount of Repo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ad2d7f50f15074887e319ac1ef3647bb77db496ff6254b425b06dbb4aed9c4c4","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-22","para":"55-22","html":"
The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying amount ($90) exceeds its fair value ($80).
","snippet":"The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying amount ($90) exceeds its fair value ($80).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9452dd1c7089d36e5aaef9ee4851723f4d3f2cf63e1e0eef7e07cf5fe21fbd4","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-23","para":"55-23","html":"
Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does not exceed the $40 carrying amount of the goodwill allocated to Reporting Unit.
","snippet":"Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3512141be786ee8b50fc7b69847feaa7bed8bf702e52f295414dba72631edff","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-23A","para":"55-23A","html":"
Goodwill is deductible for tax purposes for some business combinations in certain jurisdictions. In those jurisdictions, a deferred tax asset or deferred tax liability is recorded upon acquisition on the basis of the difference between the book basis and the tax basis of goodwill. When goodwill of a reporting unit is tax deductible, the impairment of goodwill creates a cycle of impairment because the decrease in the book value of goodwill increases the deferred tax asset (or decreases the deferred tax liability) such that the carrying amount of the reporting unit increases. However, there is no corresponding increase in the fair value of the reporting unit and this could trigger another impairment test.
","snippet":"Goodwill is deductible for tax purposes for some business combinations in certain jurisdictions. In those jurisdictions, a deferred tax asset or deferred tax liability is recorded upon acquisition on the basis of the dif…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15c11e0aa30e0ff167a16c633e3419647f3f44beb0653c22cce979968efdb574","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-23B","para":"55-23B","html":"
This Example illustrates the use of a simultaneous equation when tax deductible goodwill is present to account for the increase in the carrying amount from the deferred tax benefit.
","snippet":"This Example illustrates the use of a simultaneous equation when tax deductible goodwill is present to account for the increase in the carrying amount from the deferred tax benefit.\nBeta Entity has goodwill from an acqui…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56c960651842296aeb90a21b1b6c0bc5e53bfd2f3b6fdc92322c49766c04b575","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-23C","para":"55-23C","html":"
In the Example above, the carrying amount of Reporting Unit X immediately after the impairment charge exceeds its fair value by the amount of the increase in the deferred tax asset calculated as 40 percent of the impairment charge. To address the circular nature of the carrying amount exceeding the fair value, instead of continuing to calculate impairment on the excess of carrying amount over fair value until those amounts are equal, Beta Entity would apply the simultaneous equation demonstrated in paragraphs
805-740-55-9 through 55-13
to Reporting Unit X, as follows.
","snippet":"In the Example above, the carrying amount of Reporting Unit X immediately after the impairment charge exceeds its fair value by the amount of the increase in the deferred tax asset calculated as 40 percent of the impairm…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10c9b594a667984165484b2de494602f9f68b39b4632db96a1a48ad66592ed12","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-23D","para":"55-23D","html":"
The company would report a $167 goodwill impairment charge partially offset by a $67 deferred tax benefit recognized in the income tax line. If the impairment charge calculated using the equation exceeds the total goodwill allocated to a reporting unit, the total impairment charge would be limited to the goodwill amount.
","snippet":"The company would report a $167 goodwill impairment charge partially offset by a $67 deferred tax benefit recognized in the income tax line. If the impairment charge calculated using the equation exceeds the total goodwi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:136802fade6ce969afee8db1d34a82d4bb67c8a3b34c99577d1cfdcba4c1ed99","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-24","para":"55-24","html":"
In accordance with paragraphs
350-20-50-1 through 50-2
, the following disclosures would be made by Theta Entity in its December 31, 20X3 financial statements relating to goodwill.
","snippet":"In accordance with paragraphs 350-20-50-1 through 50-2, the following disclosures would be made by Theta Entity in its December 31, 20X3 financial statements relating to goodwill.\nTheta Entity has three reporting units w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49cdc10b0cc57d28c5d01f17593af11fa4366e8f623a3a98e0fe7d4863f2bea3","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-25","para":"55-25","html":"
The flowchart in this Example illustrates the optional qualitative assessment and the quantitative goodwill impairment test described in paragraphs
350-20-35-3A through 35-13
. Note:
  1. 1
    An entity has the unconditional option to skip the qualitative assessment and proceed directly to calculating the fair value of the reporting unit and comparing that value with its carrying amount, including goodwill.
","snippet":"The flowchart in this Example illustrates the optional qualitative assessment and the quantitative goodwill impairment test described in paragraphs 350-20-35-3A through 35-13.\nNote:\n(1) An entity has the unconditional op…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93a427dcf03177fa1017103a63af4c61c80b2e3343f2c0a46e1e20f384ef65aa","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9574cde3582c8883e72aef9958ebabc5534eee32372d90957630ac72640395e6","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"block":"Accounting Alternatives","heading":"Implementation Guidance","paragraphs":[{"citation":"350-20-55-26","para":"55-26","html":"
The following flowchart provides an overview of the accounting alternative for amortizing goodwill for entities within the scope of paragraph 350-20-15-4.Note 1:
","snippet":"The following flowchart provides an overview of the accounting alternative for amortizing goodwill for entities within the scope of paragraph 350-20-15-4.\nNote 1:\nAn entity has the unconditional option to skip the qualit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:305faf7243abae1cac18b7e7d80d8aa10f8504cd571970419be7bb7680a1b47d","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:674228429060f565eea3b570af25d95a4d94e9b0682c1bfb0b9702cadc096ae6","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"block":"Accounting Alternatives","heading":"Illustrations","paragraphs":[{"citation":"350-20-55-27","para":"55-27","html":"
This Example illustrates the effect of the accounting alternative for a goodwill impairment triggering event evaluation on the impairment conclusion for an entity within the scope of paragraph 350-20-15-4A. This Example is not indicative of every outcome that may occur because facts and circumstances surrounding triggering events are unique to each entity.
","snippet":"This Example illustrates the effect of the accounting alternative for a goodwill impairment triggering event evaluation on the impairment conclusion for an entity within the scope of paragraph 350-20-15-4A. This Example …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8fe13c0c87b41af09c72436453e573ab3a3c26e688504454543f311b7fb849e1","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-28","para":"55-28","html":"
Entity A adopted the accounting alternative for a goodwill impairment triggering event evaluation and performs a goodwill impairment triggering event evaluation only as of the end of each reporting period. Entity A also adopted the accounting alternative for amortizing goodwill in accordance with paragraph 350-20-05-5 and elected to perform an impairment test for goodwill at the entity level upon the occurrence of a triggering event only. During the second quarter, Entity A lost a significant customer. However, Entity A was able to replace that customer late in the third quarter of the same year, and the entity's operations returned to previously forecasted levels by the annual reporting date.
","snippet":"Entity A adopted the accounting alternative for a goodwill impairment triggering event evaluation and performs a goodwill impairment triggering event evaluation only as of the end of each reporting period. Entity A also …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2a77c8a7e0220d498c4655402fe3cb515832100abf112ee918a4ddd91828a9e","downloaded_from":"2026-09-10T00:01:23.951Z","last_downloaded_at":"2026-09-10T00:01:23.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482548","source_sha256":"ca9626a1a7377fb07f27fba896c7825d35d2dbb3f234763082ba6c65753c4251"}},{"citation":"350-20-55-29","para":"55-29","html":"
If Entity A reports only annually, then it would evaluate the facts and circumstances as of the annual reporting date and may conclude that no triggering event exists; therefore, no further goodwill impairment testing would be necessary. Alternatively, if Entity A reports on both a quarterly basis and an annual basis, then it would evaluate the facts and circumstances as of the end of each quarter and may conclude that the loss of the significant customer represents a goodwill impairment triggering event requiring additional impairment testing as of the end of the second quarter.
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Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment.
","snippet":"Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:007a277cc57b09dc15bd122271920b8238901abc333cbeef30800a8f0df88c7e","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7687c988da2f1cdddc1833614f5cec9a0fd45751f901f2fc7ea9d3c49e8ec956","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}},{"block":null,"heading":"Transition Related to Accounting Standards Updates No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, No. 2019-06, Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, and No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events","paragraphs":[{"citation":"350-20-65-2","para":"65-2","html":"
The following represents the transition information related to Accounting Standards Updates No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, No. 2019-06, Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, and No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events referenced in paragraph 350-20-15-3A:
  1. a
    Upon adoption of the guidance for the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of this Subtopic and the guidance in paragraph 323-10-35-13, that guidance shall be effective prospectively for new goodwill recognized after the adoption of that guidance. For existing goodwill, that guidance shall be effective as of the beginning of the first fiscal year in which the accounting alternative is adopted.
  2. b
    Goodwill existing as of the beginning of the period of adoption shall be amortized prospectively on a straight-line basis over 10 years, or less than 10 years if an entity demonstrates that another useful life is more appropriate.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2016-03.
  4. d
    Upon adoption of the accounting alternative for amortizing goodwill, an entity shall make an accounting policy election to test goodwill for impairment at either the entity level or the reporting unit level.
  5. e
    A private company or not-for-profit entity that makes an accounting policy election to apply the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of this Subtopic for the first time need not justify that the use of the accounting alternative is preferable as described in paragraph 250-10-45-2.
","snippet":"The following represents the transition information related to Accounting Standards Updates No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, No. 2019-06, Intangibles—Goodwill and Other (T…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5361ff390dba6c95d32c769bf4543997e55ce3aff473dc4c0d331d76b1aa7068","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}},{"citation":"350-20-65-3","para":"65-3","html":"
Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates, and No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events.
","snippet":"Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, No. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7e987711557a6542b1c1932ce7658c5187c8b2394c7973c5313e662ba9a0e22","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ce93cd971c907dd22978ff54d510f694044d1798e83720a47cac90958fe5212","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}},{"block":null,"heading":"Transition Related to Accounting Standards Update No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events","paragraphs":[{"citation":"350-20-65-4","para":"65-4","html":"
The following represents the transition and effective date information related to Accounting Standards Update No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events:
  1. a
    The pending content that links to this paragraph shall be effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance as of March 30, 2021. A private company or not-for-profit entity that adopts the pending content that links to this paragraph shall apply it as of the beginning of the interim or annual period for financial statements that have not yet been issued or made available for issuance in the year of adoption. A private company or not-for-profit entity shall not retroactively adopt the pending content that links to this paragraph as of the beginning of an annual period for which interim-period financial statements have already been issued in the year of adoption.
  2. b
    For a private company or not-for-profit entity that adopts the pending content that links to this paragraph after its original effective date, that pending content shall be applied prospectively as of the beginning of the first reporting period in which the accounting alternative is adopted.
  3. c
    A private company or not-for-profit entity that makes an accounting policy election to apply the pending content that links to this paragraph for the first time need not justify that the use of the accounting alternative is preferable as described in paragraph 250-10-45-2.
","snippet":"The following represents the transition and effective date information related to Accounting Standards Update No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Even…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a576ac97bd65f5b1750b1f255f482e7eae76b4258e0ca1997b69da7e319c9878","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f43d379b3f0253333a2de7c3515dea0cd9a1fc7f0357b74c5438e5a3f393381","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9112ab635d33e316ba70a2045c296ab900ae42874257c4a07eac37113b686b66","downloaded_from":"2026-09-10T00:01:25.713Z","last_downloaded_at":"2026-09-10T00:01:25.713Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482712","source_sha256":"28e6203930c2eda5b11d7b0510b0954c6021e64ca57b48661de613ec6e6770d1"}}],"enrichment":{"summary":"ASC 350-20 governs the accounting for goodwill after its initial recognition (initial recognition/measurement is in 805-30, 805-60, or 958-805) and prohibits capitalizing internally developed goodwill. Under the general model, goodwill is not amortized but is tested for impairment at least annually at the reporting unit level, with an optional qualitative \"more likely than not\" screen; if the quantitative test shows the reporting unit's carrying amount exceeds its fair value, a loss is recognized for that excess, capped at the goodwill allocated to the unit. Private companies and not-for-profit entities may elect accounting alternatives to amortize goodwill over 10 years or less and to test only upon a triggering event, and/or to evaluate triggering events only as of the end of each reporting period.","key_points":["Goodwill shall not be amortized under the general model; it must be tested for impairment at least annually at the reporting unit level and between annual tests if an event makes it more likely than not that a reporting unit's fair value has fallen below its carrying amount (350-20-35-1; 35-28; 35-30); costs of internally developing goodwill are expensed as incurred (350-20-25-3).","An entity may first perform an optional qualitative assessment of the events and circumstances listed in 350-20-35-3C(a) through (g) to decide whether the quantitative test is needed, and has an unconditional option to bypass it and go straight to the quantitative test (350-20-35-3A through 35-3B).","The quantitative test compares the reporting unit's fair value with its carrying amount, including goodwill; if carrying amount exceeds fair value, an impairment loss equal to that excess is recognized, limited to the total goodwill allocated to the reporting unit, with a simultaneous-equation adjustment where goodwill is tax deductible (350-20-35-4; 35-8; 35-8B).","Deferred income taxes are included in the reporting unit's carrying amount regardless of whether fair value assumes a taxable or nontaxable sale, and the entity must judge which assumption market participants would use (350-20-35-7; 35-25 through 35-27).","After a goodwill impairment loss, the adjusted carrying amount is the new accounting basis and reversal of the loss is prohibited; other assets or asset groups tested at the same time are tested before goodwill (350-20-35-12 through 35-13; 35-31).","Reporting units are determined using Topic 280: a component of an operating segment is a reporting unit if it is a business (or nonprofit activity) with discrete financial information regularly reviewed by segment management, and economically similar components must be aggregated (350-20-35-33 through 35-36).","Private companies and NFPs may elect to amortize goodwill straight-line over 10 years or less and test at the entity or reporting unit level only upon a triggering event, and/or to evaluate triggering events only as of the end of each reporting period (350-20-15-4; 35-63; 35-65 through 35-66; 35-84)."],"categories":["Impairment","Intangibles and goodwill","Subsequent measurement","Disclosure"],"audience_level":"intermediate","student_note":"Exam questions almost always test the post-ASU 2017-04 single-step measurement: the loss equals carrying amount minus fair value of the reporting unit, capped at that unit's goodwill — there is no longer a Step 2 \"implied fair value of goodwill\" computation. Common misunderstandings are forgetting the goodwill cap, excluding deferred taxes from the reporting unit's carrying amount, and thinking impairment losses can later be reversed.","related_topics":["805-30","958-805","805-60","350-30","280-10","323-10"],"key_concepts":["goodwill","reporting unit","annual impairment test","qualitative assessment","more likely than not","goodwill amortization accounting alternative","triggering event evaluation","relative fair value allocation"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68f638be88c6e562a2c9fda3ce7a1b244dd0301a646dadb248601f9fab7dc928","downloaded_from":"2026-09-10T00:00:39.885Z","last_downloaded_at":"2026-09-10T00:01:29.561Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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