# ASC 350-20: Intangibles—Goodwill and Other — Goodwill

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/350/20/)

Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:01:29.561Z

Record version: sha256:37283bac90deed7dda336e076a16b00b942c833b4a80465d1864f41a7ef0d718

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20: Intangibles—Goodwill and Other — Goodwill

### Machine-generated study aids

```json
{
  "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"
  ]
}
```

Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:00:39.885Z

Record version: sha256:55bbf1a03209f7f7afff394aa5d2f8399bdc045d4e80bd21aec8e46152228c1c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/350/20/#00-status)

SEC content: no

##### [350-20-00-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-00-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:00:39.885Z

Record version: sha256:f65d5d587226b284197a9abb56a298b1d9006bd6605e77ed171733ef0c945994

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following table identifies the changes made to this Subtopic.

<table class="asc-table" id="SL6797617-128417"><tbody><tr><td class="entry"><strong class="ph b">Paragraph</strong></td><td class="entry"><strong class="ph b">Action</strong></td><td class="entry"><strong class="ph b">Accounting Standards Update</strong></td><td class="entry"><strong class="ph b">Date</strong></td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/a/#acquirer" class="term" title="The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer."><span>Acquirer</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-03/" class="xref">Accounting Standards Update No. 2025-03</a></td><td class="entry">05/12/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity" class="term" title="A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."><span>Acquisition by a Not-for-Profit Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/b/#business" class="term" title="Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business."><span>Business</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-01/" class="xref">Accounting Standards Update No. 2017-01</a></td><td class="entry">01/05/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/c/#corporate-joint-venture" class="term" title="A corporation owned and operated by a small group of entities (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a corporate joint venture frequently is to share risks and rewards in developing a new market, product or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A corporate joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a corporate joint venture. The ownership of a corporate joint venture seldom changes, and its stock is usually not traded publicly. A noncontrolling interest held by public ownership, however, does not preclude a corporation from being a corporate joint venture."><span>Corporate Joint Venture</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#formation-date" class="term" title="The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction."><span>Formation Date</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/g/#goodwill" class="term" title="An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29."><span>Goodwill</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/g/#goodwill" class="term" title="An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29."><span>Goodwill</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/j/#joint-venture" class="term" title="An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities."><span>Joint Venture</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity" class="term" title="An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity."><span>Nonprofit Activity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity" class="term" title="An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans."><span>Not-for-Profit Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#private-company" class="term" title="An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting."><span>Private Company</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/asc-pdf/GUID-86B34FCD-7B0A-4349-8682-E212043FD47A.pdf" class="pdf-link" target="_blank" rel="noopener">Maintenance Update 2017-06 (PDF)</a></td><td class="entry">04/07/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/asc-pdf/GUID-8C0B93FE-237A-4BFA-8880-FE749B3CAFCB.pdf" class="pdf-link" target="_blank" rel="noopener">Maintenance Update 2016-11 (PDF)</a></td><td class="entry">06/27/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/s/#securities-and-exchange-commission-sec-filer" class="term" title="An entity that is required to file or furnish its financial statements with either of the following: The Securities and Exchange Commission (SEC) With respect to an entity subject to Section 12(i) of the Securities Exchange Act of 1934, as amended, the appropriate agency under that Section. Financial statements for other entities that are not otherwise SEC filers whose financial statements are included in a submission by another SEC filer are not included within this definition."><span>Securities and Exchange Commission (SEC) Filer</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><strong class="ph b">Variable Interest Entity</strong></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-03/" class="xref">Accounting Standards Update No. 2025-03</a></td><td class="entry">05/12/2025</td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-1" class="xref">350-20-05-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-2" class="xref">350-20-05-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-2" class="xref">350-20-05-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-3" class="xref">350-20-05-3</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4" class="xref">350-20-05-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4" class="xref">350-20-05-4 through 05-6</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4A" class="xref">350-20-05-4A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4A" class="xref">350-20-05-4A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4A" class="xref">350-20-05-4A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4B" class="xref">350-20-05-4B</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5" class="xref">350-20-05-5 through 05-6</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5" class="xref">350-20-05-5</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5A" class="xref">350-20-05-5A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2" class="xref">350-20-15-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2" class="xref">350-20-15-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2A" class="xref">350-20-15-2A</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3" class="xref">350-20-15-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A" class="xref">350-20-15-3A through 15-5</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A" class="xref">350-20-15-3A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A" class="xref">350-20-15-3A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-03/" class="xref">Accounting Standards Update No. 2016-03</a></td><td class="entry">03/07/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4" class="xref">350-20-15-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4" class="xref">350-20-15-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4" class="xref">350-20-15-4</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A" class="xref">350-20-15-4A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-5" class="xref">350-20-15-5</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-15-6" class="xref">350-20-15-6</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-25-1" class="xref">350-20-25-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-25-1" class="xref">350-20-25-1</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-1" class="xref">350-20-35-1 through 35-3</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3" class="xref">350-20-35-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A" class="xref">350-20-35-3A through 35-3G</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3B" class="xref">350-20-35-3B</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3D" class="xref">350-20-35-3D through 35-4</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-6" class="xref">350-20-35-6</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-6" class="xref">350-20-35-6</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-28/" class="xref">Accounting Standards Update No. 2010-28</a></td><td class="entry">12/17/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-7" class="xref">350-20-35-7</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-28/" class="xref">Accounting Standards Update No. 2010-28</a></td><td class="entry">12/17/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8" class="xref">350-20-35-8</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A" class="xref">350-20-35-8A through 35-11</a></div></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A" class="xref">350-20-35-8A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A" class="xref">350-20-35-8A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-28/" class="xref">Accounting Standards Update No. 2010-28</a></td><td class="entry">12/17/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B" class="xref">350-20-35-8B</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-14" class="xref">350-20-35-14 through 35-21</a></div></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-14" class="xref">350-20-35-14</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-25" class="xref">350-20-35-25</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-25" class="xref">350-20-35-25</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-26" class="xref">350-20-35-26</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-29" class="xref">350-20-35-29</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30" class="xref">350-20-35-30</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30" class="xref">350-20-35-30</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30" class="xref">350-20-35-30</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-28/" class="xref">Accounting Standards Update No. 2010-28</a></td><td class="entry">12/17/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-34" class="xref">350-20-35-34</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39A" class="xref">350-20-35-39A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41" class="xref">350-20-35-41</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-45" class="xref">350-20-35-45</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-48" class="xref">350-20-35-48</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-51" class="xref">350-20-35-51</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52" class="xref">350-20-35-52 through 35-57</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#35-subsequent-measurement" class="xref">350-20-35-57</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57A" class="xref">350-20-35-57A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57A" class="xref">350-20-35-57A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-60" class="xref">350-20-35-60</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62" class="xref">350-20-35-62</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62" class="xref">350-20-35-62 through 35-82</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63" class="xref">350-20-35-63</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63" class="xref">350-20-35-63</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63" class="xref">350-20-35-63</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-65" class="xref">350-20-35-65 through 35-67</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-73" class="xref">350-20-35-73</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-79" class="xref">350-20-35-79</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-81" class="xref">350-20-35-81</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83" class="xref">350-20-35-83 through 35-86</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1" class="xref">350-20-40-1 through 40-7</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-2" class="xref">350-20-40-2 through 40-7</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7" class="xref">350-20-40-7</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8" class="xref">350-20-40-8</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8" class="xref">350-20-40-8</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-9" class="xref">350-20-40-9</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-40-9" class="xref">350-20-40-9</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-45-3" class="xref">350-20-45-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-19/" class="xref">Accounting Standards Update No. 2016-19</a></td><td class="entry">12/14/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4" class="xref">350-20-45-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4" class="xref">350-20-45-4 through 45-7</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-45-6" class="xref">350-20-45-6</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1A" class="xref">350-20-50-1A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-2" class="xref">350-20-50-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-2" class="xref">350-20-50-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3" class="xref">350-20-50-3</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A" class="xref">350-20-50-3A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3B" class="xref">350-20-50-3B</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4" class="xref">350-20-50-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4" class="xref">350-20-50-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4" class="xref">350-20-50-4</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4" class="xref">350-20-50-4 through 50-7</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-6" class="xref">350-20-50-6</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-7" class="xref">350-20-50-7</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2023-05/" class="xref">Accounting Standards Update No. 2023-05</a></td><td class="entry">08/23/2023</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-50-7" class="xref">350-20-50-7</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-3" class="xref">350-20-55-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-7" class="xref">350-20-55-7</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2010-07/" class="xref">Accounting Standards Update No. 2010-07</a></td><td class="entry">01/28/2010</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10" class="xref">350-20-55-10</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-12" class="xref">350-20-55-12 through 55-17</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-13" class="xref">350-20-55-13</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-19" class="xref">350-20-55-19 through 55-26</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-20" class="xref">350-20-55-20</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2012-04/" class="xref">Accounting Standards Update No. 2012-04</a></td><td class="entry">10/01/2012</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A" class="xref">350-20-55-23A through 55-23D</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-25" class="xref">350-20-55-25</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26" class="xref">350-20-55-26</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26" class="xref">350-20-55-26</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-55-27" class="xref">350-20-55-27 through 55-29</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-1" class="xref">350-20-65-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2011-08/" class="xref">Accounting Standards Update No. 2011-08</a></td><td class="entry">09/15/2011</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2" class="xref">350-20-65-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2" class="xref">350-20-65-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-06/" class="xref">Accounting Standards Update No. 2019-06</a></td><td class="entry">05/30/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2" class="xref">350-20-65-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2016-03/" class="xref">Accounting Standards Update No. 2016-03</a></td><td class="entry">03/07/2016</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2" class="xref">350-20-65-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2014-02/" class="xref">Accounting Standards Update No. 2014-02</a></td><td class="entry">01/16/2014</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3" class="xref">350-20-65-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3" class="xref">350-20-65-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2019-10/" class="xref">Accounting Standards Update No. 2019-10</a></td><td class="entry">11/15/2019</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3" class="xref">350-20-65-3</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/asc-pdf/GUID-9955297D-EC26-4195-B153-D7861728A42E.pdf" class="pdf-link" target="_blank" rel="noopener">Maintenance Update 2017-04 (PDF)</a></td><td class="entry">03/06/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3" class="xref">350-20-65-3</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2017-04/" class="xref">Accounting Standards Update No. 2017-04</a></td><td class="entry">01/26/2017</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/350/20/#350-20-65-4" class="xref">350-20-65-4</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-03/" class="xref">Accounting Standards Update No. 2021-03</a></td><td class="entry">03/30/2021</td></tr></tbody></table>

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:809492275a3e42e646b83bec24433534571dffe819cb38276f3de553f068dc78

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/350/20/#05-overview-and-background)

SEC content: no

##### [350-20-05-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:ccabf1b89c315c3a1bb1c01cafca0dee0181ea155fb9266f9d896e502cb9d996

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic addresses financial accounting and reporting for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") subsequent to its acquisition and for the cost of internally developing goodwill.

##### [350-20-05-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:0e8422f5cc6219c77fa5ee818608dfb290447456df4dca0f0649889faa33ace7

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."). Subtopic 805-60 provides guidance on the recognition and initial measurement of goodwill by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation.

##### [350-20-05-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:27d79f01dffb9a5e88b55a008ca9f34a8b9996d4012006a86890998c9637db6e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-05-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:20a76b6b1bc0e69b313fe87bd584e421b99e0182721fd413a8d79bae1f230d46

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in this Subtopic is presented in the following two Subsections:

1.  a
    
    General
    
2.  b
    
    Accounting Alternatives.

##### [350-20-05-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:cae301dd9b02d412a1ddd148949c8becb05c911ad1fe7aedd734e462bd756b41

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#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](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28)

.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](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83)

.

##### [350-20-05-4B](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:882d5742cb413f23ba014638c32db6d68ff8c9e3a3a77cad4e2af2354e09003f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

### Accounting Alternatives

##### [350-20-05-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:2136ee122c5f8c15a95440647e41f371b5b9154152f44b22d3e19d16f0713227

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#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](https://asc.understandingaccounting.org/asc/350/20/#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.

##### [350-20-05-5A](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:919303b05d7c2a216d783b2d98fd4c119c45fc323270488ccd3dd66483838bab

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4)
    
2.  b
    
    Subsequent Measurement—paragraphs
    
    [350-20-35-62 through 35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62)
    
3.  c
    
    Derecognition—paragraphs
    
    [350-20-40-8 through 40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8)
    
4.  d
    
    Other Presentation Matters—paragraphs
    
    [350-20-45-4 through 45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4)
    
5.  e
    
    Disclosure—paragraphs
    
    [350-20-50-3A through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A)
    
6.  f
    
    Implementation Guidance and Illustrations—paragraphs
    
    [350-20-55-26 through 55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26)
    
    .

##### [350-20-05-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z

Record version: sha256:6a8017fcec9a9d73e1bb83c09ffe360be8c02d6d49e8f2a38940622b7e6dc9de

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:9bc961ffae82944a6f0daca96779811fb6af45ced9c609c4ede48eca9b2b7e62

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/350/20/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [350-20-15-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:1a06a15d2d7cec8d6c87dc7301b8266ae33e2e5aec6e1268cd33a5577ecbd18f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

#### Transactions

##### [350-20-15-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:1afd9b109a7e4b8a2503c81f1c1da93a07e88c0854b2536503a3f2bc3801b6bc

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in this Subtopic applies to the following transactions and activities:

1.  a
    
    [Goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") 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](https://asc.understandingaccounting.org/updates/page-1833002/).
    
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](https://asc.understandingaccounting.org/updates/page-1833002/).

##### [350-20-15-2A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:64cd6ef2a58b73f5f2ef949ebaf850e382fb31383d4874c8d96d2604c8c14603

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/).

##### [350-20-15-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:9ca44b264190ee6592f7cb5817eb25ca5b6736b4e63915ddff86a99354f016a5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Although goodwill is an intangible asset, the term _intangible asset_ is used in this Subtopic to refer to an intangible asset other than goodwill.

##### [350-20-15-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:6ff16504c0d91f06a7fc3f4854c5f9d5c1de33f17a43f0039d056195252006da

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraphs

[350-20-15-4 through 15-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4)

,

[350-20-35-62 through 35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62)

,

[350-20-40-8 through 40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8)

,

[350-20-45-4 through 45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4)

,[350-20-50-3A through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A)

,

[350-20-55-26 through 55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26)

, and [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) provide guidance for an entity electing the accounting alternatives in this Subtopic. See paragraphs [350-20-65-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2) and [350-20-65-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-4)for transition guidance for private companies and not-for-profit entities on applying the accounting alternatives in Subtopic 350-20.

### Accounting Alternatives

##### [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:0a5953103bcd4cb4e59c89fe6cbe9a99e99e8d0df8f72fc0eeca78b148a8001e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A [private company](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.")or [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.")may 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](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") that an entity recognizes in a business combination in accordance with Subtopic 805-30, in an [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.") in accordance with Subtopic 958-805, or in a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") 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.

##### [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:6caabcdb7f10c4085a544dfbd91b76b14931db53e877cbed8eca3dd196cd7c3d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-15-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:06bd4def962253ef40e9861c5577d2fc9641b6844997c3491061ac59b3910620

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) or paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#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.

##### [350-20-15-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z

Record version: sha256:16f6bdcf65e58f085911bba1c4f5d2c6dc9004b2aaa9b9a83ee9305b10e4fbe3

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity that elects either of the accounting alternatives in this Subtopic is not required to elect or precluded from electing the other alternative.

Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z

Record version: sha256:58aa00208180de5bd246451a9ba01dee098938f6d05d93ec76103cce2a9daa64

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/350/20/#25-recognition)

SEC content: no

##### [350-20-25-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z

Record version: sha256:4dbda9c3bee805389c4b29d727bb7a1df8a009e34402c80baf4ab55c993d9110

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See Subtopic 805-30 for guidance on recognition at acquisition of [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") 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](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."). See Subtopic 805-60 for guidance on recognition of goodwill by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation.

##### [350-20-25-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z

Record version: sha256:c76f14276a10a43d24cfd078d1b7e5d9f65cfa6237a7e24bf7f5bfc11bb1f1ae

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-25-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z

Record version: sha256:30defd01df17c3680fe61a10cac53c1cde18129906927856f3e9064f609309d4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Costs of internally developing, maintaining, or restoring [intangible assets](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") (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.

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:7dc68c5a1fe42f691b878948cc27f94e4c74a6f94837deb0ad01463080f6fdf4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/350/20/#35-subsequent-measurement)

SEC content: no

#### Overall Accounting for Goodwill

##### [350-20-35-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:d67fb412952a31da9a85d02304aefc75a32079d846b1f5d92579cc90bf52c363

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") shall not be amortized. Instead, goodwill shall be tested at least annually for impairment at a level of reporting referred to as a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component)."). (Paragraphs

[350-20-35-33 through 35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33)

provide guidance on determining reporting units.)

##### [350-20-35-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a2a2fae1d6d73f0c180cad08f093d0a9eadebad31affbb0343db9fbbc2af0d9a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. However, an entity shall consider the related income tax effect from any tax deductible goodwill, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss.

##### [350-20-35-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:af07d69ea271bf2e61b646fa39eb388af410be093f509c3f8ce8739ce7d5033c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity may first assess qualitative factors, as described in paragraphs

[350-20-35-3A through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A)

, to determine whether it is necessary to perform the quantitative goodwill impairment test discussed in paragraphs

[350-20-35-4 through 35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4)

. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any).

#### Recognition and Measurement of an Impairment Loss

##### [350-20-35-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:618cecd5dab9b61485117628a8ddd8e9aaa09b696712069bb243866f0b5514fd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill.

##### [350-20-35-3B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:f6f6c9059735663f5b86768e3dec9c77a4c9b51337026b2c821807907f10c0fa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity has an unconditional option to bypass the qualitative assessment described in the preceding paragraph for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period.

##### [350-20-35-3C](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:e0ef6836a37c3e6bec934535374b518a9b0f5fae9059f36f6e2a321947cc6e26

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an entity shall assess relevant events and circumstances. Examples of such events and circumstances include the following:

1.  a
    
    Macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets
    
2.  b
    
    Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (consider in both absolute terms and relative to peers), a change in the market for an entity's products or services, or a regulatory or political development
    
3.  c
    
    Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows
    
4.  d
    
    Overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods
    
5.  e
    
    Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation
    
6.  f
    
    Events affecting a reporting unit such as a change in the composition or carrying amount of its net assets, a more-likely-than-not expectation of selling or disposing of all, or a portion, of a reporting unit, the testing for recoverability of a significant asset group within a reporting unit, or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit
    
7.  g
    
    If applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers).

##### [350-20-35-3D](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3D)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a80321b19fce3a330079c728196b1b4983e3344d0dddae38ed07c8b04c9679af

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.

##### [350-20-35-3E](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3E)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:75fa296cd79507f4acb95b40bc80bd7b0e1f1c748c7956b0dffadc2fadc8ca5d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity shall perform the quantitative goodwill impairment test.

##### [350-20-35-3F](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a3b047faeb4374d576deaa96d68e3df1eec5d79acdea60e505a068cfc69805bc

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of a reporting unit in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit's fair value with its carrying amount. An entity should place more weight on the events and circumstances that most affect a reporting unit's fair value or the carrying amount of its net assets. An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity has a recent fair value calculation for a reporting unit, it also should include as a factor in its consideration the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test.

##### [350-20-35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3G)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a671a85fdde5b942a2ce8f9b47bb23c7f7b9944800eefb1b3b0239c644a5d14a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test.

##### [350-20-35-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:495810ea7c332a7eb61bccf716982914e3d70b89b242d7670360784f0ef65466

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill.

##### [350-20-35-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:ba08554d3683b6a0e545b33b301f9333f02df00e20f5fb56caf92e52102be0f0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in paragraphs

[350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22)

shall be considered in determining the fair value of a reporting unit.

##### [350-20-35-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:4346a4d1ed8a13f69b3e384e5185e3c16edff527813f28aae7f28534b675e24e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired.

##### [350-20-35-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:84e7f19c91bef062e0f172fab18a4df3eefb4a66fd6f8f9b8bc12a991585891d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In determining the carrying amount of a reporting unit, deferred income taxes shall be included in the carrying amount of the reporting unit, regardless of whether the fair value of the reporting unit will be determined assuming it would be bought or sold in a taxable or nontaxable transaction.

##### [350-20-35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:8ec791b3e906ebe8f46bba3e3306cf97d6387e1fe8e5caf805a4d0e2ca9bffa6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss.

##### [350-20-35-8A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:f6e43afe36486975d5173eaafbd86f2cbd0a12235b32067fb0fb65a18ad5aba8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:c54ec27925a1de4c75d3ee9344bbbf839704726f533b73163e6abd4f99731b94

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If a reporting unit has tax deductible goodwill, recognizing a goodwill impairment loss may cause a change in deferred taxes that results in the carrying amount of the reporting unit immediately exceeding its fair value upon recognition of the loss. In those circumstances, the entity shall calculate the impairment loss and associated deferred tax effect in a manner similar to that used in a business combination in accordance with the guidance in paragraphs

[805-740-55-9 through 55-13](https://asc.understandingaccounting.org/asc/740/805/#740-805-55-9)

. The total loss recognized shall not exceed the total amount of goodwill allocated to the reporting unit. See Example 2A in paragraphs

[350-20-55-23A through 55-23C](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A)

for an illustration of the calculation.

##### [350-20-35-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:fd6ee29b4f14ec57926a135fa82f0cc07625e0517b2a3e9dd7e614425ead4106

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-10](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-10)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:df5748cc95c6d56bdb5cd0e8ebf698f64cc7c5a328a872dbd7cdc7cbee55cd6f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-11](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-11)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:fbbe61442f5e50a7fc8d29cc4242daeb7ea7581cde721b605a92adbee948e61d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-12](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-12)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:ecb295ac9c14a34ca8559ba365195da85f414c93a4dd987484eb676aa7a443c2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis.

##### [350-20-35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-13)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:b6808a4d79a84789ead9943071f2ddb388ab7f479b16050bf4659fffc2d38c44

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Subsequent reversal of a previously recognized goodwill impairment loss is prohibited once the measurement of that loss is recognized.

##### [350-20-35-14](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-14)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:04402106d768b0dd8c4a29645e8f3f2058568c8ff5496bc046d07cee2abb3d5a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-15](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-15)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:4061f3db5926371698fe05118dde6c13f9713b9243fc7a71ea2799abc29e22b6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-16](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-16)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:d3d08d6da50780045b630d2e7fb204c8ebe65c5efbf025762d0ba2d88b424fe3

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-17](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-17)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a62e838264bf6b85cd26e12a97a2d600f5eec356b14caed0a6925d4fdaa35b8c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-18](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-18)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a61a478a76cce1bcd199c70706813edcc3607d24ca72fb21b31d264a15804124

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-19](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-19)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:e82bb377351b2574060d476f7d73b6b56b7a2b6496427c26cc9b2bf9caf15c80

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-20](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-20)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:6c45693259143d6d1852d53a0295f39e58b1adcd33ad6ec51fc4bf581c64d780

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-35-21](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-21)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:d1787fce41f85ee50ed899eabc06ee3f1479e7433cfae61874f42f4bd8d2c2ef

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/).

#### Determining the Fair Value of a Reporting Unit

##### [350-20-35-22](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:32fb0cc6747e8f8b00c163940fb29efdecc087b2b847d1fd2e6cfa313dfe9188

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. However, the market price of an individual equity security (and thus the market capitalization of a reporting unit with publicly traded equity securities) may not be representative of the fair value of the reporting unit as a whole.

##### [350-20-35-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-23)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:300b121e52208ed9d2badb8cce11af689f8a199904c14632063645d36ae3afa7

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Substantial value may arise from the ability to take advantage of synergies and other benefits that flow from control over another entity. Consequently, measuring the fair value of a collection of assets and liabilities that operate together in a controlled entity is different from measuring the fair value of that entity's individual equity securities. An acquiring entity often is willing to pay more for equity securities that give it a controlling interest than an investor would pay for a number of equity securities representing less than a controlling interest. That control premium may cause the fair value of a reporting unit to exceed its market capitalization. The quoted market price of an individual equity security, therefore, need not be the sole measurement basis of the fair value of a reporting unit.

##### [350-20-35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-24)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:01915ee8e019f08a828022b7b1f5f76888bb860e978e0ff5fd369b58fb6b0a8f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In estimating the fair value of a reporting unit, a valuation technique based on multiples of earnings or revenue or a similar performance measure may be used if that technique is consistent with the objective of measuring fair value. Use of multiples of earnings or revenue in determining the fair value of a reporting unit may be appropriate, for example, when the fair value of an entity that has comparable operations and economic characteristics is observable and the relevant multiples of the comparable entity are known. Conversely, use of multiples would not be appropriate in situations in which the operations or activities of an entity for which the multiples are known are not of a comparable nature, scope, or size as the reporting unit for which fair value is being estimated.

##### [350-20-35-25](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-25)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:6e53b024a30fa39f11c5e6ff049b9e97825ad52111fda9f86087f14d3df496c8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Before estimating the fair value of a reporting unit, an entity shall determine whether that estimation should be based on an assumption that the reporting unit could be bought or sold in a nontaxable transaction or a taxable transaction. Making that determination is a matter of judgment that depends on the relevant facts and circumstances and must be evaluated carefully on a case-by-case basis (see Example 1 \[paragraphs

[350-20-55-10 through 55-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10)

\]).

##### [350-20-35-26](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-26)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:c0e03f8011c2db8dab1720b33bd0ac4168ae31db54bce74d1f299ae4ce6dc6dd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In making that determination, an entity shall consider all of the following:

1.  a
    
    Whether the assumption is consistent with those that marketplace participants would incorporate into their estimates of fair value
    
2.  b
    
    The feasibility of the assumed structure
    
3.  c
    
    Whether the assumed structure results in the highest and best use and would provide maximum value to the seller for the reporting unit, including consideration of related tax implications.

##### [350-20-35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-27)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:5277fc44c17beb2f9224d6889e0fee815e5d8cc119e4ddd76521bd020e390e6d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In determining the feasibility of a nontaxable transaction, an entity shall consider, among other factors, both of the following:

1.  a
    
    Whether the reporting unit could be sold in a nontaxable transaction
    
2.  b
    
    Whether there are any income tax laws and regulations or other corporate governance requirements that could limit an entity's ability to treat a sale of the unit as a nontaxable transaction.

#### When to Test Goodwill for Impairment

##### [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:14c4638223bef91bb164ac477f30ef38424f1efd39c52985f0d1f44e7a9d72c1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Goodwill of a reporting unit shall be tested for impairment on an annual basis and between annual tests in certain circumstances (see paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)). The annual goodwill impairment test may be performed any time during the fiscal year provided the test is performed at the same time every year. Different reporting units may be tested for impairment at different times.

##### [350-20-35-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-29)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:9ce668d078e4a6fe96079cd24a0792c3590dcf4e5ae74efcb08647d2bbbcac0d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).

##### [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:640783555f53af230e1b43e3528dd06c7464d46e0ba56140ea7a24d4bdff1a73

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Goodwill of a reporting unit shall be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)includes examples of such events and circumstances. Paragraphs

[350-20-35-3F through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F)

describe the process for making these evaluations.

1.  a
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
2.  b
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
3.  c
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
4.  d
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
5.  e
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
6.  f
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).
    
7.  g
    
    [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/).

##### [350-20-35-31](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-31)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:371f2bd3661aefa1883392d3107aaef0fe4d12f6edf1a172af5bd6bc567165aa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If goodwill and another asset (or asset group) of a reporting unit are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group was impaired, the impairment loss would be recognized prior to goodwill being tested for impairment.

##### [350-20-35-32](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-32)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a13c539a5196cc0dfb3ec16805d5b964a97cb866b53f9a2495d82b20f15b62a9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This requirement applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10.

#### Reporting Unit

##### [350-20-35-33](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:c4c66bfa8b0bf851cc18c3092d82cafbada6a8c5b3d8b32bf4a4e68b26ef1adf

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The provisions of Topic 280 shall be used to determine the [reporting units](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") of an entity.

##### [350-20-35-34](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-34)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:95bd365880d3078b954cc720713d37337d07b9959028b41fcce05b50403503cc

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A component of an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a reporting unit if the component constitutes a business or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") for which discrete financial information is available and segment management, as that term is defined in paragraph [280-10-50-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7), regularly reviews the operating results of that component. Subtopic 805-10 includes guidance on determining whether an asset group constitutes a business. Throughout the remainder of this Section, the term _business_ also includes a _nonprofit activity_.

##### [350-20-35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-35)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:89a7b0f8b2e578669742ee47dcaea50f5c79f39e05e06d507d8730d3cd4903c3

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


However, two or more components of an operating segment shall be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) shall be considered in determining if the components of an operating segment have similar economic characteristics.

##### [350-20-35-36](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-36)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:7a67701996cefa45545c02fc53484fc471b5c5d444e546bc66334fe17432df6d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An operating segment shall be deemed to be a reporting unit if all of its components are similar, if none of its components is a reporting unit, or if it comprises only a single component.

##### [350-20-35-37](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-37)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:47ab8cd31da5919e8ecabc13c514d03b99078e8251092b59cfa106b70a6351ec

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Reporting units will vary depending on the level at which performance of the segment is reviewed, how many businesses the operating segment includes, and the similarity of those businesses. In other words, a reporting unit could be the same as an operating segment, which could be the same as a reportable segment, which could be the same as the entity as a whole (entity level).

##### [350-20-35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-38)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:93d9b04ce265086a1314c0452e088dd4eeab4e55e4e73da9ce098d59eb92caf5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity that is not required to report segment information in accordance with Topic 280 is nonetheless required to test goodwill for impairment at the reporting unit level. That entity shall use the guidance in paragraphs

[280-10-50-1 through 50-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1)

to determine its operating segments for purposes of determining its reporting units.

#### Assigning Acquired Assets and Assumed Liabilities to a Reporting Unit

##### [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:1cf76eef7f21cccebda2f5b44713fa4a7a3141a58d23186f2c49cc5506c8ad1e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


For the purpose of testing goodwill for impairment, acquired assets and assumed liabilities shall be assigned to a reporting unit as of the acquisition date if both of the following criteria are met:

1.  a
    
    The asset will be employed in or the liability relates to the operations of a reporting unit.
    
2.  b
    
    The asset or liability will be considered in determining the fair value of the reporting unit.
    

Assets or liabilities that an entity considers part of its corporate assets or liabilities shall also be assigned to a reporting unit if both of the preceding criteria are met. Examples of corporate items that may meet those criteria and therefore would be assigned to a reporting unit are environmental liabilities that relate to an existing operating facility of the reporting unit and a pension obligation that would be included in the determination of the fair value of the reporting unit. This provision applies to assets acquired and liabilities assumed in a business combination and to those acquired or assumed individually or with a group of other assets.

##### [350-20-35-39A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:bfa10124647cb352cf49088d8ae4c7bf6a07937c1d288ada38ed9471e490dc21

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Foreign currency translation adjustments should not be allocated to a reporting unit from an entity's accumulated other comprehensive income. The reporting unit's carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit.

##### [350-20-35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-40)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:9efed1920275397f15da134f8ff1ebc9ac0a9876546f259917aec0d3b5d8300c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Some assets or liabilities may be employed in or relate to the operations of multiple reporting units. The methodology used to determine the amount of those assets or liabilities to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. For example, assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, could be assigned according to the benefit received by the different reporting units (or based on the relative fair values of the different reporting units). In the case of pension items, for example, a pro rata assignment based on payroll expense might be used. A reasonable allocation method may be very general. For use in making those assignments, the basis for and method of determining the fair value of the acquiree and other related factors (such as the underlying reasons for the acquisition and management's expectations related to dilution, synergies, and other financial measurements) shall be documented at the acquisition date.

#### Assigning Goodwill to Reporting Units

##### [350-20-35-41](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:612d8d0e07325c7da4c8b4c4eed8ddf5d5721442fa72b39ebb50e7d955c553db

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination or recognized by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation shall be assigned to one or more reporting units as of the acquisition date or the joint venture [formation date](https://asc.understandingaccounting.org/glossary/f/#formation-date "The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction."). Goodwill shall be assigned to reporting units of the acquiring entity that are expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. The total amount of acquired goodwill may be divided among a number of reporting units. The methodology used to determine the amount of goodwill to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. In addition, that methodology shall be consistent with the objectives of the process of assigning goodwill to reporting units described in paragraphs

[350-20-35-42 through 35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42)

.

##### [350-20-35-42](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:1eabb06a50907415c977f8efa5df91f0372695c0e86e87a16e0948d4400f5aff

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In concept, the amount of goodwill assigned to a reporting unit would be determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. That is:

1.  a
    
    An entity would determine the fair value of the acquired business (or portion thereof) to be included in a reporting unit—the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit. Subtopic 805-20 provides guidance on assigning the fair value of the acquiree to the assets acquired and liabilities assumed in a business combination.
    
2.  b
    
    Any excess of the fair value of the acquired business (or portion thereof) over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit is the amount of goodwill assigned to that reporting unit.
    
3.  c
    
    [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).

##### [350-20-35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-43)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:0fcff861dc8e3b9c56c5ea8288af1b86618ca4a3d77fd23186ccebb573505165

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If goodwill is to be assigned to a reporting unit that has not been assigned any of the assets acquired or liabilities assumed in that acquisition, the amount of goodwill to be assigned to that unit might be determined by applying a with-and-without computation. That is, the difference between the fair value of that reporting unit before the acquisition and its fair value after the acquisition represents the amount of goodwill to be assigned to that reporting unit.

##### [350-20-35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-44)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:04b02f766ac71e77577c34b4a82f76c5b5c00543b6b03eec94b153e72ce6a8ef

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic does not require that goodwill and all other related assets and liabilities assigned to reporting units for purposes of testing goodwill for impairment be reflected in the entity's reported segments. However, even though an asset may not be included in reported segment assets, the asset (or liability) shall be allocated to a reporting unit for purposes of testing for impairment if it meets the criteria in paragraph [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39).

#### Reorganization of Reporting Structure

##### [350-20-35-45](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-45)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:6050831f9a67ed94e0e3c30250c234eaf1f749849782f2572d6322be42ad4343

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


When an entity reorganizes its reporting structure in a manner that changes the composition of one or more of its reporting units, the guidance in paragraphs

[350-20-35-39 through 35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39)

shall be used to reassign assets and liabilities to the reporting units affected. However, goodwill shall be reassigned to the reporting units affected using a relative fair value allocation approach similar to that used when a portion of a reporting unit is to be disposed of (see paragraphs

[350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1)

).

##### [350-20-35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-46)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:904e7d9ddbef5a7b49054ef9e2ad765d0d73d09fc933d120f20d53435797d20f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


For example, if existing reporting unit A is to be integrated with reporting units B, C, and D, goodwill in reporting unit A would be assigned to units B, C, and D based on the relative fair values of the three portions of reporting unit A prior to those portions being integrated with reporting units B, C, and D.

##### [350-20-35-47](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-47)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:2c62827c77b7dd64548631685023b0f2bbf43915157a6082cb6e4cf5f1ecc6c2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Subsidiary goodwill might arise from any of the following:

1.  a
    
    Acquisitions that a subsidiary made prior to its being acquired by the parent
    
2.  b
    
    Acquisitions that a subsidiary made subsequent to its being acquired by the parent
    
3.  c
    
    Goodwill arising from the business combination in which a subsidiary was acquired that the parent pushed down to the subsidiary's financial statements.

##### [350-20-35-48](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-48)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:68d573211c88e71028aec79519f95d75692599e4fd990c4dafdc5ceb56797aeb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


All goodwill recognized by a public or nonpublic subsidiary (subsidiary goodwill) in its separate financial statements that are prepared in accordance with generally accepted accounting principles (GAAP) shall be accounted for in accordance with this Subtopic. Subsidiary goodwill shall be tested for impairment at the subsidiary level using the subsidiary's reporting units. If a goodwill impairment loss is recognized at the subsidiary level, goodwill of the reporting unit or units (at the higher consolidated level) in which the subsidiary's reporting unit with impaired goodwill resides must be tested for impairment if the event that gave rise to the loss at the subsidiary level would more likely than not reduce the fair value of the reporting unit (at the higher consolidated level) below its carrying amount (see paragraph [350-20-35-3C(f)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)). Only if goodwill of that higher-level reporting unit is impaired would a goodwill impairment loss be recognized at the consolidated level.

##### [350-20-35-49](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-49)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:afd3664ad2e8de30abd61088c48e6929f612752c5ec283e262c0596909411a2c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If testing at the consolidated level leads to an impairment loss, that loss shall be recognized at that level separately from the subsidiary's loss.

##### [350-20-35-50](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-50)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:724dbc5dd2d0a74a523b0de5e861f50c5e46310d4a239b477090ff7e6b885b6f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).

##### [350-20-35-51](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-51)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:f2e3b36652605dc9567e3c5bef8b3b575b29d4c308dcae51dd9ba6eda0a519af

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See paragraphs

[350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1)

for guidance on disposal of all or a portion of a reporting unit.

##### [350-20-35-52](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:1daa31ae27a2ea429f2bcb4ca361ff713251d53239efe7acc74a13719d9d1167

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraphs 350-20-35-52 through 35-57 superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52).

##### [350-20-35-57A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:38be6f1c511736d68db7f8a5d49c4d36c076e126fd6712205cee0d24ff9a2d46

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If a reporting unit is less than wholly owned, the fair value of the reporting unit as a whole shall be determined in accordance with paragraphs

[350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22)

, including any portion attributed to the noncontrolling interest. Any impairment loss measured in the goodwill impairment test shall be attributed to the parent and the [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.") on a rational basis. If the reporting unit includes only goodwill attributable to the parent, the goodwill impairment loss would be attributed entirely to the parent. However, if the reporting unit includes goodwill attributable to both the parent and the noncontrolling interest, the goodwill impairment loss shall be attributed to both the parent and the noncontrolling interest.

##### [350-20-35-57B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:068ca4d936230853914d39c8fb1bf56ebdb7e430bac4cfddc87f67a92d1bb852

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If all or a portion of a less-than-wholly-owned reporting unit is disposed of, the gain or loss on disposal shall be attributed to the parent and the noncontrolling interest.

##### [350-20-35-58](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-58)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:8efbf55c316a28f47f81038f67ee6b1bb678c0048c7b280cc4c78c1b81d7165d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall not be amortized.

##### [350-20-35-59](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-59)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:ac456fb5c33c54f01b0024b09bb90b4d47a168b76b55bc8cc6e6c4d296898607

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32).

##### [350-20-35-60](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-60)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:858dc3669718c907275f7e3493edde93673eaabdda5b2c6b2b63386dc456ee33

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2014-02](https://asc.understandingaccounting.org/updates/asu-2014-02/).

#### Deferred Income Taxes

##### [350-20-35-61](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-61)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:7cbc6e2ec68b2bb0746c58681471bf57ba49c33063632bfe8e43e219aef71c61

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraph

[805-740-25-3 through 25-4](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-3)

states that deferred income taxes are not recognized for any portion of goodwill for which amortization is not deductible for income tax purposes. For guidance on recognition of deferred income taxes related to goodwill when amortization of goodwill is deductible for tax purposes, see paragraphs

[805-740-25-6 through 25-9](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-6)

.

### Accounting Alternatives

#### Accounting Alternative for Amortizing Goodwill

##### [350-20-35-62](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:f81d531ea429896ecdf8a5664a71595529ed3a177be062da3871d08a9392b488

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill.

##### [350-20-35-63](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:727265820422d79700a0abb11e61038d24b6e8da19a6bd8be9e1d15a19c2d739

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Goodwill relating to each [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity."), [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."), [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation, or reorganization event resulting in fresh-start reporting (amortizable unit of goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate.

##### [350-20-35-64](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-64)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:3b60f0485feb95f581f1a84cca0db58d2a4968c802bc9c0170fd3f4cf9f82190

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity may revise the remaining useful life of goodwill upon the occurrence of events and changes in circumstances that warrant a revision to the remaining period of amortization. However, the cumulative amortization period for any amortizable unit of goodwill cannot exceed 10 years. If the estimate of the remaining useful life of goodwill is revised, the remaining carrying amount of goodwill shall be amortized prospectively on a straight-line basis over that revised remaining useful life.

##### [350-20-35-65](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-65)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:de511022f6091adb64de155c9ea262ab7cfac0368daf7c19c60911efbc24f5a9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Upon adoption of this accounting alternative, an entity shall make an accounting policy election to test goodwill for impairment at the entity level or the [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") level. An entity that elects to perform its impairment tests at the reporting unit level shall refer to paragraphs

[350-20-35-33 through 35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33)

and paragraphs

[350-20-55-1 through 55-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-1)

to determine the reporting units of an entity.

##### [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:c68580298e04febcb897aa1405055b20cc3f572669a72ef0ffdc3d46dd6f5d0f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Goodwill of an entity (or a reporting unit) shall be tested for impairment if an event occurs or circumstances change that indicate that the fair value of the entity (or the reporting unit) may be below its carrying amount (a triggering event). Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those events or circumstances. Those examples are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of a reporting unit) in determining whether to perform the goodwill impairment test. For those entities that have elected the accounting alternative for a goodwill impairment triggering event evaluation in paragraph [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84), a goodwill triggering event evaluation shall be performed only as of the end of each reporting period. If an entity determines that there are no triggering events, then further testing is unnecessary.

##### [350-20-35-67](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:82e4da0a7a802d51ac520c19de4ce02348a56d24b4f7397f4368f71728f4863a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Upon the occurrence of a triggering event, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the entity (or the reporting unit) is less than its carrying amount, including goodwill. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those qualitative factors.

##### [350-20-35-68](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-68)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:4031031b742fe7c8c5cbb927216ff714d358ba9bed7a7db3cea99887ee141a94

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Because the examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of the reporting unit) in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of its fair value with its carrying amount (or of the reporting unit's fair value with the reporting unit's carrying amount). An entity should place more weight on the events and circumstances that most affect its fair value or the carrying amount of its net assets (or the reporting unit's fair value or the carrying amount of the reporting unit's net assets). An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that its fair value is less than its carrying amount (or the fair value of the reporting unit is less than the carrying amount of the reporting unit). If an entity has a recent fair value calculation (or recent fair value calculation for the reporting unit), it also should include that calculation as a factor in its consideration of the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test.

##### [350-20-35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-69)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:36dca88e15243b771a675fdf9725495d63620b0704eb9148da57863efedeb3c5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test.

##### [350-20-35-70](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-70)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:2d70ee1e03c7ef6bfb755a19f7a31502fa1f3a67b3398faf2197f0b41131d45a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity has an unconditional option to bypass the qualitative assessment described in paragraphs

[350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67)

and proceed directly to a quantitative calculation by comparing the entity's (or the reporting unit's) fair value with its carrying amount (see paragraphs

[350-20-35-72 through 35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72)

). An entity may resume performing the qualitative assessment upon the occurrence of any subsequent triggering events.

##### [350-20-35-71](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-71)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:809c5029005084fbbbdbd2bcb1209f7862198ef1b7b82e08c430a0e800df7bac

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is not more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount, further testing is unnecessary.

##### [350-20-35-72](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:716174a6462a3b1eeef8fba0f9035450c881120efb2c710d0ee473051eee64f4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount or if the entity elected to bypass the qualitative assessment in paragraphs

[350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67)

, the entity shall determine the fair value of the entity (or the reporting unit) and compare the fair value of the entity (or the reporting unit) with its carrying amount, including goodwill. A goodwill impairment loss shall be recognized if the carrying amount of the entity (or the reporting unit) exceeds its fair value.

##### [350-20-35-73](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-73)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:b8c46a9d29a66f4675f31ba930208dad9c0671edcd7500df15fa7bf3626d5e6d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A goodwill impairment loss, if any, shall be measured as the amount by which the carrying amount of an entity (or a reporting unit) including goodwill exceeds its fair value, limited to the total amount of goodwill of the entity (or allocated to the reporting unit). Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the entity (or the reporting unit), if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. See Example 2A in paragraph [350-20-55-23A](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) for an illustration.

##### [350-20-35-74](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-74)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:b0ee16c7304a231cbe59f98cf4f2c7773ec7311c46914346f3c192617f17c884

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in paragraphs

[350-20-35-22 through 35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22)

shall be considered in determining the fair value of the entity (or the reporting unit).

##### [350-20-35-75](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-75)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:6ae270665db26204f296af2eedff019271b6996ec2cfcbcbc74b8d05b2a4bdd8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in paragraphs

[350-20-35-39 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39)

shall be considered in assigning acquired assets (including goodwill) and assumed liabilities to the reporting unit when determining the carrying amount of a reporting unit.

##### [350-20-35-76](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-76)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:d48892dccf4f6248264f5b69d698720e3ecfb01989277508d42b790e426c7827

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


For an entity subject to the requirements of Topic 740 on income taxes, when determining the carrying amount of an entity (or a reporting unit), deferred income taxes shall be included in the carrying amount of an entity (or the reporting unit), regardless of whether the fair value of the entity (or the reporting unit) will be determined assuming it would be bought or sold in a taxable or nontaxable transaction.

##### [350-20-35-77](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-77)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:e632ca9215072c2f5f16eab80ee79ecf33dea4f42e049a2829d8232927bfebdf

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The goodwill impairment loss, if any, shall be allocated to individual amortizable units of goodwill of the entity (or the reporting unit) on a pro rata basis using their relative carrying amounts or using another reasonable and rational basis.

##### [350-20-35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-78)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:328fc41670d3ad1716b91f68cb261b2eea3f08d353067a0ea0bb3665e6ef3f60

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis, which shall be amortized over the remaining useful life of goodwill. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited.

##### [350-20-35-79](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-79)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:00fa7dca1df96ef5fac53af128ac5b77f5ff04f89f23e91bc066d440fefb9409

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If goodwill and another asset (or asset group) of the entity (or the reporting unit) are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 on property, plant, and equipment (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group is impaired, the impairment loss would be recognized prior to goodwill being tested for impairment.

##### [350-20-35-80](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-80)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:9d8e06a77845cd0e5769586eeecdca17041e1b05d00383cdbc814e4dc762be01

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The requirement in the preceding paragraph applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10.

##### [350-20-35-81](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-81)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:a17394371dec3c0e4a2e8ed93b6f82936f23a28daabbcf3770968d305375bfa5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate.

##### [350-20-35-82](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-82)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:5e4c69eeb16cab0bc85963fb5d97ed5f87d4ac5c79cee306222f331821cacada

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32).

#### Accounting Alternative for a Goodwill Impairment Triggering Event Evaluation

##### [350-20-35-83](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:1c0b4cad7079d91b30e307e3bd44c44e6a8ed1251d89b801cd83f00a2764b69a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elect the accounting alternative for a goodwill impairment triggering event evaluation.

##### [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:ed4b400c4ac8a66d7892c1f2e2585b8c23b3a686701381b2a9492a07c22498be

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity may elect to perform its goodwill impairment triggering event evaluation only as of the end of each reporting period, whether the reporting period is an interim or annual period. That is, the entity would not evaluate goodwill impairment triggering events and measure any related impairment during the reporting period. An entity electing the accounting alternative shall assess whether events or circumstances have occurred that would require an entity to test goodwill for impairment as follows:

1.  a
    
    For an entity that has elected the accounting alternative for amortizing goodwill, the entity's evaluation of a triggering event, as described in paragraph [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66), shall be performed only as of each reporting date.
    
2.  b
    
    For an entity that has not elected the accounting alternative for amortizing goodwill:
    
    1.  1
        
        If the entity performs its annual goodwill impairment test as of the end of the reporting period, the entity shall not evaluate its goodwill for impairment during the reporting period as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30).
        
    2.  2
        
        If the entity performs its annual goodwill impairment test on a date other than the end of the reporting period (in accordance with paragraph [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28)), the entity's evaluation of impairment between annual goodwill impairment tests (as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)) shall be performed only as of the end of a reporting period.

##### [350-20-35-85](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-85)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:0336f1831cbd04d5ac48da94284d235976761918bc58eaebac0883876043074c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity electing this accounting alternative shall apply it only to goodwill evaluated in accordance with this Subtopic. This accounting alternative does not change the following:

1.  a
    
    The requirement to assess other assets for impairment (for example, long-lived assets and indefinite-lived intangibles) under existing guidance. If the impairment test related to other assets would have resulted in a goodwill impairment triggering event, an entity electing this accounting alternative should consider the results of an impairment test related to other assets in connection with its goodwill impairment test only as of its annual goodwill impairment testing date and the reporting date, whether that date is an interim or annual reporting date, as applicable.
    
2.  b
    
    The requirements to test the remaining goodwill for impairment if only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of in accordance with paragraph [350-20-40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7).

##### [350-20-35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-86)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z

Record version: sha256:2c2bc09d23657ca504d3bec83fb183fc8df784002cfc4f7a9faa8fd6bfaf15dd

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity shall not apply this guidance retroactively to interim periods for which annual financial statements have already been issued.

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:d4ad681847b9dff5beb34070cd2a9ff3d0360ac76e74358efe64ba0773e0e08c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/350/20/#40-derecognition)

SEC content: no

#### Disposal of All or a Portion of a Reporting Unit

##### [350-20-40-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:939c706a8a91635b0441c60f487b809f0a296076a2f77c6b9450d924b05d6ea8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-40-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:f11f5c2fef2080122f5f4eee679515820771cde60873ef13ac7c6170165cfd10

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


When a portion of a reporting unit that constitutes a business (see Section 805-10-55) or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.")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.

##### [350-20-40-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:465305fd35513e01a02cde048c0d93490332dc86610e89b09df1d7789d9d9994

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-40-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:6d4259aeea52ba721a91157d19169aa4010921c02d9de1e36f36a00d11e0be51

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-40-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:073ff5d28997bb2756a86980b01900009a27165a3eabde27e5f5c524b8c0c4c5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-40-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:05766c6ae5286d019d6f061a3efe701bc71a240d610fc5ccab585af7be25a4f1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:93dacb57e129c1a59d614d49f61dbe7a37888328be48d1b012b05d02e084457b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A)

using its adjusted carrying amount.

### Accounting Alternatives

##### [350-20-40-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:d0840a4b6301c755e6148857d8a30460f034db8992f5dec3aaf77e82a4b65228

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill.

#### Disposal of a Portion of an Entity (or a Reporting Unit)

##### [350-20-40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z

Record version: sha256:bdece50677911f9edc472b78178051692ef25ed838ec93eb107f476580fd99c4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


When a portion of an entity (or a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).")) that constitutes a business or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") 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.

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:6a9f93b2c8f9114c3f3e0fcee5133e6d0cdc82195e2a97a480dd47924eaedbbf

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/350/20/#45-other-presentation-matters)

SEC content: no

##### [350-20-45-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:4cbbeca458afeac0c8074008befada8b9b22ac0b88e53734b23476fe6a1115d8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The aggregate amount of [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") shall be presented as a separate line item in the statement of financial position.

##### [350-20-45-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:f3fbe6d648e9545155745b894afa85a86cd07f605e9314ba89c15d927b913334

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-45-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:d71ec4d816018d09efa0a4af777a85801008e4f5cc39f2902414371ad0b86b60

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

### Accounting Alternatives

##### [350-20-45-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:4ff05cc13e74da82585e01e256e932f32627ddd4fed8e9180b3ee9afe652c447

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following guidance for [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill.

##### [350-20-45-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:3d326c15155bf3b516fa12e0ebd8f0ecc890d510574c021406a4a82c880b301b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-45-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:6354e81231d84a115013098e3d2f4236399955535ac76da4b71006747d218e36

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z

Record version: sha256:227f1f44763828360b5661d6d880c7d946c975197652cec5b934db9941edfd02

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:1a7a1d7b8c2fede0ad959474ca652e4e8a40c783cf859c8c5534ead2b9948ab2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/350/20/#50-disclosure)

SEC content: no

#### Information for Each Period for Which a Statement of Financial Position Is Presented

##### [350-20-50-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:0861d7ea71cb634eff70552cc77e0e9d6aa5920c81f345fbe056328714a8743f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The changes in the carrying amount of [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") during the period shall be disclosed, showing separately (see Example 3 \[paragraph [350-20-55-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-24)\]):

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](https://asc.understandingaccounting.org/asc/360/10/#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](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-2)
    
    and [805-740-45-2](https://asc.understandingaccounting.org/asc/740/805/#740-805-45-2)
    
4.  d
    
    Goodwill included in a disposal group classified as held for sale in accordance with paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#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.

##### [350-20-50-1A](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:f89681abf552e6eea261a5cce15968b5368d00974e9b29e8361aa89aee010868

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

#### Goodwill Impairment Loss

##### [350-20-50-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:344329aa8cb7f04e528da132a723952531be132019aced4350db8cf99f764595

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/updates/asu-2017-04/).

##### [350-20-50-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:871229ebe3ed9eb6d0e30cd7a415fe031f01a7beab9520dc5d1263e703c87465

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination.

### Accounting Alternatives

##### [350-20-50-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:3eb4460d676f8d107243556695fc0752864d7333c3bab2263631d38913fe5cb9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The information in paragraphs

[350-20-50-4 through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4)

shall be disclosed in the notes to financial statements for any entity within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elects the accounting alternative for amortizing [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.").

##### [350-20-50-3B](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:05479782039b8c60fc973a18d1d4c5dde7b03b65871c35ff13ad79e233e2450d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#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](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1).

#### Disclosures about Additions to Goodwill

##### [350-20-50-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:b05870ad1d8bdf9713c0737627c133b418f5278923bc80d5cf5a6afe378f2955

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities."), by [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation, or 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.

#### Information for Each Period for Which a Statement of Financial Position Is Presented

##### [350-20-50-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:3b4ec47ebdb038e53dccdebd056f78f481a0c247886d93a57791b5c9dc7f5256

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) and goodwill derecognized during the period without having previously been reported in a disposal group classified as held for sale.

#### Goodwill Impairment Loss

##### [350-20-50-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:d3f87f4ba863e9f67a77613963d4dc10e1682c3ec0dfdcf001ee90683f724ed0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z

Record version: sha256:ff542de6f714cb4c8b4c41ec1690f0001ab39587f5654f0600d41337562f7a62

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) 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.

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:c59eb304c4c9d5ccde6408bd1b7f90d20d6cecef1c4810e9aeab5609e080ff6f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/350/20/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Implementation Guidance

##### [350-20-55-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:3c24e22c2e28bfe7f3242839f5f9fd323a1bbea0d8df9d9823a32594977c5b10

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Determining whether a component of an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") is a matter of judgment based on an entity's individual facts and circumstances. Although paragraphs

[350-20-35-33 through 35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33)

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.

##### [350-20-55-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:1c97effb62428e76f00e905bc148fe18e19dfa405f5e1417e6ea89c1f52fb666

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The characteristics identified in paragraphs

[350-20-35-33 through 35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33)

that must be present for a component to be a reporting unit are discussed in the following implementation guidance.

##### [350-20-55-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:e7c6e07473ebce90c3aa5ca9eac5aa06803fd18ca28d23619b32e97acc3a888d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The determination of whether a component constitutes a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or a [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") 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.

##### [350-20-55-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:c9c921c79be12f3d8587d0cfc956c6cc4a11d44a20ddf9a2bfc25d136c674d4a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/280/10/#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](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.") 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](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39)

).

##### [350-20-55-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:d19d7e7571b7c0e1112d2017af66a6929bbbafcac33dd723bf2c39b79be12b70

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Segment management, as defined in paragraphs

[280-10-50-7 through 50-8](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7)

, 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.

##### [350-20-55-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:64130bd2a4de7e48511a6e6fb9a1f238ae4c503803a7b8db10003883253ed8b4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:de6317634de6be1bdfd8b59ab7f8268e7acbee5cc5a3e2813fee19591c1bb13f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In determining whether the components of an operating segment have similar economic characteristics, all of the factors in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#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.

##### [350-20-55-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:8bdf5cea635c0c680b7c652d2638ebb11400f400387833d3e8e0a36ad893d557

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:f398a1175401c159ddde672f29cd18e35d4147a33872b63c66b6c86f7f9734ed

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If two operating segments have been aggregated into a reportable segment by applying the aggregation criteria in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#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](https://asc.understandingaccounting.org/asc/280/10/#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).

#### Illustrations

##### [350-20-55-10](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:6a1e7e3254689750f32064bce88a54edbf20e572208b30593b0e702d649c24c0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-11](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-11)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:3a8c13a0e6704e37e346706d39c440f0a05747981e2be26996817f167569ca91

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-12](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-12)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:0c9464e243b9e3cd737683e5c7d6e4cbad48ed1f83e32fefa3bf77773175aa4c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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%).

##### [350-20-55-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-13)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:e5bb8624b8f4c66b12806997c32fa63377efb29733db2d1b21bde0a71f4ad651

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In the quantitative impairment test in paragraphs

[350-20-35-4 through 35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4)

, 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.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-2A9B4923-FB4E-4546-A8AB-942826EA7319-low.gif)
    
    Nontaxable Taxable Gross proceeds (fair value) $80 $90 Less: taxes arising from transaction (10) (22) Value to Entity A $70 $68

##### [350-20-55-14](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-14)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:10d3f431c38a27ba9fa0e6c0a5f6616e3e024dd5a97fd234b766ee0c05437753

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In the quantitative impairment test, Entity A would determine the carrying amount of Reporting Unit as follows.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-835839B5-A6E7-4644-B7F4-835E34D58E28-low.gif)
    
    Net assets $60 Goodwill 40 Deferred taxes (10) Carrying value $90

##### [350-20-55-15](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-15)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:313c8698de6a1a58f15bef2694153a672fbede6614b27d3792da3e379b1c47e0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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).

##### [350-20-55-16](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-16)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:f4d3b056f2b3dbe948f4842f3300cf24d1ade5be2eaacac3cf761d8b51b193fb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-17](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-17)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:004f39ec8da6b76d4488a5e87ada62b9f4461238910f423737aec306de13d46a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-18](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-18)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:469f82255ebf452d2e83a8e5cf66a4690435e6258196a83946e47392271a3187

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-19](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-19)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:a76087d371c75f0c30d7affea21125c8266749f2a631e74945d0212cc7b26249

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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%).

##### [350-20-55-20](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-20)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:df090184be2cc01447e0301a756d430cc9efd2cf679fa8cbee5abb5a953e5fbb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In the quantitative impairment test in paragraphs

[350-20-35-4 through 35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4)

, 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.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-0244B189-CC70-47C7-9C71-A7B152108C72-low.gif)
    
    Nontaxable Transaction Taxable Transaction Gross proceeds (fair value) $65 $80 Less: taxes arising from transaction (4) (18) Value to Entity A $61 $62

##### [350-20-55-21](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-21)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:ad2d7f50f15074887e319ac1ef3647bb77db496ff6254b425b06dbb4aed9c4c4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-43D060F0-72F7-46D8-97B4-802DB2A38B06-low.gif)
    
    Net assets $60 Goodwill 40 Deferred income taxes (10) Carrying value $90

##### [350-20-55-22](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-22)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:b9452dd1c7089d36e5aaef9ee4851723f4d3f2cf63e1e0eef7e07cf5fe21fbd4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying amount ($90) exceeds its fair value ($80).

##### [350-20-55-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:c3512141be786ee8b50fc7b69847feaa7bed8bf702e52f295414dba72631edff

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-23A](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:15c11e0aa30e0ff167a16c633e3419647f3f44beb0653c22cce979968efdb574

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-23B](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23B)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:56c960651842296aeb90a21b1b6c0bc5e53bfd2f3b6fdc92322c49766c04b575

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

-   Beta Entity has goodwill from an acquisition in Reporting Unit X. All of the goodwill allocated to Reporting Unit X is tax deductible. On October 1, 20X6 (the date of the annual impairment test for the reporting unit), Reporting Unit X had a book value of goodwill of $400, which is all tax deductible, deferred tax assets of $200 relating to the tax-deductible goodwill, and book value of other net assets of $400. Reporting Unit X is subject to a 40 percent income tax rate. Beta Entity estimated the fair value of Reporting Unit X at $900.
    
-   ![](https://asc.understandingaccounting.org/asc-img/GUID-1143ECB6-B929-42D5-A461-2F8E6032F70E-low.gif)
    
    Carrying Amount Fair Value Preliminary Impairment Preliminary Deferred Tax Adjustment Carrying Amount after Preliminary Impairment Goodwill $400 $ - $(100) $ - $300 Deferred taxes 200 - - 40 240 Other net assets 400 - - - 400 Total " $1,000 " $900 $(100) $40 $940

##### [350-20-55-23C](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23C)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:10c9b594a667984165484b2de494602f9f68b39b4632db96a1a48ad66592ed12

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/740/805/#740-805-55-9)

to Reporting Unit X, as follows.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-CF45D93B-54C3-431C-83AD-EDA6DA98604A-low.gif)
    
    Simultaneous equation: \[tax rate/(1 - tax rate)\] × (preliminary temporary difference) = deferred tax asset Equation for this example: 40%/(1 - 40%) × 100 = 67 Carrying Amount Fair Value Preliminary Impairment Adjustment for Equation Carrying Amount after Impairment Goodwill $400 $ - $(100) $(67) $233 Deferred taxes 200 - - 67 267 Other net assets 400 - - - 400 Total " $1,000 " $900 $(100) $0 $900

##### [350-20-55-23D](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23D)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:136802fade6ce969afee8db1d34a82d4bb67c8a3b34c99577d1cfdcba4c1ed99

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [350-20-55-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-24)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:49cdc10b0cc57d28c5d01f17593af11fa4366e8f623a3a98e0fe7d4863f2bea3

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


In accordance with paragraphs

[350-20-50-1 through 50-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1)

, the following disclosures would be made by Theta Entity in its December 31, 20X3 financial statements relating to goodwill.

-   Theta Entity has three reporting units with goodwill—Software, Electronics, and Communications—and two reportable segments—Technology and Communications. The Electronics reporting unit has a negative carrying amount.
    
-   Note C: Goodwill
    
-   The changes in the carrying amount of goodwill for the year ended December 31, 20X3, are as follows.
    
    -   ![](https://asc.understandingaccounting.org/asc-img/GUID-B5D5D4CE-AE02-4955-8FC0-BA0A0CE06333-low.gif)
        
        ($000s) "Technology Segment" "Communications Segment" Total "Balance as of January 1, 20X3" Goodwill " $1,413 " " $1,104 " " $2,517 " Accumulated impairment losses - (200) (200) "1,413" 904 " 2,317 " Goodwill acquired during year 189 115 304 Impairment losses - (46) (46) Goodwill written off related to sale of business unit (484) - (484) "Balance as of December 31, 20X3" Goodwill " 1,118 " " 1,219 " " 2,337 " Accumulated impairment losses - (246) (246) " $1,118 " $973 " $2,091 "
        
-   The Communications segment is tested for impairment in the third quarter, after the annual forecasting process. Due to an increase in competition in the Texas and Louisiana cable industry, operating profits and cash flows were lower than expected in the fourth quarter of 20X2 and the first and second quarters of 20X3. Based on that trend, the earnings forecast for the next five years was revised. In September 20X3, a goodwill impairment loss of $46 was recognized in the Communications reporting unit. The fair value of that reporting unit was estimated using the expected present value of future cash flows.
    
-   The Electronics reporting unit to which $498 of goodwill is allocated had a negative carrying amount on December 31, 20X3, and 20X2. This reporting unit is part of the Technology segment.

##### [350-20-55-25](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-25)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:93a427dcf03177fa1017103a63af4c61c80b2e3343f2c0a46e1e20f384ef65aa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A)

.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-2E0DCF05-F286-4297-A5AF-BAADC5E754EB-low.gif)
    

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.

### Accounting Alternatives

#### Implementation Guidance

##### [350-20-55-26](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:305faf7243abae1cac18b7e7d80d8aa10f8504cd571970419be7bb7680a1b47d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following flowchart provides an overview of the accounting alternative for amortizing goodwill for entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4).

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-273DDE41-8A87-4EEB-9B47-C0D43D5CB760-low.gif)
    
    Qualitative Assessment Evaluate relevant events or circumstances to determine whether it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount (see note 1). Is it more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount? Calculate the fair value of the entity (or the reporting unit) and compare with its carrying amount, including goodwill. Is the fair value of the entity (or the reporting unit) less than its carrying amount? Recognize impairment equal to the difference between the carrying amount of the entity (or the reporting unit) and its fair value, not to exceed the carrying amount of goodwill. Yes Triggering Event Has an event occurred or circumstances changed that would indicate that the fair value of the entity (or the reporting unit) may be below its carrying amount? Yes No Yes No No Stop
    

Note 1:

-   An entity has the unconditional option to skip the qualitative assessment and proceed directly to calculating the fair value of the entity (or the reporting unit) and comparing that value with its carrying amount, including goodwill.

#### Illustrations

##### [350-20-55-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-27)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:8fe13c0c87b41af09c72436453e573ab3a3c26e688504454543f311b7fb849e1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#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.

##### [350-20-55-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-28)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:b2a77c8a7e0220d498c4655402fe3cb515832100abf112ee918a4ddd91828a9e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#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.

##### [350-20-55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-29)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z

Record version: sha256:426a8a941fe459b8a7cdf306896539bd7f418858aa29707085920ed9ac11cbdb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z

Record version: sha256:9112ab635d33e316ba70a2045c296ab900ae42874257c4a07eac37113b686b66

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 350-20-65: 65 Transition and Open Effective Date Information

[Read section](https://asc.understandingaccounting.org/asc/350/20/#65-transition-and-open-effective-date-information)

SEC content: no

##### [350-20-65-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z

Record version: sha256:007a277cc57b09dc15bd122271920b8238901abc333cbeef30800a8f0df88c7e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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_.

#### Transition Related to Accounting Standards Updates No. 2014-02, <em class="ph i">Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill,</em> No. 2019-06, <em class="ph i">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</em>, and No. 2021-03, <em class="ph i">Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events</em>

##### [350-20-65-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z

Record version: sha256:5361ff390dba6c95d32c769bf4543997e55ce3aff473dc4c0d331d76b1aa7068

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/350/20/#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](https://asc.understandingaccounting.org/asc/323/10/#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](https://asc.understandingaccounting.org/updates/asu-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](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2).

##### [350-20-65-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z

Record version: sha256:b7e987711557a6542b1c1932ce7658c5187c8b2394c7973c5313e662ba9a0e22

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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_.

#### Transition Related to Accounting Standards Update No. 2021-03, <em class="ph i">Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events</em>

##### [350-20-65-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z

Record version: sha256:a576ac97bd65f5b1750b1f255f482e7eae76b4258e0ca1997b69da7e319c9878

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2).