# ASC 350-980-35: Intangibles—Goodwill and Other — Regulated Operations — 35 Subsequent Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/350/980/#35-subsequent-measurement)

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## ASC 350-980-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/350/980/#35-subsequent-measurement)

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#### Amortization of Goodwill

##### [350-980-35-1](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-1)

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Topic 350 states that goodwill shall not be amortized and shall be tested for impairment in accordance with that Subtopic. For rate-making purposes, a regulator may permit an entity to amortize purchased goodwill over a specified period. In other cases, a regulator may direct an entity not to amortize goodwill or to write off goodwill.

##### [350-980-35-2](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-2)

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If the regulator permits all or a portion of goodwill to be amortized over a specific time period as an allowable cost for rate-making purposes, the regulator's action provides reasonable assurance of the existence of a regulatory asset (see paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1)). That regulatory asset would then be amortized for financial reporting purposes over the period during which it will be allowed for rate-making purposes. Otherwise, goodwill shall not be amortized and shall be accounted for in accordance with Topic 350.

#### Long-Term Power Sales Contracts

##### [350-980-35-3](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-3)

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A long-term power sales contract that is not accounted for as a derivative instrument under Topic 815 shall be periodically reviewed to determine whether it is a loss contract in which the loss shall be recognized immediately.

##### [350-980-35-4](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-4)

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For long-term power sales contracts acquired in a purchase business combination, any premium related to a contractual rate in excess of the current market rate should be amortized over the remaining portion of the respective portion of the contract. For example, if the above market rate relates to the fixed or scheduled portion of the contract, the premium would be amortized over the remaining fixed period of the acquired contract.

##### [350-980-35-5](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-5)

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See paragraph [980-605-25-15](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-15) for a discussion of a long-term power sales contract that meets the definition of a derivative.