Accounting Standards Update · 2011
ASU 2011-08 — Intangibles—Goodwill and Other (Topic 350)
The amendments in this Update will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment.
Issued: September 15, 2011
Text as published in the FASB Accounting Standards Codification, Basic View.