This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
Goodwill Impairment Test Simplified
The Financial Accounting Standards Board’s simplification initiative has extended to accounting for goodwill. Step 2 of the goodwill impairment test is eliminated and entities will use a one-step goodwill impairment test that compares a reporting unit’s fair value with its carrying amount to identify the existence of potential impairment and the amount of impairment loss. Entities are permitted to apply the guidance to any impairment tests performed after January 1, 2017.