Amendments to FASB’s Accounting Standards Update (ASU) 2017-04: Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment reduce the cost and complexity of evaluating goodwill for impairment, while aligning with IFRS. This self-study webinar reviews the new goodwill impairment testing procedures, including:
- Fair value measurement and changes to the disclosure requirements for fair value measurement
- Goodwill impairment and deferred tax considerations
- Fair value and goodwill SEC comment letters
- Private company and not-for-profit intangible and goodwill accounting alternatives
To update financial professionals on the accounting and disclosure rules associated with goodwill impairment testing and deferred tax considerations.
- ASU 2018-13: Changes to the Disclosure Requirements for Fair Value Measurement
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ASU 2017-04 (Topic 350): Simplifying the Test for Goodwill Impairment
– Replaces implied fair value of goodwill calculation with impairment charge based on excess reporting of units over fair value on excess of reporting units carrying amount over fair value - Goodwill disclosures required by the SEC
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ASU 2014-02 (Topic 350) Accounting for Goodwill
– An alternative for private and not-for-profit companies to account for goodwill subsequent to initial recognition -
ASU 2014-18 Business Combinations (Topic 805) Accounting for Identifiable Intangible Assets in a Business Combination
– Allows private companies to exclude certain intangible assets from separate recognition in a business combination - Recent SEC fair value and goodwill comment letters
• Identify key price assumptions used to determine fair value
• Recognize the rules for assigning liabilities to a reporting unit
• Identify the primary changes to goodwill impairment testing contained within ASU 2017-04
• Identify the current mandatory timing of goodwill impairment testing by public companies
• Recognize the current mandatory amortization period for goodwill and other intangible assets under federal tax law
• Identify the course developer’s recommendations regarding goodwill and goodwill impairment testing
• Identify the default amortization period for goodwill available to electing private companies and NFPs