Considerations for Early Adoption of Goodwill Impairment

Thoughtware Article Published: May 04, 2017
Transceiver towers

Executive Summary

Accounting Standards Update 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, eliminates Step 2 of the goodwill impairment test and changes the impairment loss calculation for all reporting entities that have goodwill reported in their financial statements and have not elected the private company alternative. Although simplified, there are items to consider before adopting the standard early. Those include planned changes to the composition of reporting units and adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Early adoption of ASU 2017-04 is permitted for interim or annual goodwill impairment tests performed with a measurement date after January 1, 2017.

PDF Download

Related Thoughtware

Kate & Ben — How can we help you? Contact Us!

How can we help you?