Is My Goodwill Still “Good”?

In the midst of the global COVID-19 pandemic, you may ask yourself if your goodwill is still “good.”  Important to an analysis of your company’s goodwill is an understanding of what effect the pandemic and resultant economic fallout has had on financial performance.

Generally, FASB ASC 350 requires goodwill to be tested at least annually for impairment or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  Such an event or change in circumstances is known as a triggering event.

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