1.1 Overview

This Roadmap addresses the accounting for goodwill and intangible assets after their initial recognition. In this publication, it is assumed that an entity has adopted the guidance in ASU 2017-04, which simplifies the accounting for goodwill impairments by eliminating the requirement for entities to calculate the implied fair value of goodwill whenever the carrying amount of a reporting unit exceeds its fair value (i.e., step 2 of the goodwill impairment test). Because the amendments made by ASU 2017-04 are now effective for all entities, this publication does not address the application of step 2 (see Section 1.2.2 for more information).

ASC 350-20 addresses the subsequent accounting for goodwill and refers to two accounting models used in the subsequent accounting for goodwill that is initially recognized in accordance with the guidance described above:

The “general goodwill model,” which applies to (1) PBEs and (2) private companies and NFPs that have not elected the accounting alternatives for goodwill. Chapter 2 addresses the general goodwill model.
The “goodwill accounting alternatives,” which private companies and NFPs may elect as accounting policies. The goodwill accounting alternatives differ significantly from the general goodwill model. Chapter 3 addresses the goodwill accounting alternatives available to private companies and NFPs.

This Roadmap also addresses the subsequent accounting for intangible assets (see Chapter 4). ASC 350-30 addresses the subsequent accounting for both finite-lived (i.e., amortizing) intangible assets and indefinite-lived (i.e., nonamortizing) intangible assets. ASC 350-30 also addresses subsequent impairment testing of indefinite-lived intangible assets. However, finite-lived intangible assets are subsequently tested for impairment in accordance with ASC 360-10.

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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.