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Chapter 2 — Subsequent Accounting for Goodwill (After Adoption of ASU 2017-04)

2.2 Recognition and Measurement of an Impairment Loss

2.2 Recognition and Measurement of an Impairment Loss

In testing goodwill for impairment, an entity may first elect to perform a qualitative assessment (i.e., “step 0”) to determine whether it needs to perform the quantitative goodwill impairment test (see Section 2.3). The entity may, however, also elect to bypass the qualitative assessment and move directly to the quantitative test (i.e., “step 1”). If the entity decides to perform the qualitative assessment and determines that goodwill might be impaired, the entity must proceed to step 1.