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Chapter 3 — Goodwill Accounting Alternatives for Private Companies and NFPs

3.8 Disposal of a Portion of an Entity (or a Reporting Unit)

3.8 Disposal of a Portion of an Entity (or a Reporting Unit)

ASC 350-20
40-8 The following guidance for goodwill applies to entities within the scope of paragraph 350-20-15-4 that elect the accounting alternative for amortizing goodwill.
Disposal of a Portion of an Entity (or a Reporting Unit)
40-9 When a portion of an entity (or a reporting unit) that constitutes a business or nonprofit activity is to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amount of the business or nonprofit activity in determining the gain or loss on disposal. An entity shall use a reasonable and rational approach to determine the amount of goodwill associated with the business or nonprofit activity to be disposed of.