Preface | DART – Deloitte Accounting Research Tool

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We are pleased to present the 2025 edition of Goodwill and Intangible Assets. This Roadmap provides Deloitte’s insights into and interpretations of the guidance in ASC 350-201 and ASC 350-30 on the subsequent accounting for goodwill and intangible assets. This publication reflects guidance issued through June 30, 2025, and it is assumed that an entity has adopted 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). Since the amendments made by ASU 2017-04 are now effective for all entities, this publication does not address the application of step 2. It is also assumed in this Roadmap that entities have adopted ASU 2023-05, which provides guidance on joint venture formations that occur on or after January 1, 2025.

Under ASC 350-20, an entity recognizes a goodwill impairment loss when the carrying amount of a reporting unit that includes goodwill exceeds its fair value; the loss is limited to the amount of goodwill allocated to the reporting unit. While entities have been required to test goodwill for impairment for many years, the current goodwill accounting model has evolved significantly from the model that the FASB originally introduced in 2001. The FASB has issued numerous Accounting Standards Updates (ASUs) on this topic, which were generally intended to simplify or reduce the cost and complexity of performing goodwill impairment testing. However, despite the FASB’s simplification efforts, entities continue to need to use significant judgment in accounting for goodwill.

Under ASC 350-30, an entity must estimate the useful life of an intangible asset, which may be finite or indefinite. An intangible asset that is finite-lived is subject to amortization over its useful life to the entity and is subject to impairment testing in accordance with ASC 360-10. By contrast, an intangible asset that is indefinite-lived is not subject to amortization and is subject to impairment testing in accordance with ASC 350-30, which requires that the entity compare the fair value of the intangible asset with its carrying amount and recognize an impairment loss for any excess.

Be sure to check out On the Radar (also available as a stand-alone publication), which briefly summarizes emerging issues related to the accounting and financial reporting topics addressed in the Roadmap.

Note that this Roadmap is not a substitute for the exercise of professional judgment, which is often essential to applying the requirements of ASC 350-20 and ASC 350-30. It is also not a substitute for consulting with Deloitte professionals on complex accounting questions and transactions.

We hope that you find this publication a valuable resource when considering the accounting for goodwill and intangible assets.

Footnotes

For the full titles of standards, topics, regulations, and abbreviations used in this publication, see Appendixes B and C.

Confidential and Proprietary — for Use Solely by Authorized Personnel

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.