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2016

FASB Proposes Amendments to Simplify the Accounting for Goodwill Impairment (May 24, 2016)

FASB Proposes Amendments to Simplify the Accounting for Goodwill Impairment

Heads Up | Volume 23, Issue 16
May 24, 2016
by Denise Lucas and Andrew Winters, Deloitte & Touche LLP
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On May 12, 2016, the FASB issued a proposed ASU1 that would remove step 2 from the goodwill impairment test. The proposed amendments, which are intended to simplify the accounting for goodwill impairment, would instead require an entity to ”recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, that amount should not exceed the carrying amount of goodwill allocated to that reporting unit.”

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