Roadmap
Goodwill and Intangible Assets
(September 2025)
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This Roadmap provides Deloitte’s
insights into and interpretations of the guidance in ASC 350-20 and ASC 350-30 on
the subsequent accounting for goodwill and intangible assets.
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 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.
Also available is Deloitte’s On the Radar:
Goodwill and Intangible Assets, which
provides a high-level summary of the guidance in ASC 350-20
and ASC 350-30 on the subsequent accounting for goodwill and
intangible assets.
Be sure to check out other titles in
Deloitte’s Roadmap
series, our comprehensive, easy-to-understand collection of
accounting guides on selected topics of broad interest to the financial reporting
community.