FASB announces effective date for goodwill impairment update


Just two weeks ago, the FASB issued Accounting Standards Update No. 2011-08,Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. More recently, the FASB announced that the amendments in this update will be effective “for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.” Early adoption is permitted, the FASB adds, “including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.”

Read Brad Pursel’s analysis of the new standard and its qualitative requirements in the November BVUpdate.


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