August 12, 2011 9:12:19 am
FASB Approves Updated Standard for Goodwill Impairment Testing
The Financial Accounting Standards Board (FASB) has simplified accounting procedures for how an entity tests goodwill for impairment. The prior accounting procedures required entities to follow a two-step process. Under the new accounting standard, entities would only have to determine the fair value of a reporting unit if the entity determines, using qualitative factors, that it is more likely than not that its fair value is less than its carrying amount. The updated accounting standard also provides guidance on the types of factors that should be considered when conducting the assessment. FASB expects to issue a final Accounting Standards Update in September 2011.
For more information on the FASB’s updated accounting standard, please see Accounting Today.
Tags: Accounting Standards, Audit, Internal Audit
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