FASB staff clarifying comments on new goodwill impairment alternative

Apr 28, 2021
Audit Financial reporting

During the April 20, 2021 Private Company Council meeting, the staff of the Financial Accounting Standards Board (FASB) made clarifying comments related to the new goodwill impairment triggering event alternative provided in FASB Accounting Standards Update 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events. We believe these clarifying comments, which are summarized in our updated article, FASB provides goodwill impairment triggering event alternative, are consistent with the guidance we previously provided in that article related to the implications of an eligible entity electing the new alternative.