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ASC 350 2017-09-19T22:44:26+00:00

Impairment Testing of Goodwill & Intangibles

ASC 350

When trigger events happen, get an ASC 350 Valuation. Companies must fulfill their ASC 350 Valuation needs by testing goodwill for impairment on at least an annual basis.

Annual Testing

An ASC 350 valuation requires goodwill and other indefinite lived intangible assets to be tested at least annually. However, if “trigger events”, material changes, or other circumstances identified by management occur, testing may be required more often.

Material Events

Testing can be required more often if material events (or “trigger events”) occur; such as: change in business/legal situation, loss of key people, business or asset sale/disposition, other impacts to inputs around assumptions of the value of the indefinite lived intangible assets.

Quantitative Or Qualitative

When fulfilling the ASC 350 valuation requirement, a two-step approach for testing can be taken: companies can elect a qualitative test (“Step 0”) or a quantitative impairment test (“Step 1 & Step 2”). The impairment testing must happen at the reporting unit level.

Choose The Right Advisor

In fulfilling the ASC 350 valuation requirements, your company needs to choose an advisory firm who understands the business and can work with your company’s auditors to ensure seamless testing and reporting for ASC 350 valuation requirements.

Questions About ASC 350 Valuations?

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