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Decisions Reached on Goodwill Impairment and Business Definition

At its October 10 meeting, the Financial Accounting Standards Board (“FASB”) discussed its proposed Accounting Standards Update (“ASU”), Intangibles—Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The FASB used feedback to reach decisions on related matters such as the impairment test, reporting units with zero or negative carrying amounts, the fair value guidance, and the transition and effective date for the upcoming ASU.

Also at the meeting, the FASB continued talks on its proposal for clarifying the definition of a business. Redeliberations on the proposed ASU, Business Combinations (Topic 805): Clarifying the Definition of a Business, covered transition and transition disclosures, the effective date, and guidance for early adoption.

A complete recap of the FASB’s tentative decisions from October 10 is available on

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