Goodwill Impairment Testing — Insights and Guidance

Every company that carries goodwill on its balance sheet — which includes virtually every business that has completed an acquisition — is required to test that goodwill for impairment at least annually under ASC 350. For PE-backed companies with multiple acquisitions across a hold period, goodwill impairment testing is a recurring compliance requirement that follows every deal. This hub brings together our practical guidance on navigating the testing process correctly.

What This category covers

The articles in this section address goodwill impairment testing from the perspective of PE-backed companies and corporate acquirers — annual testing requirements, the choice between qualitative and quantitative assessments, reporting unit determination, triggering event identification, and the private company alternatives available under the FASB’s Private Company Council guidance.

Our ASC 606 Revenue Recognition Services

For companies that need support with annual testing or a triggering event assessment, our Goodwill Impairment Testing Services provide the analysis, valuation specialist coordination, and documentation your auditors require.