Under Accounting Standards Codification (ASC) 350 (formerly SFAS No. 142), Intangibles-Goodwill and Other, requires a reporting entity to first assess goodwill for impairment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. If the reporting entity’s fair value is less than its carrying amount, the second step of the impairment test must be performed in order to measure the amount of the goodwill impairment, if any. Annually, companies are required to conduct an impairment test of goodwill and evaluate remaining useful lives of intangibles. Amortized intangibles are tested against undiscounted cash flows. Indefinite-lived intangibles are tested against fair value.
Brookline Valuation Services, Inc. professionals have performed goodwill impairment tests for many clients in a variety of industries. We work directly with the auditor to facilitate the review process and to minimize distractions for management. Our work is highly regarded by the Big Four as well as regional accounting firms. Our professionals are credentialed and experienced valuation consultants, and we prepare supportable analysis using accepted valuation methodology.