The codification that addresses Goodwill is 350-20 and the codification that addresses the other intangible assets is 350-30. To continue, according to codification 350-20-20 goodwill is, “an asset representing the future economic benefits arising from other assets acquired in a business combination or an acquisition by a not-for-profit entity that are not individually identified and separately recognized”. In addition, according to codification 350-20-35-1, “Goodwill shall not be amortized. Instead, goodwill shall be tested for impairment at a level of reporting referred to as a reporting unit”. Furthermore, according to codification 350-20-35-48 “Subsidiary goodwill shall be tested for impairment at the subsidiary level using the subsidiary’s reporting units. If a goodwill impairment loss is recognized at the subsidiary level, goodwill of the reporting unit or units (at the higher consolidated level) in which the subsidiary’s reporting unit with impaired goodwill resides must be tested for impairment if the event that gave rise to the loss at the subsidiary level would more likely than not reduce the fair value of the reporting unit (at the higher consolidated level) below its carrying amount. Only if goodwill of that higher-level reporting unit is impaired would a goodwill impairment loss be recognized at the consolidated level”.
The authoritative guidance for asset impairments is on codification 360-10-35. The types of transactions to apply these standards are the following: “There are unique requirements of accounting for the impairment or disposal of long-lived assets to be held and used or to be disposed of”. According to codification 360-10-35 the following events would be a cause for an asset to be tested for impairment: “A significant decrease in the market price of a long-lived asset (asset group). A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical...
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