ASC 350 (Intangibles — Goodwill and Other)

Definition

The US GAAP standard governing the subsequent measurement of goodwill and other intangible assets after initial recognition in a business combination. ASC 350 requires annual impairment testing of goodwill and indefinite-lived intangible assets, permits an optional qualitative assessment before performing the quantitative impairment test, and provides guidance on the amortisation of finite-lived intangible assets. The 2017 simplification eliminated the second step of the goodwill impairment test, reducing complexity by measuring impairment as the excess of carrying amount over fair value of the reporting unit.