The “dreaded” Step 2 of the goodwill impairment test for public companies is on its way out, according to a report in Compliance Week. The Financial Accounting Standards Board has tentatively decided to drop Step 2 to make things simpler for public firms. According to the report, the FASB decided to revisit the issue when it approved rules for private companies that no longer require annual testing for goodwill impairment. Private companies can amortize goodwill over 10 years but must do an impairment test under certain conditions.