The AICPA's Financial Reporting Executive Committee (FinREC) has just issued a working draft of the AICPA Accounting and Valuation Guide Testing Goodwill for Impairment. Developed by the AICPA Impairment Task Force, the draft release provides non-authoritative guidance and illustrations for valuation specialists, preparers of financial statements, and independent auditors regarding goodwill impairment testing. Although it also includes some guidance from FASB ASU 2011-08, Testing Goodwill for Impairment(Sept. 2011), the AICPA working draft does not provide significant task force commentary or prepared examples to illustrate the qualitative assessment framework set forth in the FASB standard.
The AICPA Task Force is encouraging BV professionals and other interested parties to review the working draft and submit their informal feedback as well as their thoughts about the need for additional implementation guidance on FASB ASU 2011-08. The deadline for submitting comments is March 15, 2012. For more information, including a copy of the exposure draft and feedback forms, click here.
Look for more news from FinREC in the next couple of weeks, with its release of the working draft of the guide on Assets Acquired to Be Used in Research and Development Activities, which will replace the AICPA’s 2001 practice aid and for which the committee will also be seeking public comment.