New chapter in FinRec's qualitative testing for goodwill impairment working draft

In its continuing effort to update the valuation and accounting guide, Testing Goodwill for Impairment (2011), the AICPA’s Financial Reporting Executive Committee (FinREC) has just issued a working draft of Chapter 2, “Qualitative Assessment.”

The new chapter discusses and illustrates how to perform the optional qualitative assessment, which, in turn, helps appraisers and auditors determine whether to perform the two-step, quantitative goodwill impairment test set forth in FASB ASC 350-20. The working draft of the new chapter is available here. Comments are due by Dec. 31, 2012.