Close Management

Goodwill Impairment Analysis Template

Test goodwill for impairment by comparing fair value of reporting units to their carrying amounts.

How to use this template

1

Identify reporting units

Determine which operating segments represent separate reporting units for goodwill testing purposes.

2

Estimate fair value of reporting unit

Use market data, comparable transactions, or discounted cash flow analysis to estimate fair value.

3

Compare to carrying amount

Determine whether the fair value of the reporting unit exceeds its carrying amount including goodwill.

4

Document impairment conclusion

Record whether goodwill is impaired and prepare supporting documentation for the analysis.

Why use this template

  • Ensures goodwill is tested for impairment per ASC 350
  • Prevents overstated intangible asset balances
  • Provides audit support for significant judgments in valuation
  • Protects against future goodwill write-downs

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