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Goodwill impairment discussion.FASB Drops Step 2 from Goodwill impairment TestSummary: In June 2016, FASB proposed a change to goodwill accounting that would remove step 2 impairment testing aimed at measuring the implied fair value of goodwill. At that time, the proposed ASU, which is intended to simplify the accounting for goodwill impairment, would instead require an entity to “recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, that amount should not exceed the carrying amount of goodwill allocated to that reporting unit.”READ:FASB Proposes Amendments to Simplify Goodwill Impairment Accountingby: Deloitte CFO Journal Editor; June 17, 2016Reviewed By: Linda Christiansenhttp://deloitte.wsj.com/cfo/2016/06/17/fasb-proposes-amendments-to-simplify-goodwill-impairment-accounting/?mod=djem_jiewr_AC_domainidIn January 2017, FASB issued an Accounting Standard Update.READ: Accounting Standards Update No. 2017-04, Intangibles—Goodwill and Other (Topic 350):Simplifying the Test for Goodwill Impairment: http://www.journalofaccountancy.com/news/2017/jan/fasb-goodwill-impairment-testing-201715930.htmlScan (for now): FASB Accounting Standard Update No. 2017-04, Januaryhttp://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168778106&acceptedDisclaimer=trueStudents are advised to thoroughly read and understand the new ASU before completing the writing assignment / case study.Randomly select and answer 1 of the following statements to spark class discussion:Reminder: the goal is to engage with your classmates; simply posting your answer is insufficient to earn credit for discussionsDiscuss the meaning of goodwill impairment and how it is computed under current accounting standards.Notice the sentences and sections of the new ASU that have been crossed out in the document above that you scanned and evaluate the process from releasing the proposed change in accounting standard to the issuance of the new ASU.Discuss how IFRS rules are similar to or differ from GAAP accounting for goodwill impairment.Discuss the concept of implied fair value.Related article:To the Point:FASB Simplifies the accounting for goodwill impairmentBy EY.com; Jan. 27, 2017