Companies must evaluate their goodwill for impairment at least annually; however, during interim periods (for those reporting interim results), a goodwill impairment analysis could be necessary if the entity has an indication that the fair value of a reporting unit has fallen below its carrying value, a condition defined by the guidance as a triggering event.
Similarly, companies may need to test long-lived assets for impairment as events or changes in circumstances indicate that the carrying amount of an asset(s) may not be recoverable.
Both impairment analyses require a great deal of judgement, and oftentimes significant effort.
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