The Financial Accounting Standards Board (FASB) has approved an amendment which may simplify how goodwill impairment is tested. The new amendment will allow entities to determine, based on qualitative factors, whether it is necessary to perform the two step quantitative goodwill impairment test. The quantitative analysis will only have to be performed if it is more likely than not that the entity's fair value is less than its carrying amount.

FASB's amendment is in response to concerns expressed by private companies regarding the cost and complexity of performing goodwill impairment tests.  The amendment will be effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.

The final Accounting Standards Update is expected to be issued by FASB in September 2011.

The Financial Accounting Standards Board (FASB) will be hosting two public roundtable meetings this fall to discuss issues relating to existing private company accounting and reporting standards. The purpose of the meetings is to engage a wide variety of stakeholders, including private companies, their CPA practitioners, and users of private company financial statements, in discussions about private company accounting and reporting issues. Topics to be discussed are expected to include accounting and disclosure requirements related to variable interest entities, interest rate swaps, and level 3 fair value measurements. 

The meetings are scheduled for October 11, 2011 and October 17, 2011.

See roundtable meetings for more information or to register for the meetings.