Goodwill Impairment Testing: An Overview

The impairment test has been modified from a concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value, to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. The implication here is that an entity could record a goodwill impairment that is attributable to a decline in the fair value of non-goodwill assets.