AICPA Issues Draft Goodwill Impairment Guide

    On November 4, 2011, the AICPA’s Financial Reporting Executive Committee issued a working draft of the AICPA Accounting and Valuation Guide – Testing Goodwill for Impairment. The draft, developed by the AICPA Impairment Task Force, provides non-authoritative guidance and illustrations regarding goodwill impairment testing for valuation specialists, preparers of financial statements, and independent auditors. Although it includes some guidance from Accounting Standards Update 2011-08, Testing Goodwill for Impairment (recently issued in September 2011), the working draft does not provide significant task force commentary or prepared examples to illustrate the qualitative assessment framework set forth in the ASU. The AICPA requests informal feedback on the working draft by March 15, 2012.