Perspectives

What happens when US GAAP and IFRSs clash?

The goodwill impairment dilemma

For acquisitive companies, determining whether goodwill booked in transactions has become impaired and if it has, by how much, is now a fairly regular occurrence.  Differences in the goodwill impairment standards under US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRSs) may create significant disparities as to whether goodwill is viewed as impaired and, if so, how much is written off in the United States and the other country, or even country to country. 

Explore the challenges companies may face in performing goodwill impairment testing in the US or around the world
Did you find this useful?