NEW ACCOUNTING & AUDITING STANDARDS:
ASU 2011-08: Testing Goodwill for Impairment
Effective for fiscal years beginning after 12/15/11 with early adoption allowable.
- Allows an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
- After assessment, an entity that determines it is not more like than not an impairment has not occurred should perform the two-step impairment test.
If you have any questions as to whether any of these new standards or any existing standards apply to you business please contact either your Kiesling representative or nearest office.