U.S. GAAP allows companies to make a qualitative evaluation annually to determine whether it is more likely than not that a reporting unit's goodwill is impaired.

Question

Quizplus · Accepted Answer

U.S. GAAP permits companies to perform a qualitative assessment, known as the "Step 0" test, to evaluate if it is more likely than not that the fair value of a reporting unit is less than its carrying amount, indicating potential goodwill impairment.

US GAAP Allows Companies to Make a Qualitative Evaluation Annually