FASB Statement 141 holds that

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FASB Statement 141 requires that goodwill be regularly evaluated for impairment. This means that companies must determine whether the fair value of their reporting units has declined below their carrying value and record an impairment charge if necessary. The statement does not require or allow for the amortization of goodwill, and it does not prohibit the creation of goodwill in merged financial statements. However, the Financial Accounting Standards Board (FASB) has issued newer guidance, such as Accounting Standards Update (ASU) 2017-04, which changes the accounting for goodwill and intangible assets acquired in a business combination.

FASB Statement 141 Holds That