Current FMV of assets and liabilities of non-goodwill assets is one of the factors affecting goodwill impairment valuations.

Question

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The current FMV of assets and liabilities of non-goodwill assets is considered when determining the fair value of a reporting unit, which is then compared to the carrying value of the reporting unit, including any goodwill. If the fair value is lower than the carrying value, then the difference is the amount of goodwill impairment. Therefore, the current FMV of assets and liabilities of non-goodwill assets is a factor affecting goodwill impairment valuations.

Current FMV of Assets and Liabilities of Non-Goodwill Assets Is