Goodwill can be amortized over 10 years or less, in which case the impairment test is simplified in addition to being trigger-based. In 2016 the FASB launched a project to simplify goodwill impairment testing for all companies, while maintaining its usefulness. This is a two-phase project.

Can goodwill be Amortised?

Goodwill amortization refers to the gradual and systematic reduction in the amount of the goodwill asset by recording a periodic amortization charge. ... If a business elects to amortize goodwill, it has to keep doing so for all existing goodwill, and also for any new goodwill related to future transactions.

Can goodwill be amortized over 10 years?

In accounting, goodwill is accrued when an entity pays more for an asset than its fair value, based on the company's brand, client base, or other factors. ... Now, private companies can elect to amortize goodwill on a straight-line basis over 10 years, although this election is not required.