Goodwill is amortized under US GAAP

Definition: Since SFAS 142 (2001, now ASC 350), goodwill is not amortized under US GAAP for public companies. Instead it is tested for impairment at least annu…

Reality

Since SFAS 142 (2001, now ASC 350), goodwill is not amortized under US GAAP for public companies. Instead it is tested for impairment at least annually. (Private companies may elect to amortize over ≤10 years under ASU 2014-02.)

Why It MattersUnderstanding why "goodwill is amortized under us gaap" is a misconception helps avoid analytical errors and improper financial decision-making.
CategoryIntangibles

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