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As discussed in ASC 350-20-45-2, the aggregate amount of goodwill impairment losses should be presented as a separate line item on the income statement within continuing operations unless a goodwill impairment is associated with a discontinued operation. Disclosure is required for each goodwill impairment loss recognized.

ASC 350-20-50-2

For each goodwill impairment loss recognized, all of the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized:

  1. A description of the facts and circumstances leading to the impairment
  2. The amount of the impairment loss and the method of determining the fair value of the associated reporting unit (whether based on quoted market prices, prices of comparable businesses or nonprofit activities, a present value or other valuation technique, or a combination thereof)
  3. If a recognized impairment loss is an estimate that has not yet been finalized (see paragraphs 350-20-35-18 through 35-19), that fact and the reasons therefore and, in subsequent periods, the nature and amount of any significant adjustments made to the initial estimate of the impairment loss.

This information should continue to be disclosed in the footnotes until the impairment loss is no longer presented.
ASC 820-10-50 indicates that measurements based on fair value (e.g., impairments of goodwill under ASC 350) are also subject to the disclosure requirements in ASC 820. Required disclosures include the fair value measurement, relevant measurement date, reasons for the fair value measurement, valuation techniques, and information about the inputs to the fair value measurement, including significant unobservable inputs.
ASC 820-10-50-2(bbb) requires quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy. These disclosures are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination. Refer to FSP 20.3.1 for details regarding the general fair value disclosure requirements.
In addition to the fair value measurement disclosures, ASC 275-10-50 requires a reporting entity to disclose its use of estimates when the resolution of matters could differ significantly from what is currently expected, and if it is reasonably possible that the estimates will change in the near term and the effect of the change will be material. Disclosure may also be required under ASC 275 even if a reporting entity concludes that an impairment charge is not required. Refer to FSP 24.3.3 for further information about the requirements of ASC 275.
New guidance
Upon adoption of ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying theAccounting for Goodwill Impairment, ASC 350-20-50-2(c) is superseded.
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