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When does a company perform a goodwill impairment test?

Under U.S. GAAP, a public company must test goodwill for impairment at least once annually. The company must use discretion to determine when the test is performed (i.e., what month?). The important thing to remember is that U.S. GAAP does indicate that the goodwill impairment test should be performed at the same time each year. For example, if the impairment test was performed on April 15, Year 1, then in Year 2, it should be performed on April 15.

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