Should Galaxy have performed an interim step 1 of the goodwill impairment test on September 30, 20X2, instead of only performing a qualitative assessment test?

Identify and quote the specific paragraph(s) from the FASB Standards Codification applicable to this situation.

 Based on the ASC paragraph(s) you identified in requirement (1), explain in your own words:

Under what condition a company would be required to perform step 1 goodwill impairment test in the interim period?

Under what condition(s) would a company not be required to perform step 1 goodwill impairment test in the interim period?

Within the context of the Galaxy Sports, Inc. case, would Galaxy be required to perform step 1 goodwill impairment test in the interim period of September 30, 20X2?

Explain why or why not. You must provide persuasive arguments based on the ASC paragraphs you quoted in requirement (1) AND information/fact provided in the case, as to why the alternative you select is more appropriate than the other.

Answer rating: 100% (QA)

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