Goodwill — ASC 350 vs IAS 36

Goodwill is not amortized under either framework (a private-company election aside under US GAAP) and is tested for impairment at least annually — but the unit of account and the test mechanics differ.

Area	US GAAP (ASC 350)	IFRS (IAS 36)
Unit of account	Reporting unit	Cash-generating unit (CGU) or group of CGUs
Test	Single-step (post-ASU 2017-04): impairment = carrying − fair value of the reporting unit	One-step IAS 36: carrying vs recoverable amount of the CGU
Amortization	No (private companies may elect to amortize)	No
Reversal	Prohibited	Prohibited (for goodwill)
Frequency	Annual + on triggers	Annual + on triggers

The reporting-unit vs CGU difference, and the single-step (reporting-unit fair value) vs IAS 36 recoverable-amount mechanics, can produce different impairment conclusions for the same business.

• Reporting unit / CGU identification and goodwill allocation.
• Fair value of the reporting unit (US) / recoverable amount of the CGU (IFRS) — the cash-flow forecasts and discount rates behind them.
• Triggering events between annual tests.

• SAP implementation: SAP Group Reporting (consolidation) — goodwill tracked at the consolidation-unit level. Write-up forthcoming under SAP & Enterprise Systems. See also PP&E and Impairment for long-lived assets.

An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 350 / IAS 36 directly.