ASC 350 valuation is the process of reviewing goodwill and indefinite-lived intangible assets to confirm that their recorded values are still supported by current business and market conditions. This review is performed at the reporting-unit level and helps determine whether an impairment adjustment is needed under the US GAAP.
The analysis looks beyond just book values. It considers how the business is performing today, how market forces are shifting, and what future cash flows are expected from each reporting unit. If the fair value is found to be lower than the carrying amount, an impairment loss is recognized to keep financial statements accurate and transparent.
We, at AcumenSphere, follow a structured, audit-ready approach that helps companies evaluate their assets accurately, ensuring that reported values remain aligned with economic reality.
Here’s how we support your ASC 350 requirements:
- Comprehensive goodwill and intangible asset impairment assessments
- Fair value analysis at the reporting-unit level, aligned with the US GAAP
- Clear, audit-ready documentation for smooth review cycles
- Forward-looking insights to support management planning
- Practical guidance for market, operational, and financial triggers
With reliable expertise in fair value measurement and impairment testing, we help your business maintain accuracy and transparency in financial reporting.
The Purpose Behind ASC 350 Valuation
ASC 350 valuation serves several key objectives that help companies maintain accurate financial reporting and uphold US GAAP requirements. Its purpose extends beyond compliance, offering meaningful insights into the economic value of goodwill and intangible assets.The Purpose behind ASC 350 valuation includes:
Ensuring Adherence to US GAAP (ASC 350)
ASC 350 requires businesses to assess goodwill and indefinite-lived intangibles for impairment. A valuation ensures these assets are reviewed consistently and reported correctly.
Evaluating Goodwill and Indefinite-Lived Intangible Assets
The process identifies whether the fair value of a reporting unit or intangible asset has declined, helping prevent overstated asset values.
Supporting Transparent Financial Reporting
Accurate impairment testing strengthens the quality of financial statements, reduces audit challenges, and enhances investor and lender confidence.
Identifying and Managing Impairment Risk
Early detection of potential impairment helps companies avoid unexpected write-downs and supports better strategic and operational planning.
Our team at Acumensphere provides a disciplined ASC 350 framework that helps companies navigate impairment testing with clarity and complete confidence.
Typical Intangible Assets Covered Under ASC 350
ASC 350 applies to a wide range of intangible assets that require periodic evaluation to ensure they reflect fair value. These assets often play an important role in post-acquisition reporting and long-term financial performance. Typical intangible assets covered under ASC 350 include:
Goodwill
Arising from business combinations, goodwill is tested annually or when impairment indicators appear.
Indefinite-Lived Intangible Assets
Assets without a predictable life, such as trademarks, trade names, and certain licenses, must be assessed for impairment instead of being amortised.
Customer-Related Intangibles
Customer relationships and customer lists may require impairment testing if they are classified as indefinite-lived.
Technology and Intellectual Property Assets
Patented technologies, proprietary software, and other intellectual property often carry significant value and require regular fair value assessment.
Brand and Marketing Assets
Brand value, trade names, and other marketing-related intangibles must be evaluated for impairment if they are not amortised.
By evaluating each asset category with precision, AcumenSphere helps businesses maintain accurate valuation and compliance across all ASC 350 requirements.
How Do We Conduct ASC 350 Valuations at AcumenSphere?
AcumenSphere follows a clear and defensible valuation process that ensures full compliance with ASC 350 requirements. Our approach blends technical expertise, industry knowledge, and rigorous analysis to deliver accurate and audit-ready results.Here’s how our structured process brings clarity and confidence to every ASC 350 assessment:
Define Reporting Units and Scope
We begin by identifying reporting units and determining which goodwill and intangible assets fall within the scope of ASC 350 testing.
eview Financial Performance and Market Conditions
Our team evaluates internal performance, market trends, cash flow patterns, and industry risks to determine the likelihood of impairment.
Conduct a Qualitative Assessment
Where applicable, we perform a qualitative review to assess whether further quantitative testing is required.
Perform Quantitative Impairment Testing
If needed, we measure the fair value of reporting units using proven valuation methods such as the income approach, market approach, or cost approach.
Compare Fair Value with Carrying Amount
We determine whether goodwill or intangible assets are impaired by comparing fair value with the carrying amount on the financial statements.
Document Assumptions and Prepare Audit-Ready Reports
All valuation methods, assumptions, and results are thoroughly documented to ensure transparency, compliance, and smooth audit review.
When Should Your Company Commission an ASC 350 Valuation?
ASC 350 valuations are essential for ensuring goodwill and intangible assets reflect fair value. While annual testing is mandatory under US GAAP, certain events require immediate assessment to prevent unexpected impairment losses.
You should commission an ASC 350 valuation with AcumenSphere when:
- Annual impairment testing is due
- Financial performance or profitability declines
- Market or industry conditions show signs of deterioration
- Significant customer loss or operational challenges arise
- The company undergoes restructuring, divestitures, or leadership changes
- There is a sharp drop in share price or market capitalisation
- A new acquisition requires accurate goodwill allocation and post-deal monitoring
Timely valuations strengthen financial transparency, support audit readiness, and reduce the risk of earnings surprises. AcumenSphere ensures every assessment is thorough, compliant, and aligned with current reporting requirements.
How AcumenSphere Adds Value to ASC 350 Valuation
AcumenSphere delivers ASC 350 valuations with accuracy, compliance, and clear financial insight. Our team combines technical expertise with practical industry understanding to ensure every assessment is reliable, audit-ready, and aligned with US GAAP.Here’s why companies across globe trust AcumenSphere with their ASC 350 valuation needs:
Expertise in Goodwill Impairment
We have a strong grasp of ASC 350 requirements, reporting unit fair value analysis, and impairment triggers. Our approach helps you stay compliant and reduces the risk of misstatements.
Accurate and Audit-Ready Reports
Each valuation is supported with clear assumptions, structured documentation, and defensible methodologies that make the audit process smoother and more predictable.
Advanced Valuation Techniques
We use data-driven cash flows, market benchmarks, and industry-aligned valuation models to provide fair value conclusions that reflect real economic conditions.
Experience Across Industries and States
Our team works with companies in technology, manufacturing, retail, healthcare, fintech, SaaS, and other sectors across the United States, giving us broad insight into market trends and operational risks.
Advisory Support Beyond the Valuation
We guide management through impairment indicators, reporting considerations, and communication with auditors and stakeholders. Our support extends throughout the year, not just during testing.
AcumenSphere offers a dependable and transparent process that helps businesses maintain financial accuracy, meet regulatory expectations, and make informed decisions with confidence.
Get Expert ASC 350 Valuation Services with AcumenSphere
Whether you need to assess goodwill impairment, value intangible assets, or prepare for your annual ASC 350 test, AcumenSphere ensures a smooth, accurate, and fully compliant process. Our team guides you through every stage, from identifying impairment indicators to delivering audit-ready valuation reports that support stronger financial decisions.
Plan with confidence. Assess with accuracy. Strengthen your financial reporting with expert support.
Other Valuation Services We Offer
- 409A Valuation
- ASC 805 Valuations
- ASC 820 Valuations
- ASC 350 Valuations
- Commercial Valuations
