Reduce Quarter and Year-End Inefficiencies in Goodwill Impairment Assessment
A structured quarterly record of reporting-unit performance — calibrated to the transactions that created goodwill and ready for auditor and SEC review.
The auditor's responsibilities with respect to data and significant assumptions generally are:
- Test the accuracy and completeness of company-produced data.
- Evaluate whether the significant assumptions are reasonable.
- Evaluate assumptions based on the company's intent and ability to carry out a particular course of action.
Built for goodwill fair value support.
- Efficient quarterly tracking of each reporting unit ("RU") performance.
- Ongoing calibration to the original transaction(s) that created goodwill.
- Shepherding the data gathering process in preparation for audit review and disclosure narratives in SEC filings.
- Reduce the back-and-forth between the company and the audit team reviewing fair value estimates.
“Evaluate the reasonableness of observable and unobservable inputs used — and whether the inputs represent the assumptions that market participants would use.”
Nick Says captures the contemporaneous evidence behind each Level 3 input — the current market conditions, the calibration to the original transaction, and the methodology record that withstands auditor scrutiny.
Structured workflow, from inputs to audit evidence.
Cash flow forecasts, margins, and growth rates. Estimates, KPIs, and milestones.
Longest and most intensive for Level 3 inputs — we help you prepare the evidence auditors need.
Efficient record-keeping of Level 3 inputs and ongoing calibration quarter after quarter.
Better track and document contemporaneous evidence of current market conditions and the impact on internal forecasts (unobservable inputs).
Goodwill testing remains a top area of focus in SEC comment letters — and the evidence trail is the first things reviewers request.
Goodwill testing remains a top area of focus in SEC comment letters.
| Rank | Topic | Relative change vs prior period | Absolute change vs prior period |
|---|---|---|---|
| 1 | Non-GAAP measures | ||
| 2 | Management's discussion and analysis | ||
| 3 | Segment reporting | ||
| 4 | Revenue recognition | ||
| 5 | Goodwill and other intangibles | ||
| 6 | Business combinations | ||
| 7 | Inventory and cost of sales | ||
| 8 | Debt, quasi-debt, warrants and equity | ||
| 9 | Fair value measurement | ||
| 10 | Disclosure controls and ICFR |
- 1Management's discussion and analysis
- 2Non-GAAP financial measures
- 3Segment reporting
- 4Revenue recognition
- 5Goodwill and intangible assets
Rankings reflect SEC comment letters issued to registrants with market capitalization of $75M or more on Forms 10-K and 10-Q from 1 July 2024 through 30 June 2025, excluding SPACs and other blank-check entities.
Sources: “SEC Reporting Update,” 2025, Ernst & Young, September 11, 2025; “SEC Comment Letter Considerations, Including Industry Insights,” Deloitte, November 2025; “SEC Comment Letter Trends,” PwC, November 6, 2025.
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Bring structure, continuity, and a methodology record to your quarterly fair value practice.