Information regarding the impairment of goodwill that specifically concerns Simon is related to the acquisition of Pizazz, Inc., (the leading manufacturer of hair color products in the U.S.) that occurred in 2016 and resulted Salon Solutions recording $125 million in goodwill related to this acquisition in 2016. After acquisition, Pizazz Inc. continues to operate as a separate company and is considered a reporting unit. At the end of 2017, events and circumstances indicated that it is more likely than not that the fair value of Pizazz is less than book value. Simon determined the following information pertaining to Pizazz: As of 12/31/17 the book value of Pizazzs net assets is $560 million, including the $125 million in goodwill. Pizazzs estimated fair value as of 12/31/17 is $445 million, and the fair value of all its identifiable tangible and intangible assets, excluding goodwill, is estimated to be $425 million. These estimates were based on prices of comparable businesses. Your firm has delegated to you the task of determining the treatment of goodwill impairment.works cited page)

1. What is the current standards that govern US GAAP treatment of goodwill?

2. What is the current standards that govern US GAAP treatment of goodwill impairment and how to determine the amount of the goodwill impairment loss using the data pertaining to Salon Solutions given above.

3. Prepare the journal entry to record the impairment loss and explain how this loss is reported on the income statement (ignore income tax effects). In addition, if an impairment loss is recorded, indicate the amount of goodwill to be reported on the statement of financial position as of 12/31/17.

4. Whether early adoption of the Financial Accounting Standards Board Accounting Standards Update (FASB ASU) 2017-04 is allowed, and if so, how to determine the amount of the goodwill impairment loss based on early adoption of FASB ASU 2017-04 using the goodwill data pertaining to Salon Solutions given above. Also, if applicable, prepare the journal entry to record the impairment loss per FASB ASU 2017-04 should Salon Solutions owner elect to adopt FASB ASU 2017-04 early. In addition, if an impairment loss is recorded, indicate the amount of goodwill to be reported on the statement of financial position as of 12/31/17.

5. The required financial statement note disclosures regarding goodwill impairment assuming Salon Solutions President elects to adopt FASB ASU 2017-04 early (ignore income tax effects).