FASB ASC 350 - SC 350 (previously SFAS No. 142) requires companies to use a process to measure the impairment of goodwill. The first step determines whether possible goodwill impairment should be recognized by comparing the fair value of the invested capital of a reporting unit with its book value (carrying value). If the appraised value is less than the carrying value, then the company must proceed to a second step in which the value of the impairment is determined. Similar to the accounting for an acquisition, this requires independent valuation of the business or group of assets at a “reporting unit” level, the allocation of the aggregate value of the reporting unit to its identifiable tangible and intangible assets, and to goodwill. The impairment is equal to difference between the book value of goodwill and the value of goodwill determined by the valuation.