Note 6 - Goodwill

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Goodwill Disclosure [Text Block]

Note

6

– Goodwill

       The Company accounts for goodwill in accordance with Accounting Standards Codification (ASC)

350,

Intangibles — Goodwill and Other

. Goodwill, which is not amortized for financial statement purposes, is amortized over a

15

-year period for tax purposes, but evaluated for impairment annually, or whenever events or changes in circumstances indicate that the value

may

not be recoverable. Considered factors for potential goodwill impairment evaluation with respect to Journal Technologies include the current year’s business profitability before intangible amortization, fluctuations of revenues, changes in the marketplace, the status of deferred installation contracts and new business, among other things.

In addition, ASU

2011

-

08,

Intangible – Goodwill and Others -- Testing Goodwill for Impairment

, allows for the option of performing a qualitative assessment before calculating the fair value of a reporting unit. If it is determined based on qualitative factors that there is no impairment to goodwill, then the fair value of a reporting unit is not needed. If a quantitative analysis is required and the unit’s carrying amount exceeds its fair value, then the

second

step is performed to measure the amount of potential impairment. The Company’s annual goodwill impairment analysis in fiscal

2016

did not result in an impairment charge based on the qualitative assessment. There was

no

indicator of impairment during the

three

-month periods ended

December

31,

2016

and

2015.