What major change does ASU No. 2014-02 propose regarding goodwill?

The correct answer highlights a significant shift in how goodwill is treated on financial statements. Under ASU No. 2014-02, the proposal is to begin amortizing goodwill over a period not exceeding 10 years. This amendment reflects an effort to simplify the accounting process and provide a more consistent approach to recognizing the cost associated with goodwill over time, rather than subjecting it to an indefinite life.

Amortizing goodwill helps in recognizing the wear and tear or the diminishing value of goodwill, making it more transparent for users of financial statements. This change aims to improve the relevance and reliability of financial information, assuring stakeholders that goodwill is systematically expensed over its useful life, rather than remaining on the balance sheet indefinitely.

The other choices suggest approaches that would either eliminate amortization or change the frequency of impairment testing. However, these do not align with the provisions of ASU No. 2014-02, which seeks to introduce a structured amortization process for goodwill instead of eliminating or over-testing it.