Which of the following statements about goodwill amortization under FASB ASC 350 is true?

Goodwill is subject to regular impairment testing under FASB ASC 350, which is the correct statement. This accounting standard requires companies to assess goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that it may be impaired. Unlike other intangible assets, goodwill is not amortized over a specific period. Instead, companies must evaluate the carrying value of goodwill against its fair value; if the carrying value exceeds its fair value, an impairment loss must be recognized.

The practice of assessing goodwill impairment ensures that a company's financial statements accurately reflect the value of its intangible assets and that shareholders and stakeholders are presented with a true picture of the company's financial health. This requirement emphasizes the importance of ongoing evaluation of goodwill rather than simply writing it off over time through amortization.

This understanding contrasts with other options regarding amortization and accounting treatment, which do not align with current standards in accounting principles set by FASB ASC 350.