FRV podcast: Impairment

Podcast overview

In this 30-minute podcast, specialists from KPMG’s Department of Professional Practice discuss the implications of COVID-19 on the impairment of nonfinancial assets and related controls and valuation issues.

Applicability

• All companies

Relevant dates

• Effective immediately

Podcast contents

• 01:25 – Overview of types of nonfinancial assets and approach to reevaluating in light of changing business plans
• 05:30 – Big picture considerations in assessing whether an asset is recoverable, including controls and projecting cash flows using a single best estimate vs multiple scenarios
• 09:40 – Impairment of goodwill, including control premiums, reconciliation to market capitalization and which stock price to use, and discount rates
• 17:50 – Impairment of long-lived assets (e.g. property, plant and equipment and leased (right-of use) assets), and other actions such as sale and abandonment
• 24:30 – Disclosure considerations