PODCAST

KPMG Financial Reporting Podcast: Impairment

Implications of COVID-19 on the impairment of nonfinancial assets.

Brian Fields

Brian Fields

Partner, Dept. of Professional Practice, KPMG US

+1 212-872-3397

Frederik Bort

Frederik Bort

Managing Director, Dept. of Professional Practice, KPMG (US)

+1 212-954-2980

Nick Burgmeier

Nick Burgmeier

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5455

Julie Santoro

Julie Santoro

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1086

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