Hot Topic | April 2020



Coronavirus-related impairment of nonfinancial assets

Updated: FAQs on the impairment of goodwill and long-lived assets as a result of COVID-19.

Nick Burgmeier

Nick Burgmeier

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5455

Kevin Manson

Kevin Manson

Senior Manager, Dept. of Professional Practice, KPMG US

+1 212-954-6442

Justin Miller

Justin Miller

Managing Director, Dept. of Professional Practice, KPMG US

+1 631-425-6522

Julie Santoro

Julie Santoro

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1086

Now updated with FAQs, the Hot Topic addresses a company’s need to evaluate the recoverability of goodwill, intangible assets, property, plant and equipment, and lease right-of-use (ROU) assets. 


  • All companies 

Relevant dates

  • Effective immediately  

Key impacts

The COVID-19 outbreak is having a significant impact on global markets and its effects may trigger the need for companies to evaluate the recoverability of nonfinancial assets.

General questions that companies may be asking include:

  • Has our supply chain been disrupted so that we cannot procure raw materials or components for finished goods?
  • Has volatility in commodity prices negatively impacted revenues or production costs?
  • Have workforce limitations impeded our ability to manufacture products or service our customers?
  • What concessions have we provided to our customers?
  • Have we lost business due to event cancellations, store or facility closures, lower consumer sentiment, etc.?
  • Are operations being curtailed temporarily, or assets mothballed?
  • Have the circumstances significantly changed how we expect to use our long-lived assets?
  • Are our customers struggling to pay their obligations or even remain in business?
  • Has our stock price significantly decreased? 
  • Have we revised our earnings guidance downwards?

Report contents

  • Background
  • Goodwill
  • Other assets
  • Disclosures
  • Subsequent events

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