Handbooks | June 2021
Using Q&As and examples, this guide explains in depth the impairment models for goodwill, indefinite-lived intangible assets and long-lived assets. This latest edition includes the FASB’s relief on the goodwill impairment testing date for private companies and not-for-profits.
Applicability
- All entities
Relevant dates
| Effective date of ASU 2021-03 | Private companies and NFPs |
|---|---|
Annual periods – Fiscal years beginning after |
Dec. 15, 2019 |
Interim periods – In year of adoption |
The earliest interim period in the year of adoption for which financial statements have not been issued (or made available for issuance) |
Early adoption permitted? |
Yes, for interim or annual financial statements that have not been issued (or made available for issuance) |
Key impacts
- Updated for the FASB’s relief on the goodwill impairment testing date for private companies and NFPs (ASU 2021-03)
- Goodwill under ASC 350-20
- Indefinite-lived intangible assets under ASC 350-30
- Long-lived assets under ASC 360
Report contents
- Scope of impairment models
- The unit of account
- When to test
- Carrying amount
- Qualitative assessment
- Recoverability test: Long-lived assets
- Fair value measurement
- Recognition and allocation
- Disclosures
- Private company and not-for-profit alternative
- Before ASU 2017-04
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