Handbooks | June 2021

 

Insight

Handbook: Impairment of nonfinancial assets

Latest edition: KPMG in-depth guide to impairment testing, covering the models in ASC 350-20, ASC 350-30 and ASC 360.

Julie Santoro

Julie Santoro

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1086

Nick Burgmeier

Nick Burgmeier

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5455


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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