Handbook: Impairment of nonfinancial assets

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 additional guidance related to the measurement of a reporting unit’s fair value in testing goodwill for impairment.

Applicability

• All entities

Relevant dates

• Effective immediately

Key impacts

• FASB’s relief on the goodwill impairment testing date for private companies and not-for-profit entities (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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