Handbook: Impairment of nonfinancial assets
Handbooks | SEPTEMBER 2025
KPMG in-depth guide to impairment testing, covering the models in ASC 350-20, ASC 350-30 and ASC 360.
Testing nonfinancial assets for impairment can be challenging – made more so by the need to navigate different impairment models. Using Q&As and examples, this guide explains in depth the impairment models for goodwill, indefinite-lived intangible assets and long-lived assets.
Applicability
- All companies
Relevant dates
- Effective immediately
Roadmap to impairment
Each impairment model has its own complexities in determining the unit of account, knowing when to test for impairment, and calculating the amount of any impairment loss. But while each model is independent, they are also inextricably linked – containing overlapping concepts and requiring a specific sequence in impairment testing.
This Handbook pulls together the three models to create a single roadmap to testing nonfinancial assets for impairment. We have organized the content to help you compare and contrast the different models.
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 goodwill amortization accounting alternative
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Impairment of nonfinancial assets
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