Handbooks | August 2024
Latest edition: 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. This latest edition includes updated interpretive guidance based on our continued practical experience.
Testing nonfinancial assets for impairment can be challenging – made more so by the need to navigate different impairment models: goodwill under Subtopic 350-20, indefinite-lived intangible assets under Subtopic 350-30, and long-lived assets under ASC 360.
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.
We hope you find this Handbook useful in understanding the relationship between the impairment models, and ultimately that it helps you navigate the challenges of impairment testing.
Impairment of nonfinancial assets
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Navigating impairments in the current environment
We discuss recent developments in assessing goodwill, indefinite-lived assets and long-lived assets for impairment.
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