What’s the issue?
Deciding to vacate or sub-let office space potentially indicates impairment, so companies need to assess the potential impacts for their financial reporting now.
Head of DPP Accounting
KPMG AZSA LLC
Actions for management to take now
Companies need to assess the potential impacts for their financial reporting now, because a decision to vacate or sub-let property is a potential indicator of impairment.
To help with this assessment, we provide insight and practical guidance in our guide to Testing leased office space for impairment, (PDF 522 KB) using ten key questions that companies might ask.
1 We have updated our guidance on how a company accounts for variable lease payments that depend on usage or sales and updated our examples to clarify the fact patterns and our analyses.
References to ‘Insights’ mean our publication Insights into IFRS.
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