If you want to learn more about the impairment accounting requirements for these three types of non-financial assets, you`ve come to the right place! This page serves as a one-stop shop for all your impairment needs and includes a discussion of related accounting issues, links to our various blog posts and e-learning courses on impairment, as well as additional links to accounting firms` Big 4 resources on GAAP and U.S. IFRS. Note that the depreciation of financial assets is covered on a separate thematic page. Depreciation: PP&E and intangible assets – An impairment occurs when the carrying amount of an asset exceeds its fair value, but not all impairments are recognized in the financial statements. Determining whether an asset or group of assets is impaired requires a significant level of judgment and an understanding of the requirements of the various impairment tests in U.S. GAAP. Do not worry. This CPE-eLearning course (1.5 CPE) is for you! After discussing the scope of the impairment guidelines and the concept of asset groups, this online course will guide you through the “trigger-based” impairment test in ASC 360 applicable to TANGIBLE and intangible assets with limited lifespan. What about intangible assets with an indefinite lifespan? We also cover this when we go through the guide in ASC 350. The online course concludes with a review of the U.S. GAAP presentation and disclosure requirements for impairments. If you`re looking for tips on how to test goodwill for impairment, you won`t find it in this course. We have a separate eLearning course dedicated to this topic.
As mentioned earlier, the audit requirements for the impairment of long-lived assets, indefinite intangible assets, and goodwill are different. Therefore, it is important to know what advice governs the type of asset you are testing and when testing is needed! Download the PEA Report: Disclosure Requirements for Property, Plant and Equipment Impairment occurs when the carrying amount of an asset exceeds its fair value; However, calculating a loss in value requires a significant estimate and valuation. Various closing accounts such as long-lived assets, intangible assets (finite life and indefinite life) and goodwill all need to be audited for depreciation, but these types of non-financial assets all have different impairment accounting requirements! Therefore, it is important to understand the requirements for the following types of non-financial assets: We are continuing our reports on issues for further consideration (MFC) as part of a peer review with our first review of CFMs for 2021 with respect to disclosure requirements for tangible capital assets (PP&E). We found an above-average number of MFCs related to PP&E disclosures. Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 360, property, plant and equipment, provides guidance on the presentation and disclosure of sustainable assets. This report discusses these requirements and provides asset impairments (Part I): IAS 36 – Impairments affect firms in all sectors and can occur frequently. Since determining whether there is a loss in value varies by type of asset and often requires significant judgment, it is essential to understand the guidelines! This price (1.0 EPC) examines the requirements of IAS 36 Impairment of Assets, including understanding when to verify impairment, at what level the test should be performed, and the correct order in which to examine various assets for impairment. Additional Information For disposals reported as discontinued operations, SEC registrants must consider the impact of the retroactive amendment on the historical financial statements contained in their foreign exchange act reports (p. e.g., Forms 10-K and 10-Q) and in registration declarations under the Securities Act (e.g., registration declarations on Form S-3) and other non-public offerings. Registrants may also be required to report an assignment, including certain divestitures that are not considered discontinued operations, on a Form 8-K and to provide pro forma financial information that gives effect to the divestiture. In addition, registrants should consider the impact that the revised financial statements may have on other CFC requirements (e.g., SEC Regulation S-X, Rules 3-05, 3-09, 4-08(g) and 3-10). File name: cpea-may-2022-report-property-equipment-disclosure-requirements.pdf Impairment: Goodwill – Goodwill from a business combination, the difference between the purchase price and the fair value of the net assets acquired.
Because goodwill is not (currently) amortized, U.S. GAAP requires it to be audited annually for impairment at the reporting entity level in accordance with ASC 350 Intangible Assets – Goodwill and Others. In this online course on CPEs (1.0 CPEs), we discuss how to identify a reporting unit and how the goodwill allocation process is distributed among the different reporting units. Upon completion of this allocation, we will meet the requirements for the audit of goodwill for impairment under U.S. GAAP. With over $3.5 trillion in goodwill on corporate balance sheets, this online course is a must for any accounting responsible financial reporting or auditing of US GAAP financial statements! Other disclosure requirements differ depending on whether a divestiture (1) meets the criteria for reporting discontinued operations, (2) does not meet the criteria for reporting discontinued operations, but is (or includes) an individually significant component of the entity, or (3) does not meet the criteria for reporting discontinued operations and does not meet any individual component of the company. an important component of the business is (or does not include). Companies must exercise good judgment when interpreting the meaning of the term “individually significant” because the term is not defined. Trigger event? Let`s get out of our assets and consider a depreciation! During this period of uncertainty, you must assess whether the impact of COVID-19 will result in non-financial impairments of ASC 350 and ASC 360 assets. Impairment of intangible assets with an indefinite lifespan is regulated in ASC 350-30 and impairment of goodwill in ASC 350-20.