Auditing Impairment of Long-Lived Assets, Including Goodwill – Identifying and Calculating Impairment Losses

Long-lived assets may be either finite or indefinite-lived, tangible or intangible in nature. The carrying value of these long-lived assets should be evaluated at each measurement date to determine whether there is an impairment loss necessary due to declines in an asset’s fair value. This module will describe the tips and techniques for determining whether an impairment loss risk exists, and how to calculate, record, and disclose any such loss.

Major Topics:

• Indicators of impairment
• Steps in recoverability testing for long-lived assets held and used
• Grouping assets held and used
• Allocating impairment loss and disclosures
• Testing indefinite lived intangibles for impairment, including goodwill
• Valuation techniques for determining a reporting unit’s fair value