Asset Impairment Testing
We’re a market leader of valuation services, supporting clients with the goodwill, intangible and long-lived asset impairment testing
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Deep Experience in Fair Value Determination and Recoverability Assessment
Changing tax and financial reporting regulations require an objective and independent assessment of value, as well as testing assets for impairment on annual basis. Regulatory bodies – such as, the U.S. Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), International Accounting Standards Board (IAS), etc. – establish a variety of implementation guidance and new financial reporting rules with asset valuation implications, while the Internal Revenue Service (IRS) and other global tax authorities impose new reporting rules with tax valuation implications, transfer pricing and related work.
As a market provider of valuation services, CPCON has more than 25 valuation practitioners, who routinely assist clients with the fair value measurement and impairment testing of long-lived assets.
ASC 360, Impairment of Long-Lived Assets
ASC 360 suggests that the recoverability of long-lived assets – which includes property, plant and equipment and finite-lived intangible assets – to be individually assessed and determined by comparing the identifiable cash flows over the economic life of assets. If assets are determined as being not recoverable, the difference between the carrying amount and fair value of the asset shall be recognized as a loss for impairment.
IFRS IAS 36, Impairment of Assets
IAS 36 requires testing assets for impairment on either on annual basis or whenever existing indications of impairment. In addition, Goodwill impairment involves goodwill being tested at a Cash Generating Unit (CGU) and compare the carrying value of the CGU to its recoverable amount – which is either the value in use or Fair Value less costs of disposal
Our asset impairment testing services include:
- Fair value determination using appropriate valuation methods to assist management with the allocation of impairment loss
- Identification of ASC 360 asset groups
- IAS 36, Allocation of goodwill to Cash Generating Units (CGUs)
- IAS 36, Measurement of the value in use or Fair Value less costs of disposal
- Analysis of IAS 36 Impairment Testing requirements and implications
- IAS 36 – Useful life studies
CPCON Group is a global leader in inventory solutions, providing our clients with accurate data and automated tools needed for inventory management.
As a trusted partner in the area of valuation advisory to organizations for more than 25 years, CPCON Group is a leading independent provider of valuation services and objective valuation reports for financial reporting, regulatory compliance, insurance, and fiduciary requirements.
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