Asset Impairment Testing
We’re a market leader of valuation services, supporting clients with the goodwill, intangible and long-lived asset impairment testing
Home > Valuation Advisory > Asset Impairment Testing
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
A qualified appraisal is a written report by a qualified appraiser that estimates the fair market value of one or more assets. This document is
A RFID asset tracking solution involves RFID smart tags and labels, fixed or handheld RFID readers, and custom software solutions to suit any asset management
Did you know that the global fixed asset management software industry is expected to hit $5.2 billion in 2024? Companies are required to comply with
What is asset tagging, and how does it benefit businesses? What are the advantages of asset tagging with RFID? Learn all about asset tags and more here.
CPCON Group is a global leader in fixed asset advisory services, providing our clients with accurate data and automated tools needed for fixed asset management.
As a trusted partner in the area of fixed asset management to organizations for more than 25 years, CPCON provides endto-end fixed asset management solutions. Empowering clients to gain insights, manage risk and drive improved financial
Active CPCON Fixed Assets clients.
of fixed asset advisory
solutions and technology-enable
Subscribe to CPCON Reports