Key Takeaways
- Timely and accurate impairment testing is essential to maintaining the integrity of financial statements and stakeholder trust.
- Public and private companies follow different accounting standards when impairing goodwill and indefinite-lived assets, including alternatives allowed under Private Company Council (PCC) guidance.
- Both public and private entities must assess impairment of long-lived assets under Accounting Standards Codification (ASC) 360, with careful attention to triggering events and recoverability.
While impairment is a word that no business owner wants to hear, it’s an important accounting practice to get right. The timing and accuracy of assessing and testing impairment is critical to the integrity of the financial statements relied on by stakeholders and investors.
To help you better understand impairment — including the asset types impacted and how public versus private companies must account for them — we share the articles below.
- Public Companies: Impairing Goodwill and Indefinite-Lived Assets
Align on the definitions, concepts and accounting standards regarding impairment and discover best accounting practices for public companies impairing goodwill and indefinite-lived assets.
- Private Companies: Impairing Goodwill and Indefinite-Lived Assets
Understand accounting alternatives released by the Private Company Council (PCC) for the impairment of goodwill and indefinite-lived assets for private companies. - Impairing Long-Lived Assets (for Public and Private Companies)
Dive into how an entity should assess impairment of its long-lived assets held and used under Accounting Standards Codification (ASC) 360 – Property, Plant and Equipment.
If you have questions about this topic or any other matters relating to accounting and assurance, please reach out to your PKF O’Connor Davies client service team or:
Jonathan Zuckerman, CPA
Partner
jzuckerman@pkfod.com | 646.699.2842
Kenneth Sumsky, CPA, CISA
Director
ksumsky@pkfod.com | 332.910.7951