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
Prerequisites
Prerequisite: Experience on complex audit engagements.
Designed For: Accountants responsible for auditing potential impairment of long-lived assets.
Learning Objective
- Discover and describe typical assets subject to impairment, including finite and indefinite-lived assets.
- Identify and discuss indicators of impairment and recoverability testing for both tangible and intangible long-lived assets.
- Explore and explain goodwill accounting and auditing risks.
Last updated/reviewed: March 17, 2024
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Learning Objectives for Auditing Impairment of Long-Lived Assets, Including Goodwill 0:51
- Long-Lived Assets to be Held and Used-Identification of Impairment 6:21
- Long Lived Assets to be Held and Used-Test for Recoverability 11:42
- Long Lived Assets to be Held and Used-Test for Recoverability Cont'd 9:42
- Long Lived Assets to be Held and Used-Calculation of Impairment Loss 20:36
- Long Lived Intangible Other Than Goodwill 9:21
GOODWILL IMPAIRMENT
- Goodwill Impairment 14:30
- Identifying and Determining Fair Value of Reporting units 12:30
- Goodwill Impairment-Documentation Consideration 3:28
- Timings and Other Goodwill Impairment Considerations 8:13
- Private Company Alternatives 4:38
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: Auditing Impairment of Long-Lived Assets, Including Goodwill PDF
- Auditing Impairment of Long-Lived Assets, Including Goodwill Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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