Impairment: PP&E and Intangible Assets

Impairment exists when the carrying amount of an asset exceeds its fair value, but not all impairment is recorded in the financial statements. Determining if an asset or an asset group is impaired takes a significant amount of judgment and an understanding of the requirements of the different impairment tests within U.S. GAAP.

After discussing the scope of the impairment guidance and the concept of asset groups, this CPE eligible (1.5 CPE) eLearning course walks you through the "trigger-based" impairment test found within ASC 360 that is applicable to PP&E and intangible assets with finite lives. What about intangible assets with indefinite lives? We cover that too as we walk through the ASC 350 guidance. The online course concludes with a review of the presentation and disclosure requirements within U.S. GAAP related to impairment. If you’re looking for guidance on testing goodwill for impairment, you won’t find it in this course. We have a separate eLearning course dedicated to that topic.

This is the first course in our 2-part impairment training series.

 By the end of this course, you should be able to: 

• Identify the amount of long-lived asset impairment, if any, that should be recorded in the financial statements 
• Recall the definition of an asset group 
• Distinguish between the two impairment tests for intangible assets