Update to snapshot of accounting guidance for long-lived asset impairment
FINANCIAL REPORTING INSIGHTS |
Our white paper, Snapshot: Accounting for the impairment of goodwill and other long-lived assets, has been updated to reflect the private company goodwill accounting alternative introduced by the Financial Accounting Standards Board in Accounting Standards Update (ASU) 2014-02, Intangibles – Goodwill and Other (Topic 350): Accounting for Goodwill. While the ASU is not effective until annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015, it can be adopted early in financial statements not yet made available for issuance.
While the private company goodwill accounting alternative alleviates some of the complexity involved in accounting for the impairment of goodwill and other long-lived assets, a considerable amount of complexity continues to exist, particularly for entities that cannot or do not elect the alternative. Our white paper helps entities deal with this complexity by providing a side-by-side comparison and brief summary of the relevant accounting guidance in the FASB’s Accounting Standards Codification related to the impairment of goodwill, indefinite-lived intangible assets, long-lived assets to be held and used and long-lived assets to be disposed of by sale.