Although the accounting literature for the impairment of long-lived assets other than goodwill has not significantly changed in many years, we recently have encountered practice issues in the application of this guidance. In particular, issues have arisen in the impairment testing of long-lived assets that are classified as held and used, which is a multi-step process that often can be complex. RSM US LLP's National Professional Standards Group has written a paper, Impairment Testing of Long-Lived Assets Classified as Held and Used, which addresses several aspects of the multi-step approach to impairment testing of long-lived assets, such as:
- Asset group determination
- Examples of impairment indicators
- Determining whether the carrying amount of an asset group is recoverable
- Determination of the fair value of an asset group
- Allocation of the impairment loss
