United States

Update to long-lived asset impairment snapshot for ASU 2017-04


Our white paper, Snapshot: Accounting for the impairment of goodwill and other long-lived assets, has been updated to reflect the goodwill impairment model simplification introduced by the Financial Accounting Standards Board (FASB) in Accounting Standards Update (ASU) 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment?. While the ASU is first effective for public business entities that are Securities and Exchange Commission filers in their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, it can be adopted early by all entities in any interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

While ASU 2017-04 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. 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.