ASC 350 requires periodic impairment testing on a no less than annual basis for goodwill and indefinite lived intangible assets on an entity’s balance sheet. In addition to regular annual impairment tests, ASC 350 requires interim impairment tests in the event of a trigger event. ASC 350-20-35-3C includes a partial list of possible trigger events. Key among these are a decline in the market capitalization, a change in the macroeconomic outlook and adverse changes in industry and market conditions. COVID-19 has led to both a large decline in the market cap of a significant majority of public companies, a dramatic worsening of the global economic outlook and dramatic disruptions to many supply chains with especially adverse consequences to certain industries.

In addition to impairment testing of goodwill and indefinite-lived intangible assets pursuant to ASC 350, Intangibles—Goodwill and Other, other items on the balance sheet may also require impairment testing. These include fixed assets which are tested pursuant to ASC 360, Property, Plant and Equipment, certain inventories pursuant to ASC 330, Inventory, and financial assets pursuant to ASC 326, Financial Instruments—Credit Losses, among others.

Several of the major accounting firms have published assessments of the current market environment and the expectation for interim procedures related to impairment testing and the documentation of the impairment findings. These publications recognize the changed environment and expectations by the U.S. Securities and Exchange Commission for additional procedures associated with potential asset impairments.

Our Globalview Advisors’ professionals have decades of experience working for Big 4 accounting firms. Our firm has focused on financial reporting valuations since the release of SFAS 141 and 142 in 2001. Given this experience, we bring deep knowledge of the impairment and fair value measurement standard requirements for financial reporting. We also have a deep knowledge of audit review process and audit documentation requirements which are an important consideration even if it is ultimately determined that an entity did not experience any impairment.

About Globalview Advisors

Globalview Advisors offers financial valuations and transaction advisory services for publicly listed and privately owned/unquoted companies in the U.S., the U.K., Europe, Asia, and other locations globally.

The firm’s services encompass valuations of businesses, intangible assets, debt, equity, and derivative instruments for:

The firm’s transaction advisory services are primarily rendered for:

Contact Information

For more information, please contact Michael Haghighat, ASA at +1 (949) 475-2801 or or Raymond Rath, ASA, CEIV™, CFA®  at +1 (949) 475-2808 or