Cheat Sheet for Testing Impairment of Nonfinancial Assets

The requirements for testing the impairment of nonfinancial assets (long-lived assets under ASC 360, indefinite-lived intangible assets under ASC 350-30, and goodwill under ASC 350-20) are all different! This is why it’s so important to know what guidance governs the type of nonfinancial asset you’re testing and when testing is required, which is why we are providing this helpful cheat sheet which summarizes the various requirements for each type of nonfinancial asset.

Additionally, the order of testing these various assets for impairment is important to ensure each asset is valued appropriately after consideration of impairment. When testing nonfinancial assets for impairment, a company must adhere to a specific hierarchy, which we’ve also provided as a helpful reminder in this cheat sheet.

Download this helpful cheat sheet and carry it with you wherever you go for a reminder on the various testing requirements for each asset as well as the order to test!