Impairment Testing for Goodwill and Other Intangible Assets
Ervin L. Black, Mark L. Zyla · 2018
This chapter presents an overview of the impairment testing rules. Other intangible assets with finite lives are tested under the Impairment or Disposal of Long-Lived Assets subsections of ASC 360-10. Intangible assets with indefinite lives are tested for impairment under ASC 350-30. Under these rules, an intangible asset that is not subject to amortization must be tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets with finite lives are tested for impairment under ASC 360-10, which means such assets are tested for impairment only when events or changes in circumstances indicate that its carrying amount may not be recoverable. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value.