Snapshot: Accounting for the impairment of goodwill and other long-lived assets

Accounting for the impairment of goodwill and other long-lived assets is complex because there are different models depending on the type of asset involved. Each model uses a different unit of account and each has a different impairment recognition threshold. The frequency with which impairment must be assessed and the basis used to measure an impairment charge varies across some of these models as well.

To help with this complexity, McGladrey’s National Accounting Standards Group has prepared Snapshot: Accounting for the impairment of goodwill and other long-lived assets. This document provides a side-by-side comparison and brief summary of the relevant accounting guidance in the Financial Accounting Standards Board’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.