FASB Accounting Standards Codification Study

The FASB Accounting Standards Codification (ASC) includes authoritative literature pertaining to the impairment of fixed and intangible assets. Section 360-10-35-17, contained in Exhibit A, reads: “An impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value.” The date on which the asset is tested for recoverability is determined in Section 360-10-35-21, included in Exhibit B: “A long-lived asset shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.” The treatment of intangibles is slightly different however, and is covered in Section 350-30-45-3, included in Exhibit C. The ASC states: “An intangible asset [should] be tested for impairment when it is determined that the asset shall no longer be amortized or shall begin to be amortized due to a reassessment of its remaining useful life.”

FASB ASC paragraph 360-10-35-17, Property, Plant, and Equipment - Overall – Subsequent Measurement – Impairment or Disposal of Long-Lived Assets – Long-Lived Assets Classified as Held and Used – Measurement of an Impairment Loss

FASB ASC paragraph 360-10-35-21, Property, Plant, and Equipment - Overall – Subsequent Measurement – Impairment or Disposal of Long-Lived Assets – Long-Lived Assets Classified as Held and Used – When to Test a Long-Lived Asset for Recoverability

FASB ASC paragraph 350-30-45-3, Intangibles—Goodwill and Other – General Intangibles Other than Goodwill – Other Presentation Matters – General