FASB Accounting Standards Codification Study 2

To measure an impairment loss for property, plant, and equipment to be held and used, ASC 360-10-35-17 (Exhibit A) instructs the accountant to: Measure “the amount by which the carrying amount of a long-lived asset exceeds its fair value.” When it comes to intangible assets, authoritative literature can be found in ASC 350-30-35-14, which states that “an impairment loss shall be recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds fair value.” The ASC also says that reversal of an impairment loss previously recognized is not allowed, an excerpt of which appears in Exhibit D.

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 350-30-35-14, Intangibles—Goodwill and Other – General Intangibles Other than Goodwill – Subsequent Measurement – General – Recognition and Measurement of an Impairment Loss – Intangible Assets Subject to Amortization