Proposal for impairment of indefinite-lived intangible assets.
See: Financial Accounting Standards Board
See Financial Accounting Standards Board (FASB). issued for public comment a proposed update on indefinite-lived intangible asset Intangible Asset
An asset that is not physical in nature.
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. impairment testing intended to simplify impairment assessment and reduce the recurring re·cur
intr.v. re·curred, re·cur·ring, re·curs
1. To happen, come up, or show up again or repeatedly.
2. To return to one's attention or memory.
3. To return in thought or discourse. costs to comply with existing guidance, while also improving the consistency of testing methods among long-lived asset categories for preparers. The standard would apply to all public, private and nonprofit organizations.
The amendments would allow an organization the option to first assess qualitative factors lo determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment no longer would be required to calculate the fair value of an indefinite-lived intangible asset unless the organization determiners, based on a qualitative asset unless the organization determines, based on a qualitative assessment, that it is "more likely than not" that the asset's fair value is less than its carrying amount.
Comments are due by April 21.
Learn more at www.calcpa.org/ILintangibleassets.