View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 24, 2012

FASB proposes update on impairment testing

The Financial Accounting Standards Board (FASB) has proposed an accounting standards update on indefinite-lived intangible asset impairment testing.

The change will not require the calculation of the fair value of an indefinite-lived intangible asset unless the organisation determines, based on a qualitative assessment, that it is “more likely than not” the asset’s fair value is less than its carrying amount. 

Indefinite-lived trademarks, licenses and distribution rights are some of the intangible assets subject to the proposal.

“This proposed amendment is intended to reduce the cost of evaluating indefinite-lived intangible assets for impairment without changing the information provided to investors,” FASB chairman Leslie Seidman said.

The update would be effective for annual and interim impairment tests performed for fiscal years beginning after 15 June2012. Early adoption would be permitted. 

 

Related articles

FASB issues simplified goodwill for impairment standard

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to International Accounting Bulletin