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RBSA Home | Valuation | Impairment Studies for Intangible Assets & Goodwill

Impairment Studies for Intangible Assets & Goodwill

Financial accounting and reporting requires an analysis of impairment review of intangible assets at every accounting year end or as and when the indications suggest that there is a diminution in the value of an intangible asset.

Impairment Analysis provides guidance and insight in the identification and re measurement of intangible assets and goodwill pursuant to the Indian GAAP, IFRS and US GAAP and subsequently report any impairment loss.

ASC Topic 350 – US GAAP

After initial recognition, goodwill and indefinite lived intangible assets are periodically tested for impairment under ASC Topic 350.

IAS 36/Indian GAAP – AS 28

IAS 36: Impairment of Assets requires the testing of goodwill and long-lived intangible assets on an annual basis with other assets tested where there is an indication that the asset may be impaired. Goodwill is tested at a cash generating unit (“CGU”) level and is a single step test comparing the carrying value of the CGU to the recoverable amount. Goodwill impairment tests under IFRS frequently give materially different results to those under US GAAP due to the three step test used in ASC Topic 350.

RBSA has the required skills and expertise to perform unbiased and fair impairment analysis that will bring clarity to senior management, auditors, valuation professionals and regulators by explaining the valuation aspects.

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