Impairment Calculator
ASC 350 governs impairment testing for goodwill and indefinite-lived intangible assets, while ASC 360 addresses long-lived assets and asset groups.
This calculator performs the quantitative impairment test required by ASC 350-20-35 and ASC 360-10-35 — comparing the carrying amount of a reporting unit or asset group to its fair value and determining the impairment loss to recognise. A qualitative assessment (permitted under ASC 350-20-35-3 to determine whether the quantitative test is necessary) is not yet available in this tool — consult the standard or your advisor to determine if it applies to your situation before proceeding.
ASC 350-20-35-8A: Impairment loss cannot exceed the goodwill carrying amount.
How it works
For goodwill (ASC 350-20), you input the reporting unit's carrying amount and estimated fair value. The tool computes the impairment charge as the excess of carrying amount over fair value, capped at the goodwill balance.
For long-lived assets (ASC 360-10), it first tests recoverability by comparing undiscounted future cash flows to carrying amount, then measures the loss as the excess of carrying amount over fair value if the test fails.