Guidance on impairment in current market conditions
The current economic slowdown will increase the likelihood that impairment charges will need to be taken and appropriate disclosures made. The firm's Global Accounting Consulting Services team has prepared a list of the top 10 areas to watch out for. Each tip is accompanied by an explanation or illustrative example. We have also published a set of questions and answers on impairment testing of non-financial assets in current economic conditions. These provide practical guidance on impairment indicators to look out for, timing of impairment tests, suggestions on how to do an impairment test in volatile markets and what disclosures are critical to the market and regulators in the current environment.
Questions and answers on impairment of non-financial assets in the current crisis (pdf 68kb) can also be downloaded here.
