Mandatory impairment testing for nonprofit healthcare providers

June 2011
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Mandatory impairment testing for nonprofit healthcare providers

At a glance

Nonprofit organizations are now required to perform annual impairment testing of goodwill and indefinite-lived intangibles. Are you prepared?

Mandatory impairment testing: What nonprofit healthcare providers need to know now

New accounting standards have changed the way nonprofit organizations (NPOs) report mergers and acquisitions. NPOs are now also required to annually test for impairments to goodwill and other intangible and tangible assets. The challenges are magnified for healthcare organizations that face additional complexities related to valuing unique intangibles, such as certificates of need, Medicare licenses, and physician relationships.

Mandatory impairment testing: What nonprofit healthcare providers need to know now provides key insights on this timely issue, including:

  • Overview of the new accounting requirements
  • Details on how NPOs should approach the annual impairment testing requirement for goodwill and indefinite-lived intangible assets
  • Potential pitfalls to avoid
  • Transaction structuring considerations