COVID-19: Impairment valuation questions, answered

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04/02/20

PwC partners discuss valuation concepts in the goodwill, intangible, and fixed asset impairment models as companies look to their March 31 reporting.

If you’re unsure about how COVID-19 might impact your financial reporting, you're not alone. In response to the COVID-19 crisis, this podcast is part of a series that will address questions received surrounding the impacts to financial statements. Heather Horn is joined by PwC partner Andreas Ohl to focus on fair value in the context of goodwill, intangibles, and long lived assets.

Topics include:

  • 1:05  - Overview. We begin by establishing a foundation for understanding fair value concepts. Andreas provides an overview of the concepts and key considerations to keep in mind.

  • 2:35 - Best practices. What are some helpful tips when companies are determining fair value estimates? Andreas explains.

  • 8:02 - Control premium considerations. A common question we hear relates to the control premium assumption. Andreas explains what the concept represents and what companies should  think about in the current environment.

  • 12:47 - Discount rates. Addressing another common question, Andreas walks listeners through the discount rate assumption model and how it  should be applied in the current environment. 

  • 16:10 - Distressed markets. We close by discussing the concept of distressed markets. We close with a discussion on the goodwill impairment model and share examples of potential triggering events for interim impairment testing.

About our guest

Andreas Ohl is a partner in PwC's National office, where he focuses on mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's In-Process R&D guide, and has served as a member of the FASB's Valuation Resource Group.

About our host

Heather Horn is PwC's National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Contact us

Heather Horn

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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