ASC 350 IAS 36

ASC 350 / IAS 36 — Impairment Testing

Regulatory guide for goodwill and intangible asset impairment.

ASC 350 (US GAAP)

• Goodwill: Test at reporting unit level, one-step quantitative test
• Indefinite-lived intangibles: Fair value comparison
• Finite-lived intangibles: ASC 360 trigger-based

IAS 36 (IFRS)

• Cash-generating unit (CGU) level testing
• Recoverable amount = higher of FVLCTS and VIU
• Value in use (VIU) with pre-tax discount rate

Key Differences

Aspect	ASC 350	IAS 36
Test trigger	Annual + qualitative	Indicators only
Measurement	Fair value	Recoverable amount
Reversal	Not allowed	Allowed
Level	Reporting unit	CGU