Impairment Testing

Impairment Testing

Goodwill and intangible asset impairment under ASC 350 and IAS 36.

Goodwill Impairment (ASC 350)

One-step test: compare reporting unit fair value to carrying value.

from intangible_valuation.advanced.impairment_testing import goodwill_impairment_test
result = goodwill_impairment_test(
    carrying_value=15_000_000, fair_value=13_000_000,
    reporting_unit="Software Division", standard="ASC350",
)
# Impairment: $2,000,000

Intangible Impairment (ASC 350 / IAS 36)

Two models: ASC 350 (fair value) and IAS 36 (recoverable amount).

Fair Value Less Costs to Sell (IAS 36)

FVLCTS = Fair Value - Costs to Sell

Cash-Generating Unit (CGU) Impairment

IAS 36 requires testing at CGU level with value-in-use calculations.

MCP Tools

goodwill_impairment_test, intangible_impairment_test