Independent Valuation Support for Long-Lived Asset Impairment Testing
The Valuation Group provides valuation support for long-lived asset impairment matters involving asset groups, held-and-used assets, assets held for sale, recoverability considerations, fair value measurement, and financial reporting review.
Our work supports CFOs, controllers, auditors, CPA firms, attorneys, boards, investors, private companies, and advisory teams that need documented valuation analysis for impairment-related reporting matters.
Why The Valuation Group
Long-lived asset impairment analysis requires careful attention to the asset group being tested, the expected cash flows associated with that asset group, the valuation date, market conditions, operating performance, remaining useful life, and the assumptions supporting the fair value conclusion.
Our ASC 360 work focuses on the asset group, the cash flows it generates, the remaining useful life of the assets, recoverability, market evidence, and the assumptions supporting fair value.
We provide valuation support for long-lived asset impairment matters involving operating assets, business units, facilities, locations, equipment, leasehold improvements, real estate-related assets, and other asset groups.
Our analysis may address historical performance, expected future cash flow, market conditions, utilization, remaining useful life, operating trends, risk, and the relationship between carrying value and fair value.
ASC 360 matters often require identification and analysis of the appropriate asset group. The valuation must consider how the assets generate cash flows and whether the expected undiscounted cash flows support recoverability.
The Valuation Group helps professional teams evaluate the financial evidence, cash flow assumptions, and valuation implications associated with the asset group being reviewed.
We provide valuation support for assets held and used in operations as well as assets being evaluated for sale, disposition, closure, restructuring, or discontinued use.
Our work may address expected proceeds, market participant assumptions, disposal costs, changes in use, operating plans, and the financial evidence supporting the impairment analysis.
Long-lived asset impairment issues may arise from declining financial performance, loss of customers, underutilized facilities, adverse market changes, increased costs, regulatory changes, restructuring decisions, closure plans, or other triggering events.
The Valuation Group helps management, auditors, CPA firms, and advisory teams document the valuation implications of those events.
Related Valuation Issues
ASC 350 Goodwill & Intangible Asset Impairment
Goodwill and intangible asset impairment matters may overlap with long-lived asset impairment when business performance, reporting units, or asset groups are affected.ASC 820 Fair Value Measurement Support
Fair value measurement support may be required when impaired long-lived assets, asset groups, or disposal groups must be valued.ASC 805 Purchase Price Allocations
Assets recognized in acquisition accounting may later require impairment analysis if businessconditions change
