Impairment of long-lived assets held and used

Mar 14, 2024

Beth Paul, Deputy Chief Accountant in PwC's National Office, and host Heather Horn discuss key topics on impairments of long-lived assets, including identifying asset groups, impairment triggering events, recoverability tests, considerations for the test, measuring and allocating impairment loss. They provide insights on complexities and fair value considerations, exclusions under ASC 360, determining asset group levels, cash flow considerations, calculating impairment loss, fair value assessment, and market participant assumptions in impairment testing.

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Introduction

00:00 • 2min

Discussion on Assets Covered by ASC 360 and Scope Exclusions

02:25 • 2min

Understanding Asset Group Level for Impairment Analysis

04:30 • 16min

Determining Cash Flows and Asset Group Considerations

20:55 • 5min

Process of Calculating Impairment Loss and Fair Value Consideration

25:32 • 2min

Exploring Impairment Testing on Long-Lived Assets

27:06 • 3min

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Got property, plant, and equipment? We’ve got you covered with a miniseries that explores the key judgments and complexities on the topic. We kick off with the impairment of long-lived assets that are held and used. Host Heather Horn is joined by Beth Paul, Deputy Chief Accountant in PwC’s National Office, to break down what is important.

In this episode, you’ll hear:

00:28 - An overview of long-lived asset impairments and how asset classes are relevant
03:17 - A refresher on how to identify asset groups for the impairment analysis
- 10:28 - When changes to asset groups are necessary and the implications
11:48 - How to determine if there is an impairment triggering event
14:57 - A discussion on the impairment recoverability test
- 17:18 - A explanation of key considerations for the recoverability test, including which cash flows and periods to include
24:18 - How to measure and allocate an impairment loss

For more information, read chapter 5 of our Property, plant, equipment and other assets guide or listen to another podcast with further insights on this topic, Impairment toolkit: Long-lived assets. Additionally, follow this podcast on your favorite podcast app to have other episodes in the series pushed to you.

Beth Paul is a Deputy Chief Accountant in PwC’s National Office responsible for a team of consultants that specialize in business combinations and related areas, such as consolidations, disposals, impairments, and segment reporting.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.