What every lender needs to know about impairment

Description

Abstract: Impairment testing is designed to give lenders and other stakeholders an early warning sign that the value of a company’s goodwill, brand or other indefinite-lived intangible asset has decreased. This article explains which intangible assets are subject to impairment, how it’s measured and how the accounting rules about impairment testing are evolving. A sidebar shows how impairment affects a borrower’s financial statements.