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Assessing COVID-19 Impacts on Financial Statements
ASC 350 - Goodwill & Indefinite-Lived Intangibles
ASC 360 – Long-Lived Assets
Triggering Event Examples (ASC 360-10-35-21)
A significant decrease in the market price of a long-lived asset (asset group).
Macroeconomic conditions (e.g., deterioration in general economy).
A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition.
Industry and market considerations (e.g., deterioration in the environment in which the company operates).
A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator.
Cost factors (e.g., increases in raw materials, labor).
An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group).
Overall financial performance (e.g., negative or declining cash flows).
A current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group).
Other relevant entity-specific events (e.g., changes in management or key personnel).
A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term “more likely than not” refers to a level of likelihood that is more than 50 percent.
Events affecting a reporting unit (e.g., change in composition of net assets, expectation of disposing all or a portion of the reporting unit).