Tests for Impairment of Intangible Assets

Companies may soon have more flexibility in testing for impairment of indefinite-lived intangible assets, if changes exposed for comment by the FASB in January 2012 are adopted as proposed.

This new proposal follows closely on the heels of guidance recently released for impairment tests of goodwill, and there are similarities in both the objectives and the overall approach. Like the guidance on goodwill, the proposal for other indefinite-lived intangible assets responds to concerns about the recurring cost and complexity of performing impairment tests, and the proposed relief includes an option to use qualitative assessments to determine when additional quantitative testing is necessary.

Our latest issue of the MHM Messenger highlights the proposed changes that would apply to other indefinite-lived intangible assets, including trademarks, licenses and distribution rights.

MHM Messenger 4-12: Tests for Impairment of Intangible Assets

More About the Partial Deferral of OCI Requirements

In our latest MHM Messenger you will find the background, issues and concerns related to the FASB’s deferred reporting requirements for OCI. The FASB has said it plans to re-address the requirements for reporting these reclassification adjustments in 2012.

• MHM Messenger 3-12: Partial Deferral of OCI Requirements

What is the MHM Messenger?

The MHM Messenger is a regular publication from Mayer Hoffman McCann P.C. that features the latest news on changes to accounting or auditing standards or regulatory matters and is delivered right to your inbox. Sign up now»

Organizational Changes at MHM

We’re proud to announce some changes in technical and leadership roles here at Mayer Hoffman McCann. It is a true testament to the quality of our people.

In brief:

• Bruce Murphy is a new Board appointee.
• Michelle Spriggs has joined the Professional Standards Group.
• Hal Hunt is now the National Employee Benefits Plan (EBP) Audit Leader.
• John Cronin will transfer to our New England offices.
• Bob Dowling is a new C0-Attest Leader in our Kansas City office.

You can read more details about these changes on the MHM website.

Helping You Understand Qualitative Tests for Impairment of Goodwill

In our latest issue of the MHM Messenger we discuss how companies can apply the new guidance for testing for impairment of goodwill.

An Executive Briefing on the topic, developed by MHM’s Professional Standards Group  goes in-depth on the topic with an overview of qualitative assessments, Q&As about testing goodwill for impairment, plus an illustrative case study.

MHM Messenger 2-12: Qualitative Tests for Impairment of Goodwill

If you have any specific questions, comments or concerns about the new qualitative assessments, please contact Keith Peterka of MHM’s Professional Standards Group or your MHM service professional.