Impairment Process Flow

This process flow details the various steps involved in the impairment process, covering determination of reporting units, fair value models, goodwill, indefinite-lived intangible assets, impairment assessments (accounting for the impairment or disposal of long-lived assets), and reviews and reconciliations. For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination shall be assigned to one or more reporting units as of the acquisition date.

This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.