AUDIT | DECEMBER 2012

THE POWER
OF BEING
UNDERSTOOD

U.S. GAAP VS. IFRS: IMPAIRMENT OF LONG-LIVED
ASSETS AT-A-GLANCE
Increasing globalization coupled with related regulations continues to put pressure on moving towards a common global accounting framework – International Financial Reporting
Standards (IFRS). Currently, more than 100 countries use
IFRS, so if your business goals include global expansion, it is critical to educate yourself about the impact of IFRS on your financial reporting processes and business now. To gain a better understanding of what IFRS means for your organization, we have prepared a series of comparisons dedicated to highlighting significant differences between
IFRS and U.S. generally accepted accounting principles
(GAAP). This particular comparison focuses on the significant differences between U.S. GAAP and IFRS when accounting for the impairment of long-lived assets. For other comparisons available in this series, refer to our U.S. GAAP vs. IFRS comparisons at-a-glance series.
A discussion about U.S. GAAP and IFRS would not be complete without mentioning the status of the Securities and Exchange Commission’s (SEC) activities focused on determining whether the application of IFRS by U.S. registrants should be required or allowed. While the SEC has not made any final decisions with respect to use of
IFRS by U.S. registrants, its activities are ongoing. For more information, refer to our IFRS Resource Center.
The guidance related to accounting for the impairment of goodwill and indefinite-lived intangible assets in U.S. GAAP is included in the Financial Accounting Standards Board
(FASB) Accounting Standards Codification (ASC) Topic 350,
Intangibles—Goodwill and Other, and the guidance related to accounting for the impairment or disposal of other longlived assets in U.S. GAAP is included in FASB ASC Topic 360,
Property, Plant, and Equipment.