Impairment Reviews
IAS 36, SFAS 142, IFRS 3, SFAS 141, FRS 11
Annual Impairment reviews for both goodwill and intangible assets with indefinite live such as brands and trademarks are required in most jurisdictions following the issue of the revised IAS 36 requires an entity to test goodwill acquired in a business combination for impairment annually. This approach is consistent with SFAS 142, the standard applicable for the US reporting purposes and is in line with requirements of IFRS 3 and SFAS 141.
FRS 11, the current UK reporting standard, currently requires companies to ensure that fixed assets and goodwill are recorded in the financial statemnts at no more than their recoverable amount and that any resulting impairment is changed to the profit and loss account.
American Appraisal, a fully independent firm, specialises in valuing both business and intangible assets for impairment reviews. We have undertaken such impairment reviews for both US and UK accounting purposes. Auditors are prohibited from undertaking reviews under the strict independence rules applying to all listed companies worldwide. American Appraisal is regularly recommended by "Big 4" audit firms where independence rules prohibit their involvement.