This week we kick off our impairment toolkit series with an overview of the impairment framework and its application to inventory and other current assets.
In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering impairments – a complex topic with a variety of accounting and reporting considerations.
In this episode, Heather Horn was joined by PwC partner Pat Durbin to discuss key considerations when working through the impairment accounting framework, including a focus on impairment considerations for inventory and other current assets.
In this episode, you will hear them discuss:
  • 1:05 - An overview of current macroeconomic factors that contribute to the impairment of assets
  • 5:32 - An introduction to the impairment framework
  • 12:01 - Impairment triggers for non-financial assets, including examples seen in practice
  • 22:38 - Sector-specific considerations to keep in mind
  • 25:10 - The inventory impairment model
  • 31:53 - Impairment accounting for other current assets
  • 38:43 - Key reminders as companies think through the impairment model
Want to learn more? Refer to our previous podcasts on impairment accounting, including accounting for goodwill and other impairments and answers to your impairment valuation questions. Stay tuned for more insightful episodes in the coming weeks.
About our guest
Pat Durbin is a Deputy Chief Accountant, leading the revenue and liabilities division in PwC’s National Office. He has over 30 years of experience consulting with our clients and engagement teams on complex accounting matters, including issues related to revenue, compensation, income taxes, and inventory under both US GAAP and IFRS.
About our host
Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to
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