Expand
Resize
Add to favorites
The SEC staff’s comments around fixed assets primarily related to the accounting for impairments, including the assessment of whether an impairment analysis was necessary. The SEC staff has focused on the quality of the disclosure of the judgments and estimates involved, frequently commenting on:
  • at risk assets or asset groups, including the level of uncertainty and sensitivity of key assumptions;
  • the qualitative and quantitative factors that support impairment test conclusions, including the timing of when the impairment was recognized; and
  • whether economic and market conditions and operating losses at the segment level should have triggered an interim impairment analysis.
Comment Examples
Guidance references
  • Expand your disclosure to discuss the degree of uncertainty associated with the key assumptions used in evaluating asset recoverability and identify potential events and/or changes in circumstances which would reasonably be expected to negatively affect these key assumptions.
  • Describe for us, in reasonable detail, the material facts, circumstances and assumptions you considered in determining the amount and timing of the impairment charge recorded in the fourth quarter.
  • Please tell us if you performed an impairment analysis of the Asset Group during the first quarter, and if so, please tell us the results of the analysis. If you did not perform an impairment analysis, please explain to us why you do not believe such an analysis was necessary.
  • Please tell us the extent to which assets were grouped and the basis for any such grouping in your impairment assessment. Please describe to us what, if any, interdependencies resulted in your conclusions in identifying the lowest level of cash flows. Refer to ASC paragraph 360-10-35-23 through 360-10-35-25.
Financial statement presentation guide - Chapter 8.6: Property, plant and equipment
Property, plant, equipment and other assets guide - Chapter 5: Impairment

PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

Expand
Please ensure
that you select
Print Background (colors and images) when printing.
CONTINUE
PwC image modal

This content is copyright protected. It is for your own use only - do not redistribute. These materials were downloaded from PwC's Viewpoint (viewpoint.pwc.com) under license.

Warning 2

Account activation

Thanks for signing up with us!

An activation email has been sent to your registered email to allow you to login.


Please follow the instructions specified in the email to complete the registration process.

Your Viewpoint account is not activated.

To activate, a validation email has been sent to your registered email address..

If you cannot locate the validation email or if the original validation link has expired, please click the link below to request that another email be sent.

Resend activation

An activation email has been sent to your registered email to allow you to login.

Continue

To activate your account, a link will be sent to your registered email account. Would you still like to proceed?

Cancel
Continue
Forgot password
Please enter the email address you registered with us

{{email.emailErrorMessage}}

Reset password

You have requested to reset your password. A reset password link has been sent to your registered email address.

Continue
Please confirm

To reset your password, a link will be sent to your registered email account. Would you still like to proceed?

Cancel
Continue
✕

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Viewpoint allows you to save up to 25 favorites.

Consider removing one of your current favorites in order to to add a new one.

Go to favorites

Are you sure you would like to remove this page from your list?

Yes
✕

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.
signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide
✕

Hello and welcome to Viewpoint

Your go-to resource for timely and relevant accounting, auditing, reporting and business insights. Follow along as we demonstrate how to use the site

Before we start.

Choose your preferred language below.