Impairment Testing
Goodwill impairment testing required
annually under –‒ Indian accounting standards (Ind AS 36)
‒ U.S. GAAP (ASC 350)
‒ IFRS (IAS 36)
HIGHLIGHTS
At L Singh and Associates, we understand the importance of accurately assessing the value of assets and investments for businesses. Our specialized impairment testing services assist companies in evaluating and determining the impairment of assets, ensuring compliance with accounting standards and regulatory requirements. With our expertise in law and finance, we offer comprehensive impairment testing solutions tailored to the unique needs of our client.
Impairment Testing Overview: Impairment testing involves assessing the carrying value of an asset and comparing it to its recoverable amount. This process helps businesses identify any potential decrease in the value of their assets and investments, ensuring accurate financial reporting. Our team of experts conducts impairment tests in accordance with relevant accounting standards and regulations to provide reliable and objective assessments.
Assessment of Impairment Indicators: To initiate the impairment testing process, our professionals analyze various indicators that may suggest potential impairment. These indicators may include significant changes in market conditions, adverse economic factors, technological advancements, legal or regulatory changes, or other external or internal factors that may impact the value of the assets. We assist businesses in identifying these indicators and determining the need for impairment testing.
Valuation Methodologies and Approaches: Our experienced team utilizes a range of valuation methodologies and approaches to assess the recoverable amount of assets. We consider factors such as market conditions, discounted cash flow analysis, market multiples, and other appropriate techniques to determine the fair value of the assets. We ensure that the chosen valuation approach aligns with the specific asset type and regulatory requirements.