Impairment issues have always been important in periods of economic contraction and decline. They have recently become more important, due to the general economic condition and the recent changes to accounting procedures. In late June 2001, the FASB issued Statements No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible Assets, substantially changed the accounting for business combinations, goodwill, and intangible assets. The new procedures may now require a separate analysis of various tangible and intangible assets and may require a valuation of tangible and intangible assets to determine the impairment for the purpose of adjusting the booked values of assets.
Impairment studies are complex appraisal and consulting issues because of the need to analyze several levels of value. The impaired assets may include significant business value, and other intangibles. The overall asset value as well as the value of components of the overall asset must be determined. Furthermore, the values must be reconciled.
Federal Appraisal provides expert impairment studies in compliance with the latest accounting procedures. Federal Appraisal, LLC provides cost effective, USPAP-compliant impairment studies that are certified by MAI’s and ASA’s.
See Business Valuation/Asset Type for more.