Impairment Loss on Intangible Assets
Code: 5332
👁 Views: 125
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Non-operating losses arising from impairment of intangible assets (e.g., goodwill, patents, trademarks) under impairment testing. Classified under "Other Losses". Offset by "Impairment of Intangible Assets" (1236) on balance sheet.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 21 / IAS 16 / IFRS 9 / IAS 36
Multiple Standards
US GAAP
ASC 830 / ASC 360 / ASC 320 / ASC 326 / ASC 350
Multiple Standards
❓ Frequently Asked Questions
Q: How is impairment of intangible assets tested?
A: If the asset has a finite life, it is tested when impairment indicators exist. If it has an indefinite life (e.g., some trademarks), it is tested annually.
Q: Can an impairment loss on an intangible asset be reversed?
A: Under IFRS, it can be reversed if the recoverable amount increases in subsequent periods (up to the amortized cost). Under GAAP, impairment loss cannot be reversed.