Wiley GAAP for Governments 2020 by Warren Ruppel

Author:Warren Ruppel [Ruppel, Warren]
Language: eng
Format: epub
ISBN: 9781119596103
Publisher: Wiley
Published: 2020-05-05T00:00:00+00:00

Reporting Impairment Losses

GASBS 42 provides that most impairment losses should be considered permanent (requiring a write-down of the asset) unless evidence is available to demonstrate that the impairment will be temporary. Impairment losses (other than temporary impairments) should be reported in the statement of activities and statement of revenues, expenses, and changes in fund net position, if appropriate, as a program or operating expense, special item, or extraordinary item in accordance with the guidance of GASBS 34. If not apparent from the face of the financial statements, a general description, amount, and the financial statement classification of the impairment loss should be disclosed in the notes to the financial statements. The carrying amount of impaired capital assets that are idle at year-end should be disclosed, regardless of whether the impairment is considered permanent or temporary.

Once an impairment loss has been recorded for an asset, the value of that asset should not be written up in the future if events affecting the circumstances of the impairment change.

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