2.10 Disclosures Related to Recognition of an Impairment Loss
In the period in which an entity recognizes an impairment loss, it
should disclose the information required by ASC 360-10-50-2.
ASC 360-10
Impairment of Long-Lived Assets Classified as Held and
Used
50-2 All
of the following information shall be disclosed in the notes
to financial statements that include the period in which an
impairment loss is recognized:
- A description of the impaired long-lived asset (asset group) and the facts and circumstances leading to the impairment
- If not separately presented on the face of the statement, the amount of the impairment loss and the caption in the income statement or the statement of activities that includes that loss
- The method or methods for determining fair value (whether based on a quoted market price, prices for similar assets, or another valuation technique)
- If applicable, the segment in which the impaired long-lived asset (asset group) is reported under Topic 280.
Pending Content (Transition Guidance
220-40-65-1)
Impairment of Long-Lived Assets Classified
as Held and Used
50-2 All of the following information
shall be disclosed in the notes to financial
statements that include the period in which an
impairment loss is recognized:
-
A description of the impaired long-lived asset (asset group) and the facts and circumstances leading to the impairment
-
If not separately presented on the face of the statement, the amount of the impairment loss and the caption in the income statement or the statement of activities that includes that loss
-
The method or methods for determining fair value (whether based on a quoted market price, prices for similar assets, or another valuation technique)
-
If applicable, the segment in which the impaired long-lived asset (asset group) is reported under Topic 280.
See paragraphs 220-40-50-21 through 50-25 for
additional disclosure requirements.
Changing Lanes
In November 2024, the FASB issued ASU
2024-03, which requires the disaggregation of income
statement expenses for PBEs. The ASU does not change the expense captions an
entity presents on the face of the income statement; rather, it requires
disaggregation of certain expense captions into specified categories in
tabular disclosures within the footnotes to the financial statements. A
“relevant expense caption” subject to disaggregation is any caption on the
face of the income statement within continuing operations that includes any
of the following natural expenses: (1) purchases of inventory; (2) employee
compensation; (3) depreciation; (4) intangible asset amortization; and (5)
depreciation, depletion, and amortization recognized as part of oil- and
gas-producing activities or other depletion expenses. In addition to these
natural expense categories, the tabular disclosure would include certain
other expenses, gains, and losses, when applicable (e.g., impairment losses
on long-lived assets held and used).
Further, on January 6, 2025, the FASB issued ASU 2025-1, which amends ASU 2024-03’s effective date
“to clarify that all public business entities are required to adopt the
guidance in annual reporting periods beginning after December 15, 2026, and
interim periods within annual reporting periods beginning after December 15,
2027.”
For more information about ASU 2024-03, see Deloitte’s November 8, 2024
(updated January 21, 2025), Heads
Up.