Registrants often record impairments in connection with probable or actual disposal transactions when an asset group is classified as held for sale, a discontinued operation, or otherwise. In certain situations, SEC rules and regulations require registrants to provide disclosures related to such impairments in their filings (e.g., periodic or interim reports, registration statements). The SEC staff also expects registrants to provide appropriate disclosures before incurring a material impairment charge as well as about the specific events and circumstances that led to the charge in the period of impairment. Through its filing review process, the SEC staff may ask questions about the timing of impairment testing when assets are classified as held for sale or are disposed of. For example, the staff may ask whether assets that the registrant expects to sell or dispose of were tested for impairment in prior periods.
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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.