This section discusses the impairment tests for noncurrent tangible and intangible assets, indefinite-lived intangible assets, and goodwill. Under both IFRS Accounting Standards and U.S. GAAP, assets may be tested individually or as a group, depending on whether largely independent cash flows attributable to the assets exist. The groupings may differ under IFRS Accounting Standards and U.S. GAAP owing to how they are defined. Under both IFRS Accounting Standards and U.S. GAAP, indefinite-lived intangibles, PP&E, and goodwill are each tested for impairment. As shown in the table below, under U.S. GAAP, an entity uses a two-step impairment testing model for PP&E and finite-lived intangibles, while under IFRS Accounting Standards, an entity must use a model that has only one step. Under both sets of standards, an entity must use a one-step model for testing goodwill and indefinite-lived intangible assets; however, under U.S. GAAP, an entity can use an optional qualitative assessment (step 0). Also, the reversal of impairment losses is permitted under IFRS Accounting Standards but not under U.S. GAAP.
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