FASB Proposes New Update for Impairment of Indefinite-Lived Intangible Assets

The FASB has proposed certain changes to Accounting Standards Update (“ASU”) 350-30, Intangibles — Goodwill and Other — General Intangibles Other than Goodwill. The proposed amendment is similar to the simplification that FASB issued last year relating to the impairment testing of goodwill. Under the proposed ASU, an entity testing indefinite-lived intangible assets for impairment would have the option of performing a qualitative assessment to determine whether it is more likely than not that the asset is impaired. Examples of intangible assets subject to the proposal would include indefinite-lived trademarks, licenses, and distribution rights. The standard would apply to all public, private, and not-for-profit organizations. The ASU is open for comment through April 24, 2012.

• Click here for the press release
• Click here for a copy of the Exposure Draft