A diagnosis for your impairment assessment
The impact of COVID-19
Consider the impact of COVID-19 on your impairment testing to ensure you understand the potential effects on your financial statements and can manage expectations of your stakeholders. Articulating the impact in a manner that’s easy for stakeholders to understand will be important and require time.
In this publication we discuss the wide-ranging financial and operational impacts of COVID-19 on an organisation, and as a result, the potentially pervasive effect on the financial statements either through adjustments to fair value of assets such as investment property and agriculture assets, or through impairment testing of goodwill, property, plant and equipment, right-of-use assets, intangible assets, and other investments.
Amid this uncertainty, disclosures of the key judgements and sensitivity of assumptions will be of particular importance to provide clear information to stakeholders that is useful for decision making.
The combined skill of Deloitte's business valuation experts and specialist accounting standards team can help you navigate this uncertainty and provide your organisation with an in-depth interpretation of the application of the accounting standards as they are applicable to impairment and valuations.
