Covid-19: How will the impact of Covid-19 affect impairment testing? has been saved
Perspectives
Covid-19: How will the impact of Covid-19 affect impairment testing?
Declines in the stock market can trigger testing for impairment of assets, goodwill and other long-lived intangible assets for impairment.
The financial crisis of 2008–2009 provides a guide on how companies viewed impairment testing during periods of market volatility. Our analysis shows that the impairments recognized by companies in our sample closely align with decreases in their stock price.
Recommendations
Covid-19: business modelling can support monitoring performance, scenario planning and strategic decision making
Scenario planning and modelling
Deloitte Investment Banking Services
Investment Banking Services in times of COVID-19