What is the order of testing for impairment if you have multiple impairment analyses (i.e. long-lived assets and goodwill)?
Impairment testing
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If goodwill and other assets are assessed for impairment at the same time, the following is the order of assets to be assessed for impairment:
1) Other assets (i.e. accounts receivables, inventory, investments) under applicable guidance
2) Indefinite-lived intangibles under ASC 350
3) Long-lived assets- under ASC 360
4) Goodwill- ASC 350
Goodwill is assessed for impairment last because it is tested at the reporting unit level, which includes all the aforementioned assets in the reporting unit’s carrying value.