Impairment Testing

The New Zealand equivalent to International Accounting Standard 36 (NZ IAS 36) brought about a fundamental change to the accounting treatment of goodwill and other intangible assets.

All companies which account according to NZ GAAP now have to comply with NZ IAS 36 which involves:

• Allocation and valuation of all assets and liabilities to ‘reporting units’;
• Annual impairment tests for goodwill; and
• No amortisation of goodwill and indefinite-lived intangible assets

To apply this standard, you need a solid understanding of the standard itself, its valuation requirements and experts experienced in undertaking this kind of work.

If you require impairment testing we can help

PwC had significant insight into the development of these new rules and their adoption in New Zealand. We have extensive experience in this field and are best placed to perform impairment reviews or value intangible assets.

We recognise that the initial implications of adoption and the transition itself are not the only elements of NZ IAS 36: the need to have a process in place for subsequent reviews is vital. We can work with you to remove any inconvenience associated with this process.

We deliver a multidisciplinary team of experts that understands the accounting and valuation elements of the task and the implications for you and your auditors.