Overview

This new Section (which replaces Intangible Assets Held by Not-For-Profit Organizations, Section 4432) requires the application of Goodwill and Intangible Assets, Section 3064, in Part II of the Handbook for intangible assets held by organizations, and provides guidance on contributed assets and write-downs of assets.

The main changes from Section 4432 are as follows:

• Intangible assets are written down to fair value or replacement cost to reflect partial impairments when conditions indicate that the assets no longer contribute to an organization's ability to provide goods and services, or that the value of future economic benefits or service potential associated with the intangible assets are less than their net carrying amounts.
• Examples describe conditions that may indicate impairment of intangible assets.
• Disclosure requirements in Impairment of Long-lived Assets, Section 3063 in Part II, are required for impairments of intangible assets.

History of Section 4434

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Not-for-Profit Ad­vi­sory Com­mit­tee meet­ings

• None

Amendments under consideration

• None