Impairment Accounting: GAAP vs. iGAAP Original post by Debbie
Donner of Demand Media Impairment accounting involves the
tracking of a company’s assets, such as land, buildings,
equipment and machinery. Assets are sometimes at risk of
declining in value due to technological advancements, poor
business management or new competition. Impairment of assets,
used in impairment accounting, is the diminishing of an asset’s
value, strength, quality or amount. Generally accepted
accounting principles (GAAP) and internationally generally
accepted accounting principles (iGAAP) have some significant
differences in the treatment of impairment of assets. The GAAP
are accounting rules set by the Financial Accounting Standards
Board (FASB). The rules are designed to ensure that all
accountants in the U.S. are using identical or nearly identical
standards when preparing financial statements. The GAAP support
transparency in accounting practices. They simplify the task of
comparing financial statements between companies or with