What type of impairment does FASB ASC 350 address?

FASB ASC 350 specifically addresses the impairment of indefinite lived intangible assets, which include assets that do not have a defined useful life. This includes goodwill, trademarks, and other intangible assets that are expected to provide economic benefits indefinitely. The key aspect of this guidance is that it requires entities to perform at least annually a quantitative test for impairment to assess whether the carrying value of these intangible assets exceeds their fair value.

In contrast, finite lived intangible assets have specific amortization periods and are typically assessed for impairment through different criteria as outlined in other guidance. Real estate and tangible assets are addressed under different sections of the FASB standards and are subject to their own impairment tests, which consider other factors like depreciation and changes in market conditions.

By focusing on indefinite lived intangible assets, FASB ASC 350 ensures that businesses properly evaluate and report the value of these intangible resources, reflecting their true economic contribution over time.