Asset Impairment Services

Asset impairment services provide a write-off of certain assets found to be worth less than book value. Adams Capital determines the likelihood of impairment of long-lived assets and certain identifiable intangibles based on Statement of Financial Accounting Standards No. 121 (FAS 121).

FAS 121 establishes accounting standards for the impairment of long-lived assets, certain identifiable intangibles, and goodwill. This Statement states that long-lived assets and certain identifiable intangibles should be reviewed for impairment whenever events or changes in circumstances indicate that the book value of an asset may not be recoverable.

In performing an asset impairment study, Adams Capital estimates an asset’s expected future cash flows. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset, an impairment loss will be recognized by adjusting the asset’s book value downward by the impairment loss. If the sum of the expected undiscounted future cash flows is greater than the carrying amount of the asset’s book value, no impairment loss is recognized. FAS 121 does not allow an upward adjustment to the asset’s book value.

Any impaired intangible assets may be written down to fair market value. Companies must now represent to their auditors that intangible assets are carried at undiscounted future cash flow value or less. Our services allow management to monitor intangible asset values and avoid audit surprises.

Adams Capital’s professionals are experts in providing asset impairment services to maximize cash flow. Our backgrounds in finance, accounting, taxation, and law, and our experience with over 2,000 public and private transactions, allow us to provide credible valuation conclusions.

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