Impairment testing valuation under U.S. and Japanese GAAP

Impairment testing valuation under U.S. and Japanese GAAP

After the closing of an unprofitable mill was deemed to be a triggering event, one of the top four milling operators in the U.S. engaged Stout to perform an impairment analysis. We first assessed the value of the shuttered mill's real and personal property under a stand-alone basis premise of value. We then determined the fair value of the company’s ongoing operations to estimate the indicated goodwill impairment loss. Because the U.S. company is owned by a Japanese parent company, we performed the impairment analysis in accordance with both U.S. GAAP and Japanese GAAP.