Stout performed Step II long-lived asset impairment testing procedures under U.S. GAAP for a specific facility of the commercial truck division of a Japanese-owned multinational automotive manufacturer.

The work included identification of the asset group to be tested; an inspection of a manufacturing facility larger than 500,000 square feet; utilization of both the market and cost approaches to value; estimation of the fair value of the personal property, real property, and right-of-use assets of the facility; and calculation of the overall impairment charge to be recorded.

Stout’s analysis was successfully reviewed by a national audit practice, and Stout was able to assist the client accurately and efficiently with its financial reporting requirements.