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COVID-19 and Impairment of Intangible Assets

COVID-19 and Impairment of Intangible Assets

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August 2020

Intangible assets are sometimes the most significant asset on a company’s balance sheet. In the technology and life sciences sectors, those assets, which are specifically identifiable, include licenses, patents, intellectual property, and in-process research and development (“IPR&D”), among others. These assets are recorded on the balance sheet through a variety of means, including, but not limited to, business combinations, asset acquisitions and internal development. Regardless of the means, once recorded, they all have one thing in common – they are subject to impairment analyses.

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