Implementing the impairment of assets requirements of SFAS No. 144 : An empirical analysis

The provisions of Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long‐lived Assets , have raised many implementation issues for entities adhering to its increased requirements to recognize and measure the costs associated with the impairment of assets. After outlining these new requirements and some general implementation issues, the paper discusses how members of key groups view the new standard, using the responses to a mail survey. It was found that user‐oriented groups expressed significantly different viewpoints than did preparer‐oriented groups. The survey results also found many respondents stating that the new standard provides improved guidance for many complex situations, while others do not believe that the standard is cost justified.