During the year, Nelson Company conducted an impairment analysis for three assets: a building, an operating license, and goodwill. The carrying values of the assets as of the beginning of the year were as follows: building, $20,000; operating license, $38,000; goodwill, $120,000. It was found that each one of the assets was impaired. Impairment losses were recognized as follows: building, $4,000; operating license, $23,000; goodwill, $94,000. The year-end fair values of all three of these assets were determined using internally generated data.

Prepare the Level 1, Level 2, and Level 3 disclosures required under Topic 820.

This module concludes with two cases.

• Sprint Nextel 2007

• China Telecommunications Industry 2008

These cases allow you to explore various issues associated with asset valuation and fair value disclosures. These cases focus on the estimation of fair values of nonfinancial assets. Both cases are for companies in the telecommunications industry. The fact that companies in this industry have many intangible assets leads to interesting valuation questions.