Answer using Accounting Standards Codification

Jon Lipka recently jointed as a staff accountant in the controller's office of Beta Company. Beta Company provides warehousing services in several Mid-Atlantic cities. The Beta Company has not been performing well due to increased competition and the loss of several customers that have recently gone out of business. Jon's departmental manager suspects that the plant and equipment may be impaired and wonders whether those assets should be written down. Given the company's prior success, this issue has never arisen in the past, and Jon has been asked to conduct some research on this issue. 1. What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies). 2. Give several examples of events that would cause as asset to be tested for impairment. Does it appear the Beta Company should perform an impairment test? Explain. 3. What is the best evidence of fair value? Describe alternative methods of estimating fair value. Check ASC 820