SEC comments, impairments, and bitcoin prices

Bitcoin price volatility may trigger impairment concerns for bitcoin miners.

I participated in a podcast with John Jennings of The Corporate Counsel a few weeks ago. The podcast is available here:

https://www.thecorporatecounsel.net/nonmember/InsideTrack/2024/01_24_Usvyatsky.htm

In the podcast, we discussed impairments and impairment-related SEC comments, including:

• An overview of the impairment concept and accounting rules.

• SEC’s comments to Kraft Heinz about goodwill and intangible assets impairments.

• The most common impairment-related issues raised in SEC comments.

• Best practices in providing impairment-related disclosure to investors.

• Best practices in addressing SEC comments.

It is common for the SEC to seek clarity about goodwill or intangible assets impairments, as we’ve seen in SEC comments to Kraft Heinz. However, changes in market conditions or company-specific events may lead the SEC to comment on the fair value of tangible assets.

Let’s look at SEC comments to Terawu…