Effortlessly Stay GAAP Compliant with Integral's Impairment Testing Copilot

Summary

Integral's Impairment Testing Copilot helps web3 teams stay GAAP compliant by automating impairment testing, while providing unparalleled granularity, transparency, and auditability. The new product includes automated periodic impairment test, threshold policies that be configured at an asset level, and a full audit trail of past tests, lots, and pricing methods.

The Impairment Testing Problem

Impairment testing is a crucial aspect of managing crypto assets, as it helps organizations stay GAAP compliant. With the ever-increasing importance of digital currencies, large crypto organizations must conduct regular impairment tests on their assets. However, this process can be time-consuming and prone to inaccuracies due to its manual nature.

First, the organization must gather all relevant data on their assets, including purchase prices, current market values, and any impairments that have already been recognized.

Next, is analyzing the data to determine if any additional impairments need to be recognized. This analysis involves comparing the current market value of the asset to its carrying value, which is the original purchase price minus any recognized impairments. If the market value is lower than the carrying value, an impairment must be recognized.

Finally, the organization must document their analysis and any impairments recognized in their financial statements and disclosures. Overall, web3 impairment testing is time-consuming and prone to errors. Integral's automated solution is a game-changer for large crypto organizations.

Key Features of Integral's Impairment Testing Copilot

Integral is revolutionizing impairment testing for web3 organizations in three ways:

• Automated impairment testing that runs periodically;

• Ability to configure impairment threshold policies at an asset or company level;

• Full audit trail of past tests, lots, and pricing methods.

With Impairment Testing Copilot, scaling web3 teams can generate accurate, auditable results, making it 10x easier to remain GAAP compliant.

How Integral's Impairment Testing Copilot Works

Accounting teams can configure Impairment Testing Copilot to match company policies in minutes:

1. Create an impairment testing policy;

2. Select assets to include in the impairment testing;

3. Create a policy with price thresholds and frequency that match company policies;

4. Done! Impairment tests will now run automatically, and upon review, can be committed to the general ledger in just a click.

Integral’s automated impairment tests include a full audit trail of all previous tests, as well as tax lots and pricing methods. This makes it easier to identify any issues or discrepancies that may arise during the testing process.

Furthermore, the audit trail provided by Integral is tamper-proof, meaning that it cannot be altered or deleted once it has been created. This ensures that the results of the impairment testing process are accurate and reliable, and that they can be trusted by stakeholders.

The Benefits of Integral's Impairment Testing Solution

1. Save time and resources by automating the impairment testing process;

2. Reduce the risk of errors associated with manual calculations;

3. Stay GAAP compliant, easily;

4. Access a comprehensive audit trail for transparency and accountability.

One of the main benefits of using Integral's automated impairment testing capabilities is the significant reduction in manual work required. Traditionally, conducting impairment tests on crypto assets has been a time-consuming and labor-intensive process, requiring significant resources and expertise. With Integral's automated solution, users can run these tests quickly and easily, freeing up valuable time and resources for other critical tasks.

Another key benefit of using Integral's solution is the ability to maintain a full audit trail of all impairment tests conducted. This is particularly important for large crypto organizations that want to be GAAP compliant. With Integral's solution, users can easily track and document all tests conducted, providing a clear and transparent record of compliance.

Integral's automated impairment testing capabilities also offer greater accuracy and consistency compared to manual testing methods. By removing the potential for human error and ensuring that tests are conducted consistently and according to established protocols, Integral's solution provides more reliable results and greater confidence in the accuracy of impairment assessments.

Finally, using Integral's automated impairment testing capabilities can help organizations stay ahead of the curve in an ever-evolving regulatory landscape. As regulations continue to evolve and become more complex, having a reliable and efficient solution for conducting impairment tests can help organizations stay compliant and avoid potential penalties or legal issues.

Interested in Trying Impairment Testing Copilot?

If you're interested in using Impairment Testing Copilot and automating impairment testing process, you can book a demo with us here.