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Corporate Solutions

Valuation and Analysis

Do you know how long your assets will remain profitable? We determine their real useful life and compare it with tax life to give you concrete alternatives.

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The starting point

The longer the useful life of your assets, the greater the returns you earn

We help you determine the useful life of your assets with precision, compare it with the registered tax life, and from there define concrete options for control, depreciation, maintenance and sale.

That difference (between what the asset actually produces and what the accounting record says) is usually where the decision lies.

Financial analysis of asset useful life and impairment

C-15 Impairment Analysis

Surface the hidden losses in your financial statements

Impairment analysis of long-lived assets (under NIF C-15, the Mexican financial reporting standard on impairment of long-lived assets) lets you detect, measure and prevent losses that are not visible in the accounting record.

Warning signs

Signs of impairment that can affect your company

01

Underused machinery

Equipment operating below installed capacity.

02

Plans to sell a unit

Divestment plans for a business line.

03

Plans to suspend assets

Decisions to halt operations in whole or in part.

04

Declining sales and profitability

A sustained drop over recent fiscal years.

05

Unfavorable market conditions

Structural changes in the operating sector.

06

Tax and legal changes

Regulatory changes that affect operations.

What you get

Concrete courses of action

01

Control

Tracking of the real condition of each asset.

02

Depreciation

Criteria adjusted to technical reality.

03

Maintenance

Interventions prioritized by impact.

04

Sale

Identification of the optimal moment to exit.

Frequently Asked Questions (FAQ)

About useful life and impairment

What is an asset useful life analysis?
It is the technical determination of how long an asset will remain productive. It is compared against the registered tax life to identify differences and define courses of action for control, depreciation, maintenance and sale.
What is a C-15 impairment analysis?
It is the impairment analysis of long-lived assets that lets you detect, measure and prevent hidden losses in the financial statements. It identifies when the recorded value of an asset exceeds the value that can actually be recovered.
What are the signs of asset impairment?
Underused machinery, plans to sell a business unit, plans to suspend assets, a sustained decline in sales and profitability, unfavorable market conditions, and the impact of tax or legal changes.
Why does the difference between useful life and tax life matter?
Because tax life is an accounting convention and useful life is a technical reality. When the two diverge, a company may be depreciating assets that still produce or carrying on its books equipment that no longer adds value.
What information is needed for an impairment or useful life analysis?
Recent financial statements, the current depreciation schedule and the maintenance history of the relevant assets. That is enough to identify the signs that call for a deeper analysis.
What happens if the impairment of an asset is not recognized in time?
The book value stays above the real value, which distorts the financial statements and can come to light for the first time in an audit, a sale or a board review.
What is the difference between the accounting useful life and the real useful life of an asset?
The accounting useful life follows an estimate defined at the outset; the real useful life depends on use, maintenance and operating conditions. When the two diverge too far, the book value stops reflecting the reality of the asset.

Do you know how much useful life your assets have left?

A conversation to understand your asset base and the analysis you need.

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