Company: ASGN
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000890564-25-000008
Chunk: 60

Company: ASGN Inc
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 60
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 audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to an account or disclosure that is material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Goodwill and Identifiable Intangible Assets, net — Creative Circle Reporting Unit — Refer to Notes 2 and 6 of the financial statements

Critical Audit Matter Description

The Company performed qualitative impairment tests of goodwill and indefinite-lived trademarks for all reporting units. The qualitative impairment tests indicated that there was no goodwill or indefinite-lived trademark impairment as of the annual assessment date on October 31, 2024. The Company analyzed qualitative factors, including (i) macroeconomic, industry and market conditions, (ii) cost factors, (iii) overall financial performance compared with prior projections, (iv) the excess of fair value over carrying value as of the most recent quantitative assessment performed, and (v) other relevant entity-specific events to determine whether it was more likely than not that the fair values of the reporting units and indefinite-lived trademarks were less than their carrying amounts as a basis for determining whether it is necessary to perform a quantitative goodwill or indefinite-lived trademark impairment test. 

Given the recent financial performance of the Creative Circle reporting unit and the judgments used to determine whether it is more likely than not that impairment of the underlying goodwill and indefinite-lived trademark has occurred, including management’s judgment as it relates to their evaluation of macroeconomic, industry and market considerations, and the overall financial performance, we identified this to be a critical audit matter. Auditing management’s conclusions that the goodwill and indefinite-lived trademark related to the Creative Circle reporting unit were recoverable involved subjective judgment and an increased extent of effort, including the need to involve our fair value specialists.

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How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s qualitative assessment of goodwill and indefinite-lived trademark impairment for the Creative Circle reporting unit included the following