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1 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--Continued ADJUSTERS INTERNATIONAL, INC. AND SUBSIDIARIES December 31, 2016 and 2015 1 NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Intangible Asset--Goodwill--Continued: Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are subject to at least annual impairment testing using a two-step approach as prescribed by FASB ASC Topic 350-20-35. o �� In 2015, Management determined that the value of goodwill that wel recorded on the books relating to a 2010 acquisition was impaired and had no future benefit to the Company. As a result $22,500 (the total amount) was written off and is included ii depreciation and amortization expense in the accompanying 2015 consolidated statement o op rere ations. 4,:zz,c‘ Property and Equipment: Property and equipment s,sta teDDcost less accumulated depreciation. Depreciation is provided using straight-line and accelerated methods over the estimated useful lives of the assets. Repair and maintenance exppeensessaare charged to expense when incurred. The Company follows FASB ASC To ic50-40-15, "Accounting for the Costs of Computer Software Developed or Obtained for 1T tee_rnal Use". Among other provisions, FASB ASC Topic 350-40-15 requires that entities capitalize certain internal use software costs once certain criteria are met. Under FASBASC Topic 350-40-15, overhead, general and administrative and training costs are not capitalized�Software and website development are amortized on the straight line and accelerated methods over the estimated useful lives of the assets (principally 3-5 1 years). c© Income Taxes: Income taxes for the Company are accounted for using the asset and liability method pursuant to FASB ASC Topic 740-10-05, "Accounting for Income Taxes". Deferred. taxes are recognized for the tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of existing assets and liabilities using enacted statutory rates in effect. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. In addition, FASB ASC Topic 740-10-05 requires the recognition of future tax benefits to the extent that realization of such benefits is more likely than not. A separate provision for income taxes has not been recorded for 126 Business Park Partners since the partners are taxed on their proportionate share of the partnership's income or allowed to deduct their proportionate share of the partnership's loss. -12-