Impairment test: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
(Create page - source - IAS 36.) |
(Mend link.) |
||
| (One intermediate revision by the same user not shown) | |||
| Line 15: | Line 15: | ||
* [[Amortisation]] | * [[Amortisation]] | ||
* [[Carrying amount]] | * [[Carrying amount]] | ||
* [[Cash | * [[Cash-generating unit]] (CGU) | ||
* [[Condition]] | * [[Condition]] | ||
* [[Depreciation]] | * [[Depreciation]] | ||
| Line 26: | Line 26: | ||
* [[IFRS 9]] | * [[IFRS 9]] | ||
* [[Impaired loan]] | * [[Impaired loan]] | ||
* [[Impairment | * [[Impairment ]] | ||
* [[Indicators of impairment]] | * [[Indicators of impairment]] | ||
* [[Intangible assets]] | * [[Intangible assets]] | ||
Latest revision as of 10:40, 11 October 2023
Financial reporting - impairment testing - international financial reporting standards (IFRS) - IAS 36.
Impairment testing is designed to ensure that the carrying amount of an asset (or Cash Generating Unit (CGU)) in a reporting entity's balance sheet does not exceed its recoverable amount.
The recoverable amount is the higher of:
- Fair value less costs to sell the asset, and
- Value in use
If the carrying amount is greater than the recoverable amount, an impairment must be recognised.
See also
- Amortisation
- Carrying amount
- Cash-generating unit (CGU)
- Condition
- Depreciation
- Fair value
- Fixed assets
- FRS 102
- Goodwill
- IAS 2
- IAS 36
- IFRS 9
- Impaired loan
- Impairment
- Indicators of impairment
- Intangible assets
- International Financial Reporting Standards (IFRS)
- Net book value
- Net realisable value
- Recoverable amount
- Revaluation
- Value in use
