Impairment: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Link with Net book value.) |
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''Financial reporting''. | ''Financial reporting''. | ||
A reduction in the recoverable amount of | A reduction in the recoverable amount of an asset below its carrying amount. | ||
Relevant accounting standards include IAS 36 | Impairment may apply, among other assets, to tangible fixed assets, goodwill, loans or inventory. | ||
Relevant accounting standards include IAS 36, Section 27 of FRS 102 and IAS 2. | |||
| Line 16: | Line 18: | ||
More generally, any weakening, damage or reduction in value. | More generally, any weakening, damage or reduction in value. | ||
Causes of impairment may include damage, obsolescence and declining credit quality. | |||
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* [[FRS 102]] | * [[FRS 102]] | ||
* [[Goodwill]] | * [[Goodwill]] | ||
* [[IAS 2]] | |||
* [[IAS 36]] | * [[IAS 36]] | ||
* [[Impaired loan]] | * [[Impaired loan]] | ||
* [[Net book value]] | |||
* [[Net realisable value]] | |||
Revision as of 13:10, 27 May 2017
1.
Financial reporting.
A reduction in the recoverable amount of an asset below its carrying amount.
Impairment may apply, among other assets, to tangible fixed assets, goodwill, loans or inventory.
Relevant accounting standards include IAS 36, Section 27 of FRS 102 and IAS 2.
2.
The related accounting adjustment required to reduce the carrying amount of the asset in the balance sheet - to the new lower recoverable amount - and to recognise an impairment loss.
3.
More generally, any weakening, damage or reduction in value.
Causes of impairment may include damage, obsolescence and declining credit quality.
