Impairment test: Difference between revisions
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* [[Amortisation]] | * [[Amortisation]] | ||
* [[Carrying amount]] | * [[Carrying amount]] | ||
* [[Cash generating unit]] (CGU) | * [[Cash-generating unit]] (CGU) | ||
* [[Condition]] | * [[Condition]] | ||
* [[Depreciation]] | * [[Depreciation]] | ||
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
