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