IAS 36

International Accounting Standard 36, dealing with impairment of assets.

Issued by the International Accounting Standards Board.

IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. the higher of fair value less costs of disposal and value in use).

With the exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an asset, and the test may be conducted for a 'cash-generating unit' where an asset does not generate cash inflows that are largely independent of those from other assets.

See also

• Assets
• Cash-generating unit
• Fair value
• Financial reporting
• FRS 102
• Goodwill
• IAS 16 (Tangible assets - Property, plant and equipment)
• IAS 38 (Intangible assets)
• Impairment
• Impairment test
• Intangible assets
• Indicators of impairment
• International Financial Reporting Standards (IFRS)
• Value in use

Other resources

• IAS 36 IAS Plus
• IAS 36 text - IFRS