Indicators of impairment

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Financial reporting - impairment - international financial reporting standards (IFRS) - International Accounting Standard 36 (IAS 36).

Under IAS 36, 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.

Indications of impairment may include:

  • External factors, for example market conditions, changes in technology, legal or regulatory changes,
  • Internal factors for example evidence of obsolescence or physical damage.

See also