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Impairment
Impairment of Assets: Introduction to IAS 36
Introduction
Non-current assets are usually measured in the financial statements at cost or a revalued amount, which is depreciated over the asset’s useful economic life.
Impairment: Identifying an Impaired Asset under IAS 36
What Constitutes Impairment?
The basic requirement for IAS 36 – Impairment of Assets, is that assets must be assessed to whether there’s an indication they may be impaired.
Impairment: Disclosures for IAS 36
Disclosures
- Disclosures regarding each material impairment recognised or reversed
- Disclosures regarding aggregate impairment losses and the aggregate reversals of impairment losses
- Unallocated goodwill
Impairment: Recognition & Measurement for IAS 36
Individual Assets
Requirements
The requirements for recognising and measuring an impairment loss are as follows: