Page 76 - SBR Integrated Workbook STUDENT S18-J19

Chapter 5

Impairment of assets

6.1 Impairment

IAS 36 Impairment of Assets says that an impairment review should be carried out:

 Annually for certain assets (e.g. intangible non-current assets with an indefinite
useful life)

 Where there are indications of impairment for other assets.

Indications of impairment include:

 A decline in the market value of an asset

 Adverse changes to the environment in which the entity operates

 Asset obsolescence, damage or idleness

 The value of the entity as a whole being less than the carrying amount of its net
assets.

Further detail can be found in Section 6 of Chapter 5 in your Study Text.

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