Page 14 - PowerPoint Presentation

IMPAIRMENT OF ASSETS

How to calculate an impairment loss?

• Step 4: Recognise the impairment loss in the

financial statements

• If, and only if, the recoverable amount of an asset is less

than its carrying amount, the carrying amount of the

asset shall be reduced to its recoverable amount. (IAS

36.59)

• An impairment loss shall be recognised immediately in

profit or loss, unless the asset is carried at revalued

amount under another standard (for example, in

accordance with the revaluation model in IAS 16
Property, plant and equipment). Any impairment loss of

a revalued asset shall be treated as a revaluation

decrease under that other standard. (IAS 36.60)

14