Page 8 - PowerPoint Presentation
P. 8
IMPAIRMENT OF ASSETS
What is impairment?
• Impairment will occur when the carrying amount of
the asset in the books of the entity exceeds the
asset's recoverable amount. This will lead to an
impairment loss.
• The impairment loss may be reversed if there is any
indication that an impairment loss recognised for
an asset in prior years may no longer exist or may
have decreased.
8
