Page 16 - 2018 Finac1 Test 3 Class Slides - 3. Impairment Of Assets
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TEST 3 PREPARATION
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)
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