Page 196 - F1 Integrated Workbook STUDENT 2018
P. 196
Chapter 11
IAS 36 – Impairment of assets
3.1 Overview
IAS 36 Impairment of Assets defines an impairment loss as 'the amount by which
the carrying amount of an asset exceeds its recoverable amount' (IAS 36, para
6).
Recoverable amount
is the higher of
Net selling price Value in use
Net selling price = fair value – costs to sell
Value in use = Present value of estimated future cash flows arising from use and
disposal of asset.
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