Page 197 - F1 Integrated Workbook STUDENT 2018
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Non-current assets – IAS 23, IAS 38 & IAS 36
Impairment reviews are required when there is an indication of impairment.
The following situations may indicate that an asset has been impaired:
decline in market value
technological, legal or economic changes
physical damage
plans to dispose of asset.
3.2 Recognition and measurement of an impairment loss
When the recoverable amount of an asset is below its carrying amount, the
difference is an impairment loss and must be recorded.
An impairment loss should be recorded as an expense in the statement of profit or
loss, unless the asset has previously been revalued, in which case the impairment
can be offset against the revaluation surplus.
Even if there are no indications of impairment, we must always test annually for
impairment for goodwill acquired in a business combination and intangible assets
with indefinite useful lives.
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