When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps:
- What?? – Determining the scope and structure of the impairment review,
- If and when? – Determining if and when a quantitative impairment test is necessary, jump to this part here
- How? – Understanding the mechanics of the impairment test and how to recognise or reverse any impairment loss, if necessary, jump to this part here.
The objective of IAS 36 Impairment of assets is to outline the procedures that an entity applies to ensure that its assets’ carrying values are not stated above their recoverable amounts (the amounts to be recovered through use or sale of the assets). To accomplish this … Read more