Impairment of Assets

Concept Briefing:

Impairment of assets is an accounting standard (IAS 36) addressing mainly accounting for impairment of goodwill, intangible assets and property, plant and equipment. The standard includes requirements for identifying an impaired asset, measuring its recoverable amount, recognising or reversing any resulting impairment loss, and disclosing information on impairment losses or reversals of impairment losses.

IAS 36 prescribes how an enterprise should test its assets for impairment, that is:

the procedures that an enterprise should apply to ensure that its assets are not overstated in the financial statements

how an enterprise should assess the amount to be recovered from an asset (the "recoverable amount") when an enterprise should account for an impairment loss identified by this assessment

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24.01.2007. 08:12