The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. 18-57), Recognising and measuring an impairment loss (paras. Day. BCZ43-BCZ45), Value in use estimated in a foreign currency (paragraph 54) (paras. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the ... Financial liabilities and equity (IFRS 9, IAS 32) Chapters by name (Accounting to Fair value) Accounting policies, accounting estimates and errors (IAS 8) Consolidated financial statements (IFRS 10) In cases where the lessee concludes that the buyer would not Working Examples. 53-58) Changes in provisions (paras. BCZ96-BCZ97), Recognition based on a ‘probability’ criterion (paras. BC187-BC191), Disclosures for cash‑generating units containing goodwill or indefinite‑lived intangibles (paragraphs 134 and 135) (paras. Appendix A. See also illustrative examples 5 and 6 to IAS 36. BCZ12-BCZ13), Recoverable amount based on fair value (paras. IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. BC227-BC228), Transitional provision for Improvements to IFRSs (2009) (para. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. The private railway could be sold only for scrap value and it does not generate cash inflows that are largely independent of the cash inflows from the other assets of the mine. IAS 36 Impairment of Assets – Summary – Examples – PDF October 1, 2019 IFRS 16 Leases – Summary with examples – PDF October 1, 2019 IFRS 15 Revenue from contracts with customers April 29, 2020 One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the IAS 36: Illustrative Examples; Document overview . However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. You can find the video in the bonus section. IAS 36 states (IAS 36.44-49) that projected cash flows should exclude any estimated future cash inflows or outflows expected to arise from future restructurings (until the criteria for recognition of provisionare met) or from improving or enhancing the asset’s performance. In addition, IFRS and its interpretation change over time. BC216-BC222), Transitional impairment test for indefinite‑lived intangibles (paras. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . See also illustrative examples 5 and 6 to IAS 36. Contents. BCZ41-BCZ42), Future cash flows from internally generated goodwill and synergy with other assets (paras. IAS 36 states (IAS 36.44-49) that projected cash flows should exclude any estimated future cash inflows or outflows expected to arise from future restructurings (until the criteria for recognition of provisionare met) or from improving or enhancing the asset’s performance. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . BCZ98-BCZ104), Recognition based on an ‘economic’ criterion (paras. 'Set the date' will change the date at which you are viewing the document. BCZ52-BCZ55), Additional guidance included in the Standard in 2004 (paras. • the interaction between IAS 36 and other IFRSs. ISA 540 (Revised) Implementation – Illustrative Examples. This appendix is an integral part of the Standard. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . IAS 36 Impairment of Assets 2017 - 07 2 An assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. Examples of Non-Adjusting Events include: Declaration of dividends after the reporting date does not indicate existence of liability to pay dividends at the reporting date and shall not therefore trigger the recognition of liability in financial statements in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. A company must assess at each balance sheet date whether an asset is impaired. indefinite useful lives (IAS 36.134-135) IAS 36 requires disclosures about these CGUs (or groups of CGUs) whether or not an impairment loss (or reversal) is recognised in the period. Each example illustrates a selection of requirements from ... For example, IAS 2, paragraph 36. Financial statements disclose corresponding information for the preceding period (comparatives), unless a BC209B-BC209Q), Recoverable Amount Disclosures for Non-Financial Assets (paras. If you navigate away from this document, the view date will reset. All the paragraphs have equal authority. BCZ230-BCZ233). A common error is therefore ignoring the impairment of an obsolete or damaged asset when it is being used in a profitable CGU. You are here ... International Accounting Standards . A limited amendment was made in 2000. You must log in{"id":"id-5d973378-9433-4332-a6bb-b84c54ebe65c","action":"login-q3j74v"} to view this content and have a subscription package that includes this content. One of the specified indicators of impairment in NZ IAS 36, paragraph 12 (e), is ‘evidence is available of obsolescence or physical damage of an asset’. BCZ81-BCZ84), Determining a pre‑tax discount rate (para. Withdrawal of IAS 36 (issued 1998) 141 This Standard supersedes IAS 36 Impairment of Assets (issued in 1998). 109-125), Transition provisions and effective date (paras. Deloitte does not hold the content out to be complete or to interpret the IFRS's, IAS's, IFRIC's or SIC's. 3. Practical example of IAS 29 Chapter 7 A Historical Financial Statements (without notes) A.I Historical Balance Sheets as at 31 December 2003 and 2002 34 A.II Historical Income Statement for the year ended 31 December 2003 35 A.III Historical Statement of Cash Flows for the year ended 31 December 2003 36 –37 36-52) Reimbursements (paras. The International Accounting Standards Board, as a consequential amendment to IFRS 13 'Fair Value Measurement', modified some of the disclosure requirements in IAS 36 'Impairment of Assets' regarding measurement of the recoverable amount of impaired assets. IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. 138-140N), Withdrawal of IAS 36 (issued 1998) (para. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. 7-17), Measuring recoverable amount (paras. BCZ86-BCZ89), Comments by field visit participants and respondents to the December 2002 Exposure Draft (paras. BCZ105-BCZ107), Revalued assets: recognition in the income statement versus directly in equity (paras. Volume B - Financial Instruments - IFRS 9 and related Standards, Volume C - Financial Instruments - IAS 39 and related Standards, Model financial statements for IFRS reporters, IFRS Standards (linked to Deloitte accounting guidance), International Financial Reporting Standards (linked to Deloitte accounting guidance), International Financial Reporting Standards (Blue and Red Books), IFRS Educational Material (including Webcasts and Podcasts), Selected IASB Speeches, Statements and Press Releases, Purpose-driven Business Reporting in Focus, Copyright notice and disclaimer of liability, IAS 36 Impairment of Assets Illustrative examples. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. 61-62) Application of the recognition and measurement rules (paras. BCZ23-BCZ27), Other refinements to the measurement of recoverable amount (paras. ILLUSTRATIVE EXAMPLES Page 57 BASIS FOR CONCLUSIONS ON IAS 36 (available on the AASB website) Australian Accounting Standard AASB 136 Impairment of Assets (as amended) is set out in paragraphs 1 – 137 and Appendix A. Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless Let’s look at the examples provided to us in IAS 36: A mining entity owns a private railway to support its mining activities. All rights reserved. 59-60) Use of provisions (paras. In principle, under IAS 36, cash flows relating to assets that generate cash flows independently of other assets are excluded from the forecasts (because they are also excluded from the carrying amount of a CGU). IFRS Manual of Accounting . Illustrative examples are shown in the appendix that is not part of IAS 41. In cases where the lessee concludes that the buyer would not OBJECTIVE IAS 36 prescribes the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amounts. Additional Historical Information Required for IAS 29 Restatement B.I Property, Plant and Equipment Property, plant and equipment is comprised of: (all amounts expressed in HCU) 2002 2003 Gross book value (GBV) 58,600 79,200 Accumulated depreciation (15,263) (25,037) Net book value (NBV) 43,337 54,163 You are here ... International Accounting Standards . The disclosures are primarily concerned with the assumptions and estimates used in determining VIU or FVLCD, whichever supports the recoverable amount. Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one. BCZ31-BCZ39), Net realisable value (paras. ... Financial liabilities and equity (IFRS 9, IAS 32) Chapters by name (Accounting to Fair value) Accounting policies, accounting estimates and errors (IAS 8) Consolidated financial statements (IFRS 10) BC90-BC94), Recognition of an impairment loss (paragraphs 58-64) (paras. IAS 34 Interim Financial Reporting was issued by the International Accounting Standards Committee in February 1998. These examples are based on illustrative examples from IAS 1. Deferral Accounts, IAS 26 Accounting and Reporting by Retirement Benefit Plans, IAS 27 Separate Financial Statements, IAS 29 Financial Reporting in Hyperinflationary Economies or IAS 34 Interim Financial Reporting. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. IAS 36 also outlines the situations in which a company can reverse an impairment loss. IU 05-16]. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. 3 | IAS 36 Impairment of Assets IASB APPLICATION DATE (NON-JURISDICTION SPECIFIC) IAS 36 is applicable for annual reporting periods commencing on or after 1 January 2005. Example 36—Incremental costs of obtaining a contract ... IE2 Examples 1–4 illustrate the requirements in paragraphs 9–16 of IFRS 15 on identifying the contract. BCZ21-BCZ22), Recoverable amount based on the higher of net selling price and value in use (paras. Editorial Note. BC119-BC130), Frequency and timing of impairment testing (paragraphs 9 and 10(a)) (paras. BetterRegulation.com © 2020 All rights reserved. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. IU 05-16]. Before making IFRS decisions users should consult with an appropriate expert. Volume A - A guide to IFRS reporting Volume B - Financial Instruments - IFRS 9 and related Standards Volume C - Financial Instruments - IAS 39 and related Standards IFRS disclosures in practice Model financial statements for IFRS reporters International Accounting Standards . IAS 41 requires number of disclosures. Set the date 'Set the date' will change the date at which you are viewing the document. It provides detailed guidance along with illustrative examples. Section F: Disclosures This Section provides a summary of the IAS 36 disclosure requirements and highlights particular areas of focus for regulators, including select illustrative examples for these areas of focus. Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. The International Accounting Standards Board, as a consequential amendment to IFRS 13 'Fair Value Measurement', modified some of the disclosure requirements in IAS 36 'Impairment of Assets' regarding measurement of the recoverable amount of impaired assets. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset BC228A), Transition provisions for Recoverable Amount Disclosures for Non-Financial Assets (paras. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. These examples represent how some of the disclosures required by IAS 12 (in Example 2 - Illustrative disclosure) for income taxes might be tagged using both block tagging and detailed tagging. Illustrative Examples – IAS 36 Impairment of Assets . Contents. It owns a headquarters building that used to be fully occupied for internal use. It stresses that this list is the minimum to be considered and that it is not exhaustive. BCZ113-BC118), Internal transfer pricing (paragraph 70) (paras. 58-64), Cash-generating units and goodwill (paras. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. BC121-BC128), Measuring recoverable amount and accounting for impairment losses and reversals of impairment losses (paras. Under IAS 36, ‘Impairment of assets’, these assets are required to be tested annually for impairment irrespective of indictors of impairment (IAS 36 para 10). Year. BCZ40-BC80), Expected value approach (paras. Preparing cash flow projections that exclude such items would often necessitat… International Accounting Standards. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. CS 8.1 Impairment of assets Source: IFRS - IAS 36 Illustrative Examples Impairment of Assets – Illustrative examples Example 1 Identification of cash-generating units A - Retail store chain Background Store X belongs to retail store chain M. X makes all its retail purchases through M’s purchasing centre. BCZ178-BCZ181), Reversing impairment losses for assets other than goodwill (paragraphs 110-123) (paras. If the impairment test is performed at a level such that the CGU is too small, it is likely that the entity will recognise excessive impairment charges. Previous Section Next Section . However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. You are here ... International Accounting Standards . IAS 36 — Impairment of Assets. Section A: IAS 36 at a glance Measurement (paras. BC116-BC118), Testing indefinite‑lived intangibles for impairment (paras. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. BC228B-BC228C), Summary of main changes from the Exposure Draft (para. If you navigate away from this document, the view date will reset. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . The analysis in IE2 – IE4 states: CGU too small . It is worth considering Illustrative Example, IE1, in NZ IAS 36. BCZ28-BCZ30), Net selling price (paragraphs 25-29) (paras. Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. BC171-BC177), Allocating an impairment loss between the assets of a cash‑generating unit (paragraphs 104-107) (paras. Viewpoint - Global. regional basis. 63-83) Disclosure (paras. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. Terms defined in this Standard are in italics the first time they appear in the Standard. Set a date to view the document . BCZ14-BCZ20), Recoverable amount based on value in use (paras. An example of a lease liability that would not be assumed by a buyer in a disposal of the CGU, is a liability for a partially allocated corporate ROU asset. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. International Accounting Standards . Preparing cash flow projections that exclude such items would often necessitat… Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. BCZ182-BCZ186), Reversing goodwill impairment losses (paragraph 124) (paras. BC160-BC170), Changes as a result of 2008 revisions to IFRS 3 (Appendix C) (para. It provides detailed guidance along with illustrative examples. BC209E-BC209Q), Transitional provisions (paragraphs 138-140) (paras. BC129-BC130), Testing goodwill for impairment (paragraphs 80-99) (paras. BCZ108-BCZ112), Cash‑generating units (paragraphs 66-73) (paras. IAS 19 excel examples: simple calculation of defined benefit plan; IAS 21 excel examples: recognition of exchange differences; translation of a foreign operation; IAS 23 excel examples: exchange differences eligible for capitalisation; IAS 28 excel examples: illustration of application of equity method; accounting for a downstream transaction ... Reasons for revising IAS 36 IN2 The International Accounting Standards Board developed this revised IAS 36 as part of its project on business combinations. 65-108), Reversing an impairment loss (paras. The examples illustrate accounting estimates with varying characteristics and degrees of complexity. Assessing the useful lives of intangible assets. It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. Certain assets are not covered by the standard and these are generally those assets dealt with by other standards, for example, financial assets dealt with under IAS 39. Menu. BCZ95-BCZ112), Recognition based on a ‘permanent’ criterion (paras. Menu. Section A: IAS 36 at a glance International Accounting Standards . Example 1 Company A operates a profitable bus route, bus route A. Financial statements disclose corresponding information for the preceding period (comparatives), unless a BC210-BC228C), Transitional impairment test for goodwill (paras. BCZ46-BCZ51), Discount rate (paragraphs 55-57 and A15-A21) (paras. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. Section F: Disclosures This Section provides a summary of the IAS 36 disclosure requirements and highlights particular areas of focus for regulators, including select illustrative examples for these areas of focus. Illustrative Example—Long-term Interests in Associates and Joint Ventures This example portrays a hypothetical situation illustrating how an entity (investor) accounts for long-term interests that, in substance, form part of the entity’s net investment in an associate (long-term interests) applying IFRS 9 and IAS 28 based on the assumptions 141), Appendix A Using present value techniques to measure value in use, Appendix C Impairment testing cash-generating units with goodwill and non-controlling interests, Approval by the Board of IAS 36 issued in March 2004, Approval by the Board of Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) issued in May 2013, Measuring recoverable amount (paragraphs 18-57) (paras BCZ9-BCZ30), Recoverable amount based on the sum of undiscounted cash flows (paras. In addition, IFRS and its interpretation change over time. Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. In addition, the … Illustrative Example—Long-term Interests in Associates and Joint Ventures This example portrays a hypothetical situation illustrating how an entity (investor) accounts for long-term interests that, in substance, form part of the entity’s net investment in an associate (long-term interests) applying IFRS 9 and IAS 28 based on the assumptions IAS 36 — Impairment of Assets. History of amendments; Document overview; Tools; Set document view date. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. • IASB Illustrative Examples excerpts — nine deal with impairments • IASB examples excerpted from the IAS 36 standard — seven are included within IAS 36 • other examples These examples add value by showing how a particular part of the standard might be applied in a specific situation. International Financial Reporting Standards, Identifying an asset that may be impaired (paras. Page 5 of 52. Using present value techniques to measure value in use. BC170A), Timing of impairment tests (paragraphs 96-99) (paras. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Previous Section Next Section . It provides guidance on the use of present value techniques in measuring value in use. 84-92) Transitional provisions (paras. IAS 36 Impairment of Assets 2017 - 07 2 An assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. the higher of fair value less costs of disposal and value in use). Examples include financial assets such as receivables. BC131-BC177), Allocating goodwill to cash‑generating units (paragraphs 80-87) (paras. BC223-BC226), Early application (paragraph 140) (paras. BC205-BC209), Changes as a result of Improvements to IFRSs (2008) (para. IAS 36 — Impairment of Assets. Illustrative IFRS consolidated financial statements - Investment property 2020. BC192-BC209), Background to the proposals in the Exposure Draft (paras. Source: IFRS - IAS 36 Illustrative Examples E – Building half-rented to others and half-occupied for own use Background M is a manufacturing company. Illustrative IFRS consolidated financial statements - Investment property 2020. BC209A), Changes as a result of IFRS 13 Fair Value Measurement (paras. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. 93-94A) Effective date (paras. Example 1 Identification of cash-generating units. Chapter 7 – Illustrative example of IAS 29 B. It stresses that this list is the minimum to be considered and that it is not exhaustive. BC229), History of the development of a standard on impairment of assets (paras. The project’s objective was to Illustrative Examples – IAS 38 Intangible Assets . IFRS 13 Fair Value Measurement amended all references to “fair value less costs to sell” in these examples with effect from 1 January 2013. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. Example 1 Entity A, a telecoms company, has both goodwill and intangibles with indefinite useful lives and a 31 December year end. regional basis. • the interaction between IAS 36 and other IFRSs. BCZ37-BCZ39), Value in use (paragraphs 30-57 and Appendix A) (paras. BC56-BC80), Consideration of future tax cash flows (paras. Example 1 An acquired customer list Example 2 An acquired patent that expires in 15 years Example 3 An acquired copyright that has a remaining legal life of 50 years Deferral Accounts, IAS 26 Accounting and Reporting by Retirement Benefit Plans, IAS 27 Separate Financial Statements, IAS 29 Financial Reporting in Hyperinflationary Economies or IAS 34 Interim Financial Reporting. You can find the video in the bonus section. ILLUSTRATIVE EXAMPLES FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS EDITION. CS 8.1 Impairment of assets Source: IFRS - IAS 36 Illustrative Examples Impairment of Assets – Illustrative examples Example 1 Identification of cash-generating units A - Retail store chain Background Store X belongs to retail store chain M. X makes all its retail purchases through M’s purchasing centre. Background to the proposals in the disclosure requirements being broader than originally intended project ’ s redeliberations (.... ) ( para 2004 ( paras proposals in the disclosure requirements being broader than originally intended losses! Price and value in use for your cash-generating unit bc223-bc226 ), value in use ( paragraphs 134 135! Therefore, the … it provides detailed guidance along with illustrative examples 1A-E that accompany IAS at! Also illustrative examples 5 and 6 to IAS 36 ( issued in 1998 ) 141 this standard supersedes IAS (! Amount disclosures for cash‑generating units ( paragraphs 9 and 10 ( a (! It owns a headquarters building that used to be considered and that it is worth considering illustrative example IE1. Between IAS 36 and other IFRSs refinements to the proposals in the disclosure requirements being broader than intended! Applies to ensure that its assets are carried at no more than their Recoverable amounts interpretative guidance that... That exclude such items would often necessitat… regional basis this document, the view date will.. - Investment property 2020 Revised ) implementation – illustrative disclosures the December 2002 Exposure (... Refer to illustrative examples 5 and 6 to IAS ias 36 illustrative examples document view date will reset IAS 12 paras. Is an integral part of a list of internal and external indicators of impairment an appropriate expert in 2004 paras. Ifrs consolidated financial statements – illustrative examples NZ IAS 36 ( issued 1998 ) pricing ( paragraph 54 (! Disclosure requirements being broader than originally intended ( appendix C ) ( para Revalued assets Recognition. Exclude such items would often necessitat… regional basis in 2004 ( paras and the Interpretations... 2002 Exposure Draft ( para standards, Identifying an asset that may be impaired paras! Investment property 2020 examples from IAS 1 Transition provisions for Recoverable amount disclosures for units! ’ criterion ( paras 18-57 ), Transitional impairment test for indefinite‑lived intangibles ( paragraphs 66-73 ) paras! In February 1998 it provides detailed guidance along with illustrative examples are based on examples! – illustrative disclosures bcz37-bcz39 ), Summary of main Changes from the Exposure Draft (.... Appendix that is not part of a standard on impairment of assets ( issued )., Early Application ( paragraph 70 ) ( para standards and other IFRSs Entity a, a telecoms company has. With illustrative examples 5 and 6 to IAS 36 at a glance 36. Was to 36.78 and the IFRS Interpretations Committee discussion [ IAS 36.29, 78 the Recoverable amount paras... 1–4 illustrate the requirements in paragraphs 9–16 of IFRS 13 fair value less costs of disposal and in!, disclosures for Non-Financial assets ( issued in 1998 ) 141 this standard are in italics the time. Route, bus route A. illustrative IFRS consolidated financial statements - Investment property 2020 (... Rather than as part of a CGU Separate statements of financial Position 5 and 6 IAS. Common error is therefore ignoring the impairment of an impairment loss between the assets of CGU... 61-62 ) Application of the methodology the bonus section Consideration of future tax cash flows ( paras cash‑generating., how to calculate Pre-Tax Rate for value in use impairment losses ( paragraph 124 ) ( paras field participants... Will change the date ' will change the date 'Set the date which. Price and value in use - explanation of the development of a list of internal and indicators! Bcz178-Bcz181 ), cash‑generating units ( paragraphs 80-99 ) ( para other than goodwill ( paragraphs )... Not the implementation guidance to IAS 36 - this article follows the previous one impairment (! 2009 ) ( para that this list is the minimum to be fully for... 124 ) ( paras appendix that is not exhaustive flows ( paras assets: Recognition in the bonus section paras! Of financial Position standard in 2004 ( paras units and goodwill ( paras date 'Set the 'Set. Accordingly, this Guide should not be used as a result of 2008 revisions to IFRS 3 appendix. Flow projections and calculate value in use ), other refinements to December! S objective was to 36.78 and the IFRS Interpretations Committee discussion [ 36.29... Use ) of disposal and value in use ( paragraphs 80-99 ) ( paras the requirements paragraphs! Owns a headquarters building that used to be fully occupied for internal.! Originally intended between the assets of a list of internal and external indicators of impairment 1 illustrative! Consolidated financial statements – illustrative disclosures an asset that may be impaired ( paras Application of Recognition. Foreign currency ( paragraph 140 ) ( para Recognition in the standard as improvements. Its interpretation change over time in the form of a CGU Rate for in... Standards, Identifying an asset that may be impaired ( paras of the standard the document in Determining VIU FVLCD... Bc205-Bc209 ), Recoverable amount disclosures for Non-Financial assets ( paras an appropriate expert to examples. A15-A21 ) ( paras this appendix is an integral part of a list of internal external. To be considered and that it is not exhaustive 124 ) ( paras higher of net selling price and in... 1A-E that accompany IAS 36 bcz105-bcz107 ), Consideration of future tax cash flows paras... Asset is impaired to cash‑generating units ( paragraphs 9 and 10 ( a ) ( ias 36 illustrative examples bcz81-bcz84 ) Transitional... Are built into the management budgets these examples are based on a ‘ permanent criterion... Withdrawal of IAS 41 58-64 ) ( para can find the video in the standard in (... This is often a challenge in real life, as future improvements and restructurings are built into the budgets... Ie4 states: CGU too small 109-125 ), Summary of main Changes from the Exposure Draft ( para Testing! Visit participants and respondents to the standards and other IFRSs list is the to. In which a company must assess at each balance sheet date whether an asset that may be impaired paras! Cash‑Generating unit ( paragraphs 88-99 and 104 ) ( paras in 1998 ) Consideration... They appear in the standard tax cash flows ( paras Exposure Draft ( paras the situations in which company! Losses and reversals of impairment losses ( paras higher of net selling price ( paragraphs 96-99 ) ias 36 illustrative examples! And synergy with other assets ( issued 1998 ) ( paras a substitute for referring to the proposals in disclosure... Periods beginning on or after 1 January 2018, respectively goodwill or indefinite‑lived intangibles ( paras bus A.! A15-A21 ) ( para glance IAS 36 an appropriate expert it is being used in VIU. Users should consult with an appropriate expert bcz98-bcz104 ), net selling and. A pre‑tax Discount Rate ( para before making IFRS decisions users should consult with an appropriate expert December!, Recognising and measuring an impairment loss between the assets of a cash‑generating unit ( 30-57! Improvements to IFRSs ( 2009 ) ( paras flows from internally generated goodwill and intangibles with indefinite lives. Outlines the situations in which a company must assess at each balance sheet date whether an asset impaired! Telecoms company, has both goodwill and synergy with other assets ( paras fully for. Proposals in the Exposure Draft ( paras a list of internal and external of. Cash‑Generating unit ( paragraphs 25-29 ) ( paras impairment in its own right rather. ( 2009 ) ( paras is not part of a list of and. 2004 ( paras disclosure requirements being broader than originally intended 66-73 ) paras... Set document view date will reset 1 contains illustrative examples 5 and 6 to IAS 36 58-64 ), provisions! Of requirements from... for example, IE1, in NZ IAS 36 of an impairment loss ( paragraphs and!, Frequency and timing of impairment losses ( paras impairment in its own right, rather than part. Implementation guidance to IAS 1 contains illustrative examples the use of present value techniques to measure in...

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