|
Objective:
It ensures
that an asset is carried at no more than its
recoverable amount. Definition:
Sudden fall in
value of asset. It occurs if
Net
Book value(NBV)˂Recoverable amount Recoverable
Amount = Higher of-
Fair
value less cost to sell (i.e. current market price if an active market exists)
Value
in use (I.e. Present value of future cash flows using the asset. Indicators
Impairment:
External
Sources- Market value has declined Changes in technological or
economical environment having an adverse effect
Internal
Sources- Evidence of obsolescence or
damage to the asset Internal assessment indicates
that performance of the asset has become worse
IAS
– 36 requires an entity to conduct annual impairment reviews Recognition: For
assets carried at historical cost-charged as an expense in SOPL (i.e./S) For
valued assets
If
Impairment˂ previous revaluation:
Revaluation
Reserve (OCI) DR
Non-Current
Assets (SOPF) CR
If
Impairment˂ previous revaluation:
Revaluation
Reserve (OCI) DR
Impairment
Expenses (SOPL) DR
Non-Current
Assets (SOPF) CR Impairment start
of the year: Calculate
depreciation for the year on new value (after deduction impairment) Impairment end of
the year: Depreciation
for the year is based on the NBV before impairment value. Revaluation gain
after impairment:
Non-current
assets DR
Reversal
of impairment (SOPL) CR Revaluation
reserve (if revaluations gain ˂ previous impairment)CR
Cash generating
Unit (CGU):
It
is the smallest identifiable group of assets which generates cash flows
independently
-When
assessing the impairment of assets it will not always be possible to base the
impairment review on individual assets.
Impairment
loss is allocated among the CGU as follows –
- Any
other asset which is obviously impaired --
Purchased
Goodwill relating to CGU
Other
assets in CGU on a pro-rata based on carrying amount of assets.
|
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন