Summary
Highlights
The video introduces IAS 36, which ensures that assets are not carried above their recoverable amount, and outlines its objective. Sylvia from cpdbox.com presents the information.
An asset is impaired when its carrying amount exceeds its recoverable amount, defined as the higher of fair value less costs to sell and value in use.
Entities must assess external and internal indicators of impairment at each reporting period. Specific rules apply to intangible assets with indefinite useful life.
Discusses how to determine recoverable amount, whether through fair value less costs to sell or value in use, including methods and exceptions.
Upon identifying impairment, the loss is calculated and recognized in financial statements, considering the asset valuation model used, either cost or revaluation.
Explains the concept of CGUs, how impairment is calculated for groups of assets, and the role of corporate assets and goodwill.
Covers conditions under which impairment loss can be reversed, except for goodwill, highlighting differences with U.S. GAAP.