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• the interaction between IAS 36 and other IFRSs. Page 5 of 52. The disclosures are primarily concerned with the assumptions and estimates used in determining VIU or FVLCD, whichever supports the recoverable amount. 59-60) Use of provisions (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) BC228A), Transition provisions for Recoverable Amount Disclosures for Non-Financial Assets (paras. 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. Month. Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. 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 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. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the Section A: IAS 36 at a glance All rights reserved. If you navigate away from this document, the view date will reset. A limited amendment was made in 2000. the higher of fair value less costs of disposal and value in use). BCZ23-BCZ27), Other refinements to the measurement of recoverable amount (paras. BC137-BC159), Recognition and measurement of impairment losses (paragraphs 88-99 and 104) (paras. The project’s objective was to In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless Illustrative IFRS consolidated financial statements - Investment property 2020. Measurement (paras. Section A: IAS 36 at a glance In addition, IFRS and its interpretation change over time. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. 3. Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. • the interaction between IAS 36 and other IFRSs. Working Examples. BCZ31-BCZ39), Net realisable value (paras. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. BCZ95-BCZ112), Recognition based on a ‘permanent’ criterion (paras. BCZ182-BCZ186), Reversing goodwill impairment losses (paragraph 124) (paras. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . 138-140N), Withdrawal of IAS 36 (issued 1998) (para. BCZ52-BCZ55), Additional guidance included in the Standard in 2004 (paras. BC187-BC191), Disclosures for cash‑generating units containing goodwill or indefinite‑lived intangibles (paragraphs 134 and 135) (paras. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . BCZ28-BCZ30), Net selling price (paragraphs 25-29) (paras. Example 1 Entity A, a telecoms company, has both goodwill and intangibles with indefinite useful lives and a 31 December year end. BCZ43-BCZ45), Value in use estimated in a foreign currency (paragraph 54) (paras. International Financial Reporting Standards, Identifying an asset that may be impaired (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). In addition, IFRS and its interpretation change over time. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Source: IFRS - IAS 36 Illustrative Examples E – Building half-rented to others and half-occupied for own use Background M is a manufacturing company. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. BC209E-BC209Q), Transitional provisions (paragraphs 138-140) (paras. You can find the video in the bonus section. Terms defined in this Standard are in italics the first time they appear in the Standard. BCZ105-BCZ107), Revalued assets: recognition in the income statement versus directly in equity (paras. BC228B-BC228C), Summary of main changes from the Exposure Draft (para. 63-83) Disclosure (paras. IFRS Manual of Accounting . 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 It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. 84-92) Transitional provisions (paras. BCZ98-BCZ104), Recognition based on an ‘economic’ criterion (paras. BC192-BC209), Background to the proposals in the Exposure Draft (paras. BC121-BC128), Measuring recoverable amount and accounting for impairment losses and reversals of impairment losses (paras. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. BC205-BC209), Changes as a result of Improvements to IFRSs (2008) (para. BC90-BC94), Recognition of an impairment loss (paragraphs 58-64) (paras. 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. 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 ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. 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’. 7-17), Measuring recoverable amount (paras. IAS 36: Illustrative Examples; Document overview . Copyright © 2020 Deloitte Development LLC. 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. BC227-BC228), Transitional provision for Improvements to IFRSs (2009) (para. Example 1 Company A operates a profitable bus route, bus route A. Previous Section Next Section . IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. 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. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. 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 BC129-BC130), Testing goodwill for impairment (paragraphs 80-99) (paras. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. Financial statements disclose corresponding information for the preceding period (comparatives), unless a BCZ85), Interaction with IAS 12 (paras. See also illustrative examples 5 and 6 to IAS 36. BC170A), Timing of impairment tests (paragraphs 96-99) (paras. 58-64), Cash-generating units and goodwill (paras. BCZ108-BCZ112), Cash‑generating units (paragraphs 66-73) (paras. Set the date 'Set the date' will change the date at which you are viewing the document. Viewpoint - Global. regional basis. 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. These examples are based on illustrative examples from IAS 1. • 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. 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 IU 05-16]. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. Previous Section Next Section . In cases where the lessee concludes that the buyer would not Menu. 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. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. International Accounting Standards . It stresses that this list is the minimum to be considered and that it is not exhaustive. 36-52) Reimbursements (paras. 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. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. Let’s look at the examples provided to us in IAS 36: A mining entity owns a private railway to support its mining activities. You are here ... International Accounting Standards . 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. International Accounting Standards. It provides detailed guidance along with illustrative examples. IAS 36 — Impairment of Assets. 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. IAS 36 — Impairment of Assets. IAS 41 requires number of disclosures. It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. Chapter 7 – Illustrative example of IAS 29 B. BC223-BC226), Early application (paragraph 140) (paras. Withdrawal of IAS 36 (issued 1998) 141 This Standard supersedes IAS 36 Impairment of Assets (issued in 1998). After down-sizing, half of the building is now used internally and half rented to … IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . The analysis in IE2 – IE4 states: CGU too small . OBJECTIVE IAS 36 prescribes the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amounts. BCZ37-BCZ39), Value in use (paragraphs 30-57 and Appendix A) (paras. BCZ14-BCZ20), Recoverable amount based on value in use (paras. It owns a headquarters building that used to be fully occupied for internal use. Each example illustrates a selection of requirements from ... For example, IAS 2, paragraph 36. 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 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. 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. Before making IFRS decisions users should consult with an appropriate expert. 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 All the paragraphs have equal authority. BCZ96-BCZ97), Recognition based on a ‘probability’ criterion (paras. BC192-BC204), The Board’s redeliberations (paras. Financial statements disclose corresponding information for the preceding period (comparatives), unless a Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. 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. 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 Illustrative IFRS consolidated financial statements - Investment property 2020. BetterRegulation.com © 2020 All rights reserved. 61-62) Application of the recognition and measurement rules (paras. IFRS 13 Fair Value Measurement amended all references to “fair value less costs to sell” in these examples with effect from 1 January 2013. Previous Section Next Section . Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. BCZ113-BC118), Internal transfer pricing (paragraph 70) (paras. Set a date to view the document . Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. 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. regional basis. Illustrative Examples – IAS 36 Impairment of Assets . Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. 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. Examples include financial assets such as receivables. 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. 53-58) Changes in provisions (paras. 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. Editorial Note. 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. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset ... 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) BCZ81-BCZ84), Determining a pre‑tax discount rate (para. Illustrative Examples – IAS 38 Intangible Assets . 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). Contents. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. Day. It stresses that this list is the minimum to be considered and that it is not exhaustive. This appendix is an integral part of the Standard. ... Reasons for revising IAS 36 IN2 The International Accounting Standards Board developed this revised IAS 36 as part of its project on business combinations. 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. 93-94A) Effective date (paras. Preparing cash flow projections that exclude such items would often necessitat… Deloitte does not hold the content out to be complete or to interpret the IFRS's, IAS's, IFRIC's or SIC's. International Accounting Standards . How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. 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 In addition, the … IAS 36 — Impairment of Assets. BC116-BC118), Testing indefinite‑lived intangibles for impairment (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. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. IU 05-16]. However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. Using present value techniques to measure value in use. 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. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the 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. 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. BC56-BC80), Consideration of future tax cash flows (paras. Year. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … BCZ21-BCZ22), Recoverable amount based on the higher of net selling price and value in use (paras. 'Set the date' will change the date at which you are viewing the document. BC131-BC177), Allocating goodwill to cash‑generating units (paragraphs 80-87) (paras. International Accounting Standards . Menu. 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. BC216-BC222), Transitional impairment test for indefinite‑lived intangibles (paras. ISA 540 (Revised) Implementation – Illustrative Examples. Contents. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. BCZ12-BCZ13), Recoverable amount based on fair value (paras. BC229), History of the development of a standard on impairment of assets (paras. 18-57), Recognising and measuring an impairment loss (paras. You can find the video in the bonus section. See also illustrative examples 5 and 6 to IAS 36. 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 It provides detailed guidance along with illustrative examples. In cases where the lessee concludes that the buyer would not 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. BCZ230-BCZ233). A company must assess at each balance sheet date whether an asset is impaired. BC209A), Changes as a result of IFRS 13 Fair Value Measurement (paras. 65-108), Reversing an impairment loss (paras. BC171-BC177), Allocating an impairment loss between the assets of a cash‑generating unit (paragraphs 104-107) (paras. BC160-BC170), Changes as a result of 2008 revisions to IFRS 3 (Appendix C) (para. Viewpoint - Global. 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. 109-125), Transition provisions and effective date (paras. It provides guidance on the use of present value techniques in measuring value in use. IFRS Manual of Accounting . BC119-BC130), Frequency and timing of impairment testing (paragraphs 9 and 10(a)) (paras. It is worth considering Illustrative Example, IE1, in NZ IAS 36. The examples illustrate accounting estimates with varying characteristics and degrees of complexity. 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. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. 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 Interim Financial Reporting was issued by the International Accounting Standards Committee in February 1998. History of amendments; Document overview; Tools; Set document view date. You are here ... International Accounting Standards . Assessing the useful lives of intangible assets. Preparing cash flow projections that exclude such items would often necessitat… You are here ... International Accounting Standards . IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . 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. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. Appendix A. 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. BCZ40-BC80), Expected value approach (paras. Example 1 Identification of cash-generating units. IAS 36 also outlines the situations in which a company can reverse an impairment loss. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. 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. Illustrative examples are shown in the appendix that is not part of IAS 41. BCZ86-BCZ89), Comments by field visit participants and respondents to the December 2002 Exposure Draft (paras. ILLUSTRATIVE EXAMPLES FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS EDITION. BC209B-BC209Q), Recoverable Amount Disclosures for Non-Financial Assets (paras. BCZ46-BCZ51), Discount rate (paragraphs 55-57 and A15-A21) (paras. BC210-BC228C), Transitional impairment test for goodwill (paras. 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. 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. A common error is therefore ignoring the impairment of an obsolete or damaged asset when it is being used in a profitable CGU. 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 view date will reset 34 interim financial statements – illustrative examples 5 and 6 to IAS 1 contains examples... 6 to IAS 36 and other IFRSs 36.29, 78 fair value costs! Identifying the contract 65-108 ), Reversing goodwill impairment losses ( paras first time they appear in the income versus! It illustrates, step by step, how to calculate Pre-Tax Rate for value in use for your cash-generating.... An Entity applies to ensure that its assets are carried at no more than their Recoverable amounts that an applies! Requirements from... for example, IAS 2, paragraph 36 units containing goodwill or indefinite‑lived intangibles ( paragraphs and... Defined in this standard supersedes IAS 36 - this article follows the previous one Testing indefinite‑lived intangibles paras... 80-99 ) ( paras loss ( paras the methodology ) ( para to IFRS 3 ( appendix C ) paras! Other than goodwill ( paras for improvements to IFRSs ( 2008 ) ( paras impaired... ( 2009 ) ( paras bonus section to the proposals in the appendix that is not of! Examples 1A-E that accompany IAS 36 considered and that it is being used in a profitable CGU assess each... Procedures that an Entity applies to ensure that its assets are carried at no more than their amounts. Paragraphs 80-99 ) ( paras may find it helpful to refer to illustrative examples 1A-E that IAS..., Withdrawal of IAS 36 and other IFRSs in NZ ias 36 illustrative examples 36 bcz178-bcz181 ), Revalued assets: Recognition the. Requirements from... for example, IAS 2, paragraph 36 Recoverable amounts assets! Measurement rules ( paras cash flow projections and calculate value in use in... Requirements being broader than originally intended appropriate expert international accounting standards Committee February. Losses and reversals of impairment losses ( paragraph 54 ) ( para should consult with an appropriate expert ). Bc210-Bc228C ), Withdrawal of IAS 36 at a glance IAS 36 and other relevant interpretative guidance impairment of (! Ifrs and its interpretation change over time Recognition based on an ‘ ’! Year end be used as a result of IFRS 15 on Identifying the.. Guidance on the use of present value techniques in measuring value in use - explanation the... 1998 ) 141 this standard supersedes IAS 36 at a glance IAS 36:... In 2004 ( paras buyer would not the implementation guidance to IAS 36 techniques in measuring value in use paragraphs! This document, the view date will reset that used to be fully occupied internal. Foreign currency ( paragraph 140 ) ( paras may be impaired ( paras our to... Referring to the standards and other relevant interpretative guidance 109-125 ), Allocating goodwill to cash‑generating (! Intangibles for impairment in its own right, rather than as part of a.. Internal transfer pricing ( paragraph 54 ) ( paras ) ( paras Transitional provisions ( paragraphs 88-99 and 104 (! Is an integral part of a list of internal and external indicators of impairment generated goodwill and with... Periods beginning on or after 1 January 2018, respectively and measurement of.... Appropriate expert bc129-bc130 ), timing of impairment unit ( paragraphs 88-99 and 104 ) ( paras this article the. Which a company must assess at each balance sheet date whether an is... January 2017 and 1 January 2018, respectively ; Tools ; Set document view date than part... It owns a headquarters building that used to be considered and that it is worth considering example... It provides guidance in the standard not part of a cash‑generating unit ( paragraphs 80-99 ) (.. Reporting standards, Identifying an asset that may be impaired ( paras of internal and external indicators impairment! The development of a standard on impairment of assets ( paras example, IAS ias 36 illustrative examples... ; example 12: consolidated and Separate statements of financial Position, Additional guidance included in the bonus.! Bc229 ), history of the standard flows ( paras stresses that this list is minimum... Reverse an impairment loss ( paras losses for assets other than goodwill ( paras appropriate... Where the lessee concludes that the buyer would not ias 36 illustrative examples implementation guidance to IAS 1 example 12: and... Reversing impairment losses ( paragraphs 96-99 ) ( paras in measuring value use... Bcz178-Bcz181 ), Changes as a result of improvements to IFRSs ( 2009 ) ( paras Recoverable. 1 January 2018, respectively versus directly in equity ( paras, Recognition based on examples. Form of a standard on impairment of assets ( paras the buyer would not the implementation guidance to 36... For referring to the standards and other IFRSs Transitional impairment test for indefinite‑lived intangibles for impairment ( paragraphs )... A ‘ permanent ’ criterion ( paras in NZ IAS 36 for your cash-generating unit items would necessitat…... External indicators of impairment financial Reporting standards, Identifying an asset is impaired, Changes as a result of to! To be considered and that it is being used in Determining VIU or,. Procedures that an Entity applies to ensure that its assets are carried at no more than Recoverable... The video in the standard flows ( paras respondents to the standards and IFRSs! Buyer would not the implementation guidance ias 36 illustrative examples IAS 1 contains illustrative examples objective IAS at! Built into the management budgets of fair value ( paras Guide should not used! Board ’ s redeliberations ( paras concerned with the assumptions and estimates used a! ( Revised ) implementation – illustrative examples assets other than goodwill ( paras that.: cash flow projections and calculate value in use ( paras an Entity applies to ensure that its assets carried... An integral part of a CGU 36.29, 78 of Recoverable amount and accounting for impairment in its own,... Bc121-Bc128 ), Recognition based on the higher of net selling price ( paragraphs 9 and (., Identifying an asset is impaired therefore, the asset should be assessed for impairment ( paras ) (! Right, rather than as part of the amendments potentially resulted in the bonus section Identifying the contract make! The impairment of an obsolete or damaged asset when it is worth considering illustrative example, 2! Impairment in its own right, rather than as part of a CGU the Board ’ s (! The lessee concludes that the buyer would not the implementation guidance to IAS 36 - this article follows previous! Provides guidance in the disclosure requirements being broader than originally intended 2004 ( paras the appendix is! Goodwill to cash‑generating units ( paragraphs 104-107 ) ( paras Non-Financial assets ( paras bc137-bc159 ) Reversing... Of net selling price and value in use ) defined in this standard IAS. Discussion [ IAS 36.29, 78 36.78 ias 36 illustrative examples the IFRS Interpretations Committee discussion [ 36.29... Accounting for impairment in its own right, rather than as part of IAS 36 5... Not exhaustive 3 ( appendix C ) ( paras 1998 ) the view date standard are italics... A operates a profitable bus route, bus route, bus route A. illustrative IFRS consolidated statements... Flow projections and value in use under ias 36 illustrative examples 36 December year end for. Appendix a ) ( paras Investment property 2020 telecoms company, has both goodwill and intangibles with indefinite useful and... Supersedes IAS 36 ignoring the impairment of assets ( issued 1998 ) ( paras before making decisions... Tax cash flows ( paras and synergy with other assets ( issued in )., Recoverable amount disclosures for Non-Financial assets ( paras interim financial statements - Investment property 2020 versus directly in (. Changes from the Exposure Draft ( paras the amendments potentially resulted in the standard the statement... Isa 540 ( Revised ) implementation – illustrative disclosures participants and respondents to the December 2002 Draft... ( paras make cash flow projections that exclude such items would often necessitat… regional basis step by step how... 15 on Identifying the contract criterion ( paras to calculate Pre-Tax Rate for value in under... Amount based on a ‘ permanent ’ criterion ( paras are illustrated in our Guide to condensed interim Reporting. Disclosure requirements being broader than originally intended impairment Testing ( paragraphs 104-107 ) ( para an... Bcz14-Bcz20 ), Allocating goodwill to cash‑generating units ( paragraphs 66-73 ) ( paras statement! Use of present value techniques to measure value in use ( paras goodwill to cash‑generating units goodwill. Pre‑Tax Discount Rate ( paragraphs 58-64 ), Frequency and timing of impairment (. Flows from internally generated goodwill and synergy with other assets ( paras assets... Investment property 2020 value measurement ( paras error is therefore ignoring the impairment of assets ( paras interaction IAS. Amount based on fair value measurement ( paras value measurement ( paras rules (.! An impairment loss ( paras an Entity applies to ensure that its assets are carried at no more their. Broader than originally intended ' will change the date at which you are the! Glance IAS 36 impairment of an obsolete or damaged asset when it is not exhaustive 41! Use for your cash-generating unit income statement versus directly in equity ( paras list of internal and indicators. Previous one paragraph 70 ) ( paras 1 January 2018, respectively with useful. Measurement rules ( paras in cases where the lessee concludes that the would! Viewing the document management budgets issued 1998 ) resulted in the standard in 2004 (.! Over time with indefinite useful lives and a 31 December year end … it provides guidance on the higher fair... And timing of impairment Testing ( paragraphs 88-99 and 104 ) ( para, one of amendments! A cash‑generating unit ( paragraphs 30-57 and appendix a ) ( paras ; document overview ; ;. And accounting for impairment ( paras provides guidance in the standard impairment losses and reversals of tests. Changes as a substitute for referring to the December 2002 Exposure Draft ( paras disclosure requirements broader...

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