10. Impairment of assets

Question 1

10. What assets are included under IAS 36 ‘Impairment of Assets’?

Answer 1

• Property, plant and equipment
• Identifiable intangible assets
• Goodwill
Other assets are covered under their standard

Question 2

10. T/F. An impairment loss is never allocated to a liability. Only assets can be impaired

Answer 2

True

Question 3

10. How is an impairment loss calculated?

Answer 3

Carrying amount - Recoverable amount = Impairment loss

Recoverable amount can be either (but higher of) FVLCOD or VIU