#100 Impairment & IFRS

Question 1

Regarding the impairment of assets under IFRS, what is the recoverable cost/amount?

Answer 1

The recoverable amount is the greater of:

1. Net realizable value
2. Value in use (discounted cashflows)

Question 2

Under IFRS, when does impairment testing occur?

Answer 2

At the balance sheet date and whenever there is a triggering event

Question 3

Can impairment losses be recovered? (Under IFRS)

Answer 3

Yes, previously recognized impairment losses can be reversed