Fixed Asset Impairment

Question 1

How to calculate impairment loss under US GAAP

Answer 1

Step 1- determine impairment:
PV of undiscounted CF - CV, if positive , no impairment
if negative go to step 2
Step 2:  calculate impairment
- FV (PV of discounted CF)  - CV

Question 2

How to calculate Impairment loss under IFRS

Answer 2

only 1 step
compare Fixed asset recoverable amount - CV
Fixed asset recoverable amount is the greater of
- Fixed asset Value in use = PV of FCF
- Fair Value - Cost to Sell - FV- Cost to sell