IMPAIRMENT

Question 1

IFRS Section for Impairment of Long Lived Assets

Answer 1

IAS36

Question 2

IAS36 Four Step Process

Answer 2

1. Determine Level of Asset Grouping
2. Identify when to test for impairment
3. Determine the recoverable amount
4. Test for impairment and record loss.

Question 3

IFRS impairment equals to

Answer 3

Recoverable amount - Carrying Amount

Question 4

ASPE section for impairment?

Answer 4

ASPE 3063

Question 5

ASPE 3063 steps?

Answer 5

1.Identify Asset or Asset group
2. Monitor for indicators of impairment
3. Recoverable amount (undiscounted CF)
4.CV-FV

Question 6

Internal Indicator of Impairment?

Answer 6

evidence of obsolescence or physical damage
•
significant changes in the use of the asset/CGU, such as discontinuance, disposal, or restructuring
•
declining asset/CGU performance

Question 7

External indicators of impairment?

Answer 7

significant decline in market value
•
significant change in the technological, market, economic, or legal environment in which the
entity operates, having an adverse effect on the use of the asset
•
increases in market interest rates, decreasing the asset/CGU recoverable amount

Question 8

Reversal of Impairment loss ? IFRS ONLY

Answer 8

In this case, the
asset is written up to the lesser of its recoverable amount and the carrying value that would
have existed (net of depreciation) had the asset never been written down. The reversal of
the impairment loss is recognized in net income.

Question 9

IFRS - Components of determining recoverable amount

Answer 9

Determine the recoverable amount
The recoverable amount must be determined; this is defined as the greater of:
•
fair value less costs to dispose
•
value in use