Impairments Flashcards
1
Q
When is an asset impaired
A
When carrying value (at reporting date) is above recoverable amount.
Recoverable amount = higher of FV less costs to sell and the value in use
Carrying amount asset + goodwill
2
Q
Impairment recognition
A
Cr asset
Dr P&L (if goodwill should be split between P&L and NCI)
3
Q
Impairment (partial goodwill)
A
All of impairment to P&L none to NCI
But goodwill needs to be grossed up. So if you own 70% of sub and goodwill is 50 you would do
goodwill = 50/70 *100
Only used for calc of impairment
