Impairment decline: the quantity by which the carrying number of an asset or cash-creating device exceeds its recoverable volume
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paragraphs 18–57 established out the requirements for measuring recoverable volume. These needs also utilize the phrase ‘an asset’ but apply equally to someone asset and a cash‑building device.
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An impairment loss recognised in prior periods for an asset apart from goodwill shall be reversed if, and only if, more info There was a change from the estimates utilized to determine the asset’s recoverable volume Considering that the final impairment loss was recognised.
If an impairment decline is recognised, any associated deferred tax belongings or liabilities are established in accordance with IAS twelve by evaluating the revised carrying level of the asset with its tax foundation (see Illustrative Case in point 3).
Carrying quantity: the quantity at which an asset is recognised in the harmony sheet immediately after deducting gathered depreciation and accumulated impairment losses
It's not generally necessary to determine equally an asset’s fair value significantly less expenditures of disposal and its value in use. If both of those amounts exceeds the asset’s carrying sum, the asset is just not impaired and it is not important to estimate one other amount.
The estimate of net cash flows to get gained (or paid out) for that disposal of an asset at the conclusion of its helpful lifestyle is determined in an identical approach to an asset’s reasonable worth significantly less fees of disposal, besides that, in estimating Those people Web cash flows:
you'll find observable indications which the asset’s value has enhanced significantly over the time period.
Estimates accustomed to measure recoverable amounts of cash‑generating units made up of goodwill or intangible assets with indefinite helpful life
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will be the smallest identifiable group of assets that generates cash inflows that happen to be mainly impartial on the cash inflows from other assets or teams of property.E2
An entity shall evaluate at the end of each reporting period of time regardless of whether There is certainly any indication that an asset may very well be impaired. If any these sign exists, the entity shall estimate the recoverable amount of the asset.