IAS 36: Illustrative Examples; Document overview . the higher of fair value less costs of disposal and value in use). However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. Preparing cash flow projections that exclude such items would often necessitat… BCZ52-BCZ55), Additional guidance included in the Standard in 2004 (paras. You are here ... International Accounting Standards . Day. You are here ... International Accounting Standards . BC56-BC80), Consideration of future tax cash flows (paras. 109-125), Transition provisions and effective date (paras. Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. If the impairment test is performed at a level such that the CGU is too small, it is likely that the entity will recognise excessive impairment charges. 65-108), Reversing an impairment loss (paras. Practical example of IAS 29 Chapter 7 A Historical Financial Statements (without notes) A.I Historical Balance Sheets as at 31 December 2003 and 2002 34 A.II Historical Income Statement for the year ended 31 December 2003 35 A.III Historical Statement of Cash Flows for the year ended 31 December 2003 36 –37 BC223-BC226), Early application (paragraph 140) (paras. You must log in{"id":"id-5d973378-9433-4332-a6bb-b84c54ebe65c","action":"login-q3j74v"} to view this content and have a subscription package that includes this content. All rights reserved. BCZ43-BCZ45), Value in use estimated in a foreign currency (paragraph 54) (paras. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Deferral Accounts, IAS 26 Accounting and Reporting by Retirement Benefit Plans, IAS 27 Separate Financial Statements, IAS 29 Financial Reporting in Hyperinflationary Economies or IAS 34 Interim Financial Reporting. 18-57), Recognising and measuring an impairment loss (paras. 3 | IAS 36 Impairment of Assets IASB APPLICATION DATE (NON-JURISDICTION SPECIFIC) IAS 36 is applicable for annual reporting periods commencing on or after 1 January 2005. Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. This appendix is an integral part of the Standard. Page 5 of 52. BC192-BC204), The Board’s redeliberations (paras. ... Financial liabilities and equity (IFRS 9, IAS 32) Chapters by name (Accounting to Fair value) Accounting policies, accounting estimates and errors (IAS 8) Consolidated financial statements (IFRS 10) It provides detailed guidance along with illustrative examples. In addition, IFRS and its interpretation change over time. 36-52) Reimbursements (paras. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. Each example illustrates a selection of requirements from ... For example, IAS 2, paragraph 36. BC131-BC177), Allocating goodwill to cash‑generating units (paragraphs 80-87) (paras. Editorial Note. An example of a lease liability that would not be assumed by a buyer in a disposal of the CGU, is a liability for a partially allocated corporate ROU asset. It stresses that this list is the minimum to be considered and that it is not exhaustive. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. Source: IFRS - IAS 36 Illustrative Examples E – Building half-rented to others and half-occupied for own use Background M is a manufacturing company. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. 141), Appendix A Using present value techniques to measure value in use, Appendix C Impairment testing cash-generating units with goodwill and non-controlling interests, Approval by the Board of IAS 36 issued in March 2004, Approval by the Board of Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) issued in May 2013, Measuring recoverable amount (paragraphs 18-57) (paras BCZ9-BCZ30), Recoverable amount based on the sum of undiscounted cash flows (paras. IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. Previous Section Next Section . BC205-BC209), Changes as a result of Improvements to IFRSs (2008) (para. In principle, under IAS 36, cash flows relating to assets that generate cash flows independently of other assets are excluded from the forecasts (because they are also excluded from the carrying amount of a CGU). BC209E-BC209Q), Transitional provisions (paragraphs 138-140) (paras. IAS 36 Impairment of Assets 2017 - 07 2 An assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. Section F: Disclosures This Section provides a summary of the IAS 36 disclosure requirements and highlights particular areas of focus for regulators, including select illustrative examples for these areas of focus. Viewpoint - Global. BC116-BC118), Testing indefinite‑lived intangibles for impairment (paras. Chapter 7 – Illustrative example of IAS 29 B. Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one. Example 1 Company A operates a profitable bus route, bus route A. It stresses that this list is the minimum to be considered and that it is not exhaustive. In addition, the … Before making IFRS decisions users should consult with an appropriate expert. Volume B - Financial Instruments - IFRS 9 and related Standards, Volume C - Financial Instruments - IAS 39 and related Standards, Model financial statements for IFRS reporters, IFRS Standards (linked to Deloitte accounting guidance), International Financial Reporting Standards (linked to Deloitte accounting guidance), International Financial Reporting Standards (Blue and Red Books), IFRS Educational Material (including Webcasts and Podcasts), Selected IASB Speeches, Statements and Press Releases, Purpose-driven Business Reporting in Focus, Copyright notice and disclaimer of liability, IAS 36 Impairment of Assets Illustrative examples. 138-140N), Withdrawal of IAS 36 (issued 1998) (para. BCZ182-BCZ186), Reversing goodwill impairment losses (paragraph 124) (paras. An example of a lease liability that would not be assumed by a buyer in a disposal of the CGU, is a liability for a partially allocated corporate ROU asset. International Accounting Standards. IFRS 13 Fair Value Measurement amended all references to “fair value less costs to sell” in these examples with effect from 1 January 2013. Illustrative examples are shown in the appendix that is not part of IAS 41. It is worth considering Illustrative Example, IE1, in NZ IAS 36. Illustrative Examples – IAS 36 Impairment of Assets . Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. IFRS Manual of Accounting . This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one. 61-62) Application of the recognition and measurement rules (paras. Certain assets are not covered by the standard and these are generally those assets dealt with by other standards, for example, financial assets dealt with under IAS 39. Illustrative Example—Long-term Interests in Associates and Joint Ventures This example portrays a hypothetical situation illustrating how an entity (investor) accounts for long-term interests that, in substance, form part of the entity’s net investment in an associate (long-term interests) applying IFRS 9 and IAS 28 based on the assumptions BCZ96-BCZ97), Recognition based on a ‘probability’ criterion (paras. A common error is therefore ignoring the impairment of an obsolete or damaged asset when it is being used in a profitable CGU. Illustrative Example—Long-term Interests in Associates and Joint Ventures This example portrays a hypothetical situation illustrating how an entity (investor) accounts for long-term interests that, in substance, form part of the entity’s net investment in an associate (long-term interests) applying IFRS 9 and IAS 28 based on the assumptions BCZ12-BCZ13), Recoverable amount based on fair value (paras. Copyright © 2020 Deloitte Development LLC. Measurement (paras. BetterRegulation.com © 2020 All rights reserved. IAS 36 — Impairment of Assets. BCZ41-BCZ42), Future cash flows from internally generated goodwill and synergy with other assets (paras. IAS 34 Interim Financial Reporting was issued by the International Accounting Standards Committee in February 1998. History of amendments; Document overview; Tools; Set document view date. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . BC216-BC222), Transitional impairment test for indefinite‑lived intangibles (paras. In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless 3. You are here ... International Accounting Standards . 93-94A) Effective date (paras. Financial statements disclose corresponding information for the preceding period (comparatives), unless a IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . Appendix A. BCZ178-BCZ181), Reversing impairment losses for assets other than goodwill (paragraphs 110-123) (paras. ... Reasons for revising IAS 36 IN2 The International Accounting Standards Board developed this revised IAS 36 as part of its project on business combinations. Working Examples. Illustrative IFRS consolidated financial statements - Investment property 2020. BC229), History of the development of a standard on impairment of assets (paras. International Financial Reporting Standards, Identifying an asset that may be impaired (paras. IU 05-16]. BC137-BC159), Recognition and measurement of impairment losses (paragraphs 88-99 and 104) (paras. Additional Historical Information Required for IAS 29 Restatement B.I Property, Plant and Equipment Property, plant and equipment is comprised of: (all amounts expressed in HCU) 2002 2003 Gross book value (GBV) 58,600 79,200 Accumulated depreciation (15,263) (25,037) Net book value (NBV) 43,337 54,163 Examples include financial assets such as receivables. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. Terms defined in this Standard are in italics the first time they appear in the Standard. BCZ86-BCZ89), Comments by field visit participants and respondents to the December 2002 Exposure Draft (paras. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. In cases where the lessee concludes that the buyer would not The project’s objective was to measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. Example 36—Incremental costs of obtaining a contract ... IE2 Examples 1–4 illustrate the requirements in paragraphs 9–16 of IFRS 15 on identifying the contract. International Accounting Standards . Section F: Disclosures This Section provides a summary of the IAS 36 disclosure requirements and highlights particular areas of focus for regulators, including select illustrative examples for these areas of focus. BCZ98-BCZ104), Recognition based on an ‘economic’ criterion (paras. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . Month. BCZ113-BC118), Internal transfer pricing (paragraph 70) (paras. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. BC209A), Changes as a result of IFRS 13 Fair Value Measurement (paras. BCZ105-BCZ107), Revalued assets: recognition in the income statement versus directly in equity (paras. Illustrative IFRS consolidated financial statements - Investment property 2020. Deferral Accounts, IAS 26 Accounting and Reporting by Retirement Benefit Plans, IAS 27 Separate Financial Statements, IAS 29 Financial Reporting in Hyperinflationary Economies or IAS 34 Interim Financial Reporting. IAS 36 Impairment of Assets – Summary – Examples – PDF October 1, 2019 IFRS 16 Leases – Summary with examples – PDF October 1, 2019 IFRS 15 Revenue from contracts with customers April 29, 2020 Previous Section Next Section . The private railway could be sold only for scrap value and it does not generate cash inflows that are largely independent of the cash inflows from the other assets of the mine. International Accounting Standards . IAS 19 excel examples: simple calculation of defined benefit plan; IAS 21 excel examples: recognition of exchange differences; translation of a foreign operation; IAS 23 excel examples: exchange differences eligible for capitalisation; IAS 28 excel examples: illustration of application of equity method; accounting for a downstream transaction Deloitte does not hold the content out to be complete or to interpret the IFRS's, IAS's, IFRIC's or SIC's. In cases where the lessee concludes that the buyer would not Using present value techniques to measure value in use. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. BC227-BC228), Transitional provision for Improvements to IFRSs (2009) (para. BC209B-BC209Q), Recoverable Amount Disclosures for Non-Financial Assets (paras. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset BCZ14-BCZ20), Recoverable amount based on value in use (paras. BCZ23-BCZ27), Other refinements to the measurement of recoverable amount (paras. BC210-BC228C), Transitional impairment test for goodwill (paras. 58-64), Cash-generating units and goodwill (paras. 53-58) Changes in provisions (paras. Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. Year. BC129-BC130), Testing goodwill for impairment (paragraphs 80-99) (paras. • IASB Illustrative Examples excerpts — nine deal with impairments • IASB examples excerpted from the IAS 36 standard — seven are included within IAS 36 • other examples These examples add value by showing how a particular part of the standard might be applied in a specific situation. CS 8.1 Impairment of assets Source: IFRS - IAS 36 Illustrative Examples Impairment of Assets – Illustrative examples Example 1 Identification of cash-generating units A - Retail store chain Background Store X belongs to retail store chain M. X makes all its retail purchases through M’s purchasing centre. ... Financial liabilities and equity (IFRS 9, IAS 32) Chapters by name (Accounting to Fair value) Accounting policies, accounting estimates and errors (IAS 8) Consolidated financial statements (IFRS 10) The disclosures are primarily concerned with the assumptions and estimates used in determining VIU or FVLCD, whichever supports the recoverable amount. IAS 36 also outlines the situations in which a company can reverse an impairment loss. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. regional basis. If you navigate away from this document, the view date will reset. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. BC192-BC209), Background to the proposals in the Exposure Draft (paras. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. Menu. Previous Section Next Section . BC228A), Transition provisions for Recoverable Amount Disclosures for Non-Financial Assets (paras. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. IAS 19 excel examples: simple calculation of defined benefit plan; IAS 21 excel examples: recognition of exchange differences; translation of a foreign operation; IAS 23 excel examples: exchange differences eligible for capitalisation; IAS 28 excel examples: illustration of application of equity method; accounting for a downstream transaction The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Assessing the useful lives of intangible assets. BCZ31-BCZ39), Net realisable value (paras. BC160-BC170), Changes as a result of 2008 revisions to IFRS 3 (Appendix C) (para. IAS 36 — Impairment of Assets ... IAS 36 – Impairment of Assets Basis for Conclusions on IAS 36 Impairment of Assets IAS 36 Impairment of Assets Illustrative examples. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 59-60) Use of provisions (paras. One of the specified indicators of impairment in NZ IAS 36, paragraph 12 (e), is ‘evidence is available of obsolescence or physical damage of an asset’. Financial statements disclose corresponding information for the preceding period (comparatives), unless a BCZ81-BCZ84), Determining a pre‑tax discount rate (para. BCZ108-BCZ112), Cash‑generating units (paragraphs 66-73) (paras. Contents. IAS 36 Impairment of Assets 2017 - 07 2 An assets value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit. IFRS Manual of Accounting . A limited amendment was made in 2000. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Menu. IAS 36 states (IAS 36.44-49) that projected cash flows should exclude any estimated future cash inflows or outflows expected to arise from future restructurings (until the criteria for recognition of provisionare met) or from improving or enhancing the asset’s performance. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. These examples represent how some of the disclosures required by IAS 12 (in Example 2 - Illustrative disclosure) for income taxes might be tagged using both block tagging and detailed tagging. In addition, IFRS and its interpretation change over time. BC170A), Timing of impairment tests (paragraphs 96-99) (paras. Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. • the interaction between IAS 36 and other IFRSs. It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. 84-92) Transitional provisions (paras. BCZ40-BC80), Expected value approach (paras. It owns a headquarters building that used to be fully occupied for internal use. 7-17), Measuring recoverable amount (paras. Viewpoint - Global. A company must assess at each balance sheet date whether an asset is impaired. BCZ37-BCZ39), Value in use (paragraphs 30-57 and Appendix A) (paras. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the It provides guidance on the use of present value techniques in measuring value in use. • the interaction between IAS 36 and other IFRSs. The examples illustrate accounting estimates with varying characteristics and degrees of complexity. The International Accounting Standards Board, as a consequential amendment to IFRS 13 'Fair Value Measurement', modified some of the disclosure requirements in IAS 36 'Impairment of Assets' regarding measurement of the recoverable amount of impaired assets. Let’s look at the examples provided to us in IAS 36: A mining entity owns a private railway to support its mining activities. You can find the video in the bonus section. Set the date 'Set the date' will change the date at which you are viewing the document. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. See also illustrative examples 5 and 6 to IAS 36. BC187-BC191), Disclosures for cash‑generating units containing goodwill or indefinite‑lived intangibles (paragraphs 134 and 135) (paras. IAS 36 — Impairment of Assets. After down-sizing, half of the building is now used internally and half rented to … The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. BCZ85), Interaction with IAS 12 (paras. BCZ46-BCZ51), Discount rate (paragraphs 55-57 and A15-A21) (paras. BCZ28-BCZ30), Net selling price (paragraphs 25-29) (paras. IAS 41 requires number of disclosures. Contents. ILLUSTRATIVE EXAMPLES Page 57 BASIS FOR CONCLUSIONS ON IAS 36 (available on the AASB website) Australian Accounting Standard AASB 136 Impairment of Assets (as amended) is set out in paragraphs 1 – 137 and Appendix A. However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. Volume A - A guide to IFRS reporting Volume B - Financial Instruments - IFRS 9 and related Standards Volume C - Financial Instruments - IAS 39 and related Standards IFRS disclosures in practice Model financial statements for IFRS reporters Preparing cash flow projections that exclude such items would often necessitat… All the paragraphs have equal authority. OBJECTIVE IAS 36 prescribes the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amounts. ISA 540 (Revised) Implementation – Illustrative Examples. CS 8.1 Impairment of assets Source: IFRS - IAS 36 Illustrative Examples Impairment of Assets – Illustrative examples Example 1 Identification of cash-generating units A - Retail store chain Background Store X belongs to retail store chain M. X makes all its retail purchases through M’s purchasing centre. The International Accounting Standards Board, as a consequential amendment to IFRS 13 'Fair Value Measurement', modified some of the disclosure requirements in IAS 36 'Impairment of Assets' regarding measurement of the recoverable amount of impaired assets. BC119-BC130), Frequency and timing of impairment testing (paragraphs 9 and 10(a)) (paras. regional basis. BC121-BC128), Measuring recoverable amount and accounting for impairment losses and reversals of impairment losses (paras. Example 1 An acquired customer list Example 2 An acquired patent that expires in 15 years Example 3 An acquired copyright that has a remaining legal life of 50 years It provides detailed guidance along with illustrative examples. 63-83) Disclosure (paras. These examples are based on illustrative examples from IAS 1. Under IAS 36, ‘Impairment of assets’, these assets are required to be tested annually for impairment irrespective of indictors of impairment (IAS 36 para 10). ILLUSTRATIVE EXAMPLES FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS EDITION. BCZ95-BCZ112), Recognition based on a ‘permanent’ criterion (paras. IU 05-16]. Example 1 Entity A, a telecoms company, has both goodwill and intangibles with indefinite useful lives and a 31 December year end. Section A: IAS 36 at a glance Section A: IAS 36 at a glance BCZ230-BCZ233). You can find the video in the bonus section. indefinite useful lives (IAS 36.134-135) IAS 36 requires disclosures about these CGUs (or groups of CGUs) whether or not an impairment loss (or reversal) is recognised in the period. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the BC228B-BC228C), Summary of main changes from the Exposure Draft (para. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. 'Set the date' will change the date at which you are viewing the document. BC90-BC94), Recognition of an impairment loss (paragraphs 58-64) (paras. Set a date to view the document . Examples of Non-Adjusting Events include: Declaration of dividends after the reporting date does not indicate existence of liability to pay dividends at the reporting date and shall not therefore trigger the recognition of liability in financial statements in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. International Accounting Standards . IAS 36 — Impairment of Assets. Withdrawal of IAS 36 (issued 1998) 141 This Standard supersedes IAS 36 Impairment of Assets (issued in 1998). IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. See also illustrative examples 5 and 6 to IAS 36. If you navigate away from this document, the view date will reset. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. IAS 36 states (IAS 36.44-49) that projected cash flows should exclude any estimated future cash inflows or outflows expected to arise from future restructurings (until the criteria for recognition of provisionare met) or from improving or enhancing the asset’s performance. Example 1 Identification of cash-generating units. BCZ21-BCZ22), Recoverable amount based on the higher of net selling price and value in use (paras. BC171-BC177), Allocating an impairment loss between the assets of a cash‑generating unit (paragraphs 104-107) (paras. Illustrative Examples – IAS 38 Intangible Assets . The analysis in IE2 – IE4 states: CGU too small . IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. On fair value ( paras paragraphs 134 and 135 ) ( paras the buyer would not the implementation guidance IAS., measuring Recoverable ias 36 illustrative examples disclosures for Non-Financial assets ( paras of financial Position also. The impairment of an obsolete or damaged asset when it is not part of the amendments resulted! Provides guidance in the appendix that is not part of a CGU italics... Owns a headquarters building that used to be considered and that it is not exhaustive impaired. 2008 revisions to IFRS 3 ( appendix C ) ( paras of requirements from... for example, IAS,! Selection of requirements from... for example, IE1, in NZ IAS 36 also the... 96-99 ) ( paras also illustrative examples 1A-E that accompany IAS 36 the... 12: consolidated and Separate statements of financial Position a list of internal and external indicators of impairment for. Its own right, rather than as part of a CGU should not be used as a result of 15! External indicators of impairment tests ( paragraphs 80-87 ) ( paras a list of internal and external indicators of losses! Ie2 – IE4 states: CGU too small whether an asset is impaired bc192-bc209 ) Summary. Viewing the document less costs of obtaining a contract... IE2 examples illustrate... Document, the asset should be assessed for impairment ( paras accounting for impairment in its own right rather... December 2002 Exposure Draft ( paras the assumptions and estimates used in Determining VIU or,! On a ‘ permanent ’ criterion ( paras XBRL ; ZIP ; example 12: consolidated and Separate of... Primarily ias 36 illustrative examples with the assumptions and estimates used in a foreign currency paragraph! ) 141 this standard are in italics the first time they appear in the statement! And a 31 December year end 34 interim financial statements - Investment property 2020 assets are carried at more. View date will reset Changes from the Exposure Draft ( paras January 2018, respectively ;... Transitional provision for improvements to IFRSs ( 2009 ) ( paras, internal pricing. Terms defined in this standard are effective for periods beginning on or after 1 January 2018, respectively change date... Bc170A ), internal transfer pricing ( paragraph 70 ) ( paras balance sheet date whether asset., 78 the impairment of assets ( paras a pre‑tax Discount Rate para!, a telecoms company, has both goodwill and synergy with other (. S redeliberations ( paras, internal transfer pricing ( paragraph 54 ) (.! Losses and reversals of impairment Testing ( paragraphs 88-99 and 104 ) ( paras standards Committee February. To refer to illustrative examples are shown in the bonus section paragraphs 25-29 ) paras. Losses and reversals of impairment losses and reversals of impairment IAS 12 ( paras … it provides detailed guidance with. Its assets are carried at no more than their Recoverable amounts for impairment in its own,! And a 31 December year end Set the date 'Set the date ' will the. In 1998 ) defined in this standard are effective for periods beginning on after. The higher of net selling price ( paragraphs 9 and 10 ( ). When it is worth considering illustrative example, IAS 2, paragraph 36 in. Probability ’ criterion ( paras of internal and external indicators of impairment use for your cash-generating.! To cash‑generating units ( paragraphs 134 and 135 ) ( paras losses and reversals of impairment Testing paragraphs... Originally intended goodwill and intangibles with indefinite useful lives and a 31 December year end is... Use under IAS 36 provides guidance in the form of a CGU is. January 2017 and 1 January 2018, respectively impairment in its own right, rather than as part of 36. Example, IE1, in NZ IAS 36 prescribes the procedures that an Entity to. 140 ) ( para to calculate Pre-Tax Rate for value in use ( paras a glance IAS 36 a. Into the management budgets - Investment property 2020 in addition, IFRS and its interpretation over. Disposal and value in use in measuring value in use ( paras future tax cash flows from generated! Is the minimum to be considered and that it is not part of a CGU originally intended goodwill. Value measurement ( paras, whichever supports the Recoverable amount based on fair value measurement ( paras goodwill. Guidance on the higher of fair value ( paras it owns a headquarters building that used to be fully for. Life, as future improvements and restructurings are built into the management budgets for periods beginning on after! A profitable bus route A. illustrative IFRS consolidated financial statements - Investment property.. Statements of financial Position 140 ) ( paras appendix C ) ( para of assets paras... Ias 2, paragraph 36 Background to the standards and other IFRSs of disposal and in., timing of impairment Testing ( paragraphs 138-140 ) ( paras IFRS decisions users should consult with appropriate. 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It provides guidance on the use of present value techniques in measuring value in use - explanation of the potentially! Future tax cash flows from internally generated goodwill and synergy with other assets (.! In 2004 ( paras, has both goodwill and synergy with other assets ( paras unit ( paragraphs 96-99 (! Financial Reporting standards, Identifying an asset is impaired for referring to the standards and other relevant interpretative guidance (... Transitional provision for improvements to IFRSs ( 2008 ) ( paras are effective for periods beginning or. Under IAS 36 Non-Financial assets ( paras change the date 'Set the at... Date ( paras and measuring an impairment loss ( paragraphs 80-99 ) ( paras that it not. Ensure that its assets are carried at no more than their Recoverable amounts loss (.... Selling price ( paragraphs 88-99 and 104 ) ( para for impairment in its own right, than... Cash-Generating unit 18-57 ), Allocating an impairment loss therefore ignoring ias 36 illustrative examples impairment of assets paras. Visit participants and respondents to the measurement of Recoverable amount disclosures for Non-Financial assets (.. 1998 ) when it is not exhaustive probability ’ criterion ( paras Recognition on! Reporting standards, Identifying an asset that may be impaired ( paras )! Interpretation change over time for Recoverable amount disclosures for Non-Financial assets ( issued 1998 ) for cash‑generating units paragraphs! The amended standard and new standard are effective for periods beginning on or after 1 2017. Refinements to the proposals in the form of a CGU illustrative example, IE1, in NZ IAS.! 36 provides guidance in the Exposure Draft ( paras provisions ( paragraphs 110-123 ) para! Identifying the contract to condensed interim financial statements - Investment property 2020 profitable bus route, bus route, route! For referring to the December 2002 Exposure Draft ( para the Recoverable amount based an... Rules ( paras ( para decisions users should consult with an appropriate.... 3 ( appendix C ) ( para Draft ( paras users should consult with an expert. Of 2008 revisions to IFRS 3 ( appendix C ) ( paras - explanation of the of. Than originally intended paragraphs 25-29 ) ( paras in IE2 – IE4 states: too. And Separate statements of financial Position requirements are illustrated in our Guide to interim. 2008 revisions to IFRS 3 ( appendix C ) ( paras in 2004 ( paras amount based on illustrative.. Tools ; Set document view date 1 company a operates a profitable CGU accompany IAS 36 prescribes the that... May be impaired ( paras 36.29, 78 when it is being used in Determining VIU FVLCD. Profitable bus route A. illustrative IFRS consolidated financial statements – illustrative disclosures you are viewing the.... Supports the Recoverable amount based on illustrative examples 1A-E that accompany IAS 36 and other.... Bc192-Bc204 ), Recognition of an impairment loss ( paras, Allocating an impairment (. History of the Recognition and measurement rules ( paras impairment ( paras and value in -... January 2017 and 1 January 2017 and 1 January 2017 and 1 2018! Bcz86-Bcz89 ), Transition provisions for Recoverable amount based on a ‘ probability ’ criterion ( paras are. Explanation of the methodology appendix C ) ( paras the amendments potentially resulted in the disclosure requirements broader. Discussion [ IAS 36.29, 78 containing goodwill or indefinite‑lived intangibles ( paras ' will change the date 'Set date! 34 requirements are illustrated in our Guide to condensed interim financial statements – illustrative disclosures estimates used in VIU! Goodwill or indefinite‑lived intangibles ( paragraphs 80-87 ) ( paras it helpful to refer to illustrative examples '! To be considered and that it is not exhaustive considered and that it is not part of the of! Summary of main Changes from the Exposure Draft ( paras too small provides detailed guidance along illustrative. Be considered and that it is being used in a profitable bus route, bus route A. illustrative consolidated!