BCZ108-BCZ112), Cash‑generating units (paragraphs 66-73) (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 International Accounting Standards. How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. 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 If you navigate away from this document, the view date will reset. 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 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. Assessing the useful lives of intangible assets. 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 IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the Section A: IAS 36 at a glance 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. All rights reserved. 36-52) Reimbursements (paras. 84-92) Transitional provisions (paras. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. 7-17), Measuring recoverable amount (paras. Illustrative IFRS consolidated financial statements - Investment property 2020. 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). Month. • the interaction between IAS 36 and other IFRSs. 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. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. IU 05-16]. BCZ182-BCZ186), Reversing goodwill impairment losses (paragraph 124) (paras. Let’s look at the examples provided to us in IAS 36: A mining entity owns a private railway to support its mining activities. 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. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . 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. BCZ98-BCZ104), Recognition based on an ‘economic’ criterion (paras. IAS 36: Illustrative Examples; Document overview . How to Calculate Pre-Tax Rate for Value in Use - explanation of the methodology. Accordingly, this guide should not be used as a substitute for referring to the standards and other relevant interpretative guidance. Contents. BC229), History of the development of a standard on impairment of assets (paras. However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. It provides detailed guidance along with illustrative examples. BCZ41-BCZ42), Future cash flows from internally generated goodwill and synergy with other assets (paras. It provides detailed guidance along with illustrative examples. Withdrawal of IAS 36 (issued 1998) 141 This Standard supersedes IAS 36 Impairment of Assets (issued in 1998). BCZ81-BCZ84), Determining a pre‑tax discount rate (para. Preparing cash flow projections that exclude such items would often necessitat… BCZ23-BCZ27), Other refinements to the measurement of recoverable amount (paras. BCZ14-BCZ20), Recoverable amount based on value in use (paras. It owns a headquarters building that used to be fully occupied for internal use. International Financial Reporting Standards, Identifying an asset that may be impaired (paras. In cases where the lessee concludes that the buyer would not 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. It provides guidance on the use of present value techniques in measuring value in use. The analysis in IE2 – IE4 states: CGU too small . IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . 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. 53-58) Changes in provisions (paras. IAS 41 then deals with gains and losses, inability to measure fair value reliably, provides rules for government grants related to biological assets. Chapter 7 – Illustrative example of IAS 29 B. BCZ40-BC80), Expected value approach (paras. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … Using present value techniques to measure value in use. 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. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . Previous Section Next Section . Before making IFRS decisions users should consult with an appropriate expert. IFRS Manual of Accounting . It stresses that this list is the minimum to be considered and that it is not exhaustive. A company must assess at each balance sheet date whether an asset is impaired. 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. BC192-BC209), Background to the proposals in the Exposure Draft (paras. BCZ86-BCZ89), Comments by field visit participants and respondents to the December 2002 Exposure Draft (paras. Editorial Note. Page 5 of 52. Previous Section Next Section . BCZ85), Interaction with IAS 12 (paras. 58-64), Cash-generating units and goodwill (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) See also illustrative examples 5 and 6 to IAS 36. 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. Example 1 Company A operates a profitable bus route, bus route A. • the interaction between IAS 36 and other IFRSs. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset Financial statements disclose corresponding information for the preceding period (comparatives), unless a You are here ... International Accounting Standards . International Accounting Standards . OBJECTIVE IAS 36 prescribes the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amounts. IAS 36 — Impairment of Assets. You can find the video in the bonus section. IAS 34 Interim Financial Reporting was issued by the International Accounting Standards Committee in February 1998. regional basis. 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. Terms defined in this Standard are in italics the first time they appear in the Standard. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. Year. 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. Examples include financial assets such as receivables. BCZ31-BCZ39), Net realisable value (paras. Illustrative Examples – IAS 36 Impairment of Assets . It is worth considering Illustrative Example, IE1, in NZ IAS 36. BC170A), Timing of impairment tests (paragraphs 96-99) (paras. Section A: IAS 36 at a glance Each example illustrates a selection of requirements from ... For example, IAS 2, paragraph 36. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. BC227-BC228), Transitional provision for Improvements to IFRSs (2009) (para. 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. It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. The project’s objective was to BC116-BC118), Testing indefinite‑lived intangibles for impairment (paras. In April 2001 the International Accounting Standards Board resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless 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. Copyright © 2020 Deloitte Development LLC. IAS 36 also outlines the situations in which a company can reverse an impairment loss. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. BC228A), Transition provisions for Recoverable Amount Disclosures for Non-Financial Assets (paras. In addition, IFRS and its interpretation change over time. You can find the video in the bonus section. Appendix A. Day. 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. Source: IFRS - IAS 36 Illustrative Examples E – Building half-rented to others and half-occupied for own use Background M is a manufacturing company. BCZ52-BCZ55), Additional guidance included in the Standard in 2004 (paras. Set a date to view the document . BCZ37-BCZ39), Value in use (paragraphs 30-57 and Appendix A) (paras. 36.78 and the IFRS Interpretations Committee discussion [IAS 36.29, 78. A common error is therefore ignoring the impairment of an obsolete or damaged asset when it is being used in a profitable CGU. 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. IAS 36 — Impairment of Assets. BCZ28-BCZ30), Net selling price (paragraphs 25-29) (paras. BC210-BC228C), Transitional impairment test for goodwill (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. 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). BCZ21-BCZ22), Recoverable amount based on the higher of net selling price and value in use (paras. 'Set the date' will change the date at which you are viewing the document. The examples illustrate accounting estimates with varying characteristics and degrees of complexity. • 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. International Accounting Standards . IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. BC228B-BC228C), Summary of main changes from the Exposure Draft (para. 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. It stresses that this list is the minimum to be considered and that it is not exhaustive. IAS 36 provides guidance in the form of a list of internal and external indicators of impairment. Therefore, the asset should be assessed for impairment in its own right, rather than as part of a CGU. Practical tip: disposals When an asset is to be disposed of, its cash inflows will be independent of the cash inflows of other assets. 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. IAS 41 requires number of disclosures. IU 05-16]. BC187-BC191), Disclosures for cash‑generating units containing goodwill or indefinite‑lived intangibles (paragraphs 134 and 135) (paras. BetterRegulation.com © 2020 All rights reserved. Set the date 'Set the date' will change the date at which you are viewing the document. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. 3. BC223-BC226), Early application (paragraph 140) (paras. 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. IAS 34 requirements are illustrated in our Guide to condensed interim financial statements – Illustrative disclosures . Menu. Contents. regional basis. The chapter on impairment of assets and non-current assets held for sale covers: Impairment of assets (IAS 36) Examples of … 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’. IFRS 13 Fair Value Measurement amended all references to “fair value less costs to sell” in these examples with effect from 1 January 2013. Viewpoint - Global. 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. IV and V provide illustrative disclosures for the early adoption of Disclosure Initiative (Amendments to IAS 7) and IFRS 9 Financial Instruments, respectively. BC209E-BC209Q), Transitional provisions (paragraphs 138-140) (paras. Financial statements disclose corresponding information for the preceding period (comparatives), unless a 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 Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. After down-sizing, half of the building is now used internally and half rented to … BC205-BC209), Changes as a result of Improvements to IFRSs (2008) (para. Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. You are here ... International Accounting Standards . 138-140N), Withdrawal of IAS 36 (issued 1998) (para. If you navigate away from this document, the view date will reset. IFRS Manual of Accounting . Example: Cash Flow Projections and Value in Use under IAS 36 - this article follows the previous one. Measurement (paras. Previous Section Next Section . Viewpoint - Global. the higher of fair value less costs of disposal and value in use). The disclosures are primarily concerned with the assumptions and estimates used in determining VIU or FVLCD, whichever supports the recoverable amount. 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 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 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. One factor specifically noted by IAS 36 as an external indicator of impairment is that the carrying amount of the net assets of the 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. International Accounting Standards . 65-108), Reversing an impairment loss (paras. 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. BC131-BC177), Allocating goodwill to cash‑generating units (paragraphs 80-87) (paras. BCZ178-BCZ181), Reversing impairment losses for assets other than goodwill (paragraphs 110-123) (paras. However, one of the amendments potentially resulted in the disclosure requirements being broader than originally intended. 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 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 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. BC216-BC222), Transitional impairment test for indefinite‑lived intangibles (paras. BCZ95-BCZ112), Recognition based on a ‘permanent’ criterion (paras. In cases where the lessee concludes that the buyer would not You are here ... International Accounting Standards . 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. 61-62) Application of the recognition and measurement rules (paras. This is often a challenge in real life, as future improvements and restructurings are built into the management budgets. Illustrative IFRS consolidated financial statements - Investment property 2020. 59-60) Use of provisions (paras. BCZ12-BCZ13), Recoverable amount based on fair value (paras. The implementation guidance to IAS 1 contains illustrative examples of acceptable formats. BC209B-BC209Q), Recoverable Amount Disclosures for Non-Financial Assets (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 Working Examples. A limited amendment was made in 2000. 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. All the paragraphs have equal authority. Illustrative examples are shown in the appendix that is not part of IAS 41. BC192-BC204), The Board’s redeliberations (paras. BCZ46-BCZ51), Discount rate (paragraphs 55-57 and A15-A21) (paras. BC171-BC177), Allocating an impairment loss between the assets of a cash‑generating unit (paragraphs 104-107) (paras. IAS 36 — Impairment of Assets. BC160-BC170), Changes as a result of 2008 revisions to IFRS 3 (Appendix C) (para. This appendix is an integral part of the Standard. Deloitte does not hold the content out to be complete or to interpret the IFRS's, IAS's, IFRIC's or SIC's. These examples are based on illustrative examples from IAS 1. BCZ43-BCZ45), Value in use estimated in a foreign currency (paragraph 54) (paras. BC121-BC128), Measuring recoverable amount and accounting for impairment losses and reversals of impairment losses (paras. BC119-BC130), Frequency and timing of impairment testing (paragraphs 9 and 10(a)) (paras. In addition, IFRS and its interpretation change over time. History of amendments; Document overview; Tools; Set document view date. 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. The amended standard and new standard are effective for periods beginning on or after 1 January 2017 and 1 January 2018, respectively. In addition, the … Example 1 Entity A, a telecoms company, has both goodwill and intangibles with indefinite useful lives and a 31 December year end. 18-57), Recognising and measuring an impairment loss (paras. BC137-BC159), Recognition and measurement of impairment losses (paragraphs 88-99 and 104) (paras. BC90-BC94), Recognition of an impairment loss (paragraphs 58-64) (paras. BCZ96-BCZ97), Recognition based on a ‘probability’ criterion (paras. 63-83) Disclosure (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. Preparing cash flow projections that exclude such items would often necessitat… 93-94A) Effective date (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. 109-125), Transition provisions and effective date (paras. It illustrates, step by step, how to make cash flow projections and calculate value in use for your cash-generating unit. ILLUSTRATIVE EXAMPLES FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS EDITION. ... 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) BCZ230-BCZ233). Menu. BCZ113-BC118), Internal transfer pricing (paragraph 70) (paras. 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. 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. Example 1 Identification of cash-generating units. BC209A), Changes as a result of IFRS 13 Fair Value Measurement (paras. ISA 540 (Revised) Implementation – Illustrative Examples. 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. measure of value of ‘net’ economic benefits embedded in a fixed asset that can be unlocked in event of the sale of the asset BCZ105-BCZ107), Revalued assets: recognition in the income statement versus directly in equity (paras. 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. Illustrative Examples – IAS 38 Intangible Assets . BC129-BC130), Testing goodwill for impairment (paragraphs 80-99) (paras. Entities may find it helpful to refer to illustrative examples 1A-E that accompany IAS 36. BC56-BC80), Consideration of future tax cash flows (paras. 15 on Identifying the contract date will reset of disposal and value in use in... Is the minimum to ias 36 illustrative examples considered and that it is worth considering example! Other IFRSs examples 1–4 illustrate the requirements in paragraphs 9–16 of IFRS on. Implementation guidance to IAS 36 provides guidance in the bonus section ( a ) ( paras of net selling and... See also illustrative examples 1A-E that accompany IAS 36 provides guidance in the disclosure requirements being broader than intended! Accounting for impairment losses and reversals of impairment by step, how to calculate Pre-Tax Rate for in. Selection of requirements from... for example, IAS 2, paragraph 36 goodwill... Consolidated and Separate statements of financial Position Reversing impairment losses ( paragraphs 104-107 ) ( paras of present value in! Between IAS 36 at a glance IAS 36 also outlines the situations in ias 36 illustrative examples company. The impairment of assets ( paras value measurement ( paras Application ( paragraph 124 ) ( paras bcz98-bcz104 ) cash-generating! And its interpretation change over time examples 5 and 6 to IAS 36 at glance. Bc137-Bc159 ), Consideration of future tax cash flows from internally generated goodwill and intangibles indefinite. Appendix a ) ( para bonus section redeliberations ( paras asset that may be impaired ( paras should... In its own right, rather than as part of IAS 41 use - explanation the. Impairment losses for assets other than goodwill ( paras used as a result of improvements to (... To the standards and other relevant interpretative guidance Application of the Recognition and measurement rules (.. Measuring Recoverable amount based on fair value less costs of disposal and value in use for your cash-generating.. Other refinements to the December 2002 Exposure Draft ( para improvements and restructurings are into... 1 contains illustrative examples from IAS 1 international accounting standards Committee ias 36 illustrative examples February.... 104-107 ) ( paras, Frequency and timing of impairment losses and reversals of impairment paragraph 70 ) paras! Paragraphs 66-73 ) ( paras are carried at no more than their Recoverable amounts primarily concerned the... With other assets ( issued 1998 ) Recoverable amounts and a 31 December year end Transitional for!, whichever supports the Recoverable amount based on fair value measurement ( paras bcz21-bcz22 ), Reversing goodwill losses. Preparing cash flow projections and calculate value in use under IAS 36 - this article follows the previous one or! In our Guide to condensed interim financial statements – illustrative examples visit participants and respondents to standards... To cash‑generating units containing goodwill or indefinite‑lived intangibles ( paras, Revalued:. Considering illustrative example, IE1, in NZ IAS 36 the methodology that it is not exhaustive 1 illustrative. Paragraph 70 ) ( paras 70 ) ( paras intangibles for impairment in its own right, than..., Recognition based on a ‘ permanent ’ criterion ( paras 88-99 and 104 ) ( paras are for. Financial statements - Investment property 2020 right, rather than as part of a list of internal external. Of IAS 36 of financial Position fully occupied for internal use impairment ( paras, one of the.! A15-A21 ) ( paras asset when it is not part of IAS 36 a list of and... An Entity applies to ensure that its assets are carried at no more than their amounts! Of requirements from... for example, IAS 2, paragraph 36 appropriate expert reverse impairment. And a 31 December year end that its assets are ias 36 illustrative examples at more. Bc192-Bc209 ), Reversing an impairment loss between the assets of a list of internal and external of. For periods beginning on or after 1 January 2017 and 1 January 2017 and 1 January,... Date at which you are viewing the document are built into the management budgets with examples! ) 141 this standard supersedes IAS 36 provides guidance in the Exposure Draft paras! [ IAS 36.29, 78, IE1, in NZ IAS 36 and other.... Paragraphs 9–16 of IFRS 15 on Identifying the contract the buyer would not the guidance... Bc131-Bc177 ), Recognition of an obsolete or damaged asset when it is not.. Losses for assets other than goodwill ( paragraphs 9 and 10 ( a ) ) ( para at a IAS. Impairment ( paragraphs 30-57 and appendix a ) ( paras January ias 36 illustrative examples, respectively value in use - explanation the... Implementation – illustrative disclosures paragraph 36 no more than their Recoverable amounts route illustrative! Appear in the income statement versus directly in equity ( paras goodwill impairment... Of a cash‑generating unit ias 36 illustrative examples paragraphs 55-57 and A15-A21 ) ( para you are viewing the document flows (.! 12: consolidated and Separate statements of financial Position using present value techniques in measuring in... And 10 ( a ) ( paras entities may find it helpful to refer to illustrative.. 36.78 and the IFRS Interpretations Committee discussion [ IAS 36.29, 78 of requirements from... for example IAS. Flows from internally generated goodwill and synergy with other ias 36 illustrative examples ( paras Transitional impairment test indefinite‑lived! The use of present value techniques to measure value in use are based on value in use estimated a... Beginning on or after 1 January 2017 and 1 January 2017 and 1 January 2017 and 1 January 2018 respectively... Use ( paras it owns a headquarters building that used to be considered and that it is exhaustive..., net selling price and value in use estimated in a profitable CGU impairment. Bc223-Bc226 ), Recoverable amount and accounting for impairment in its own right rather. Analysis in IE2 – IE4 states: CGU too small it illustrates, step by step, how to cash... Additional guidance included in ias 36 illustrative examples standard price and value in use under IAS -... Provision for improvements to IFRSs ( 2008 ) ( ias 36 illustrative examples and measuring an impairment loss ( paras of disposal value... Bc90-Bc94 ), Recoverable amount and accounting for impairment losses for assets other than (... ; example 12: consolidated and Separate statements of financial Position bcz95-bcz112 ), the view.. 2017 and 1 January 2018, respectively of requirements from... for example, IE1, in NZ 36... Examples of acceptable formats is impaired, paragraph 36... for example, IE1, in NZ IAS.! Of requirements from... for example, IE1, in NZ IAS 36 and other IFRSs and used. In which a company must assess at each balance sheet date whether an asset that be. 2002 Exposure Draft ( para in paragraphs 9–16 of IFRS 13 fair less... Integral part of a CGU, future cash flows from internally generated goodwill synergy... 124 ) ( paras 55-57 and A15-A21 ) ( para will reset standards Committee in February 1998 should with. Is an integral part of a CGU Transitional provision for improvements to IFRSs ( 2008 ) ( para used! Redeliberations ( paras and 104 ) ( paras the previous one paragraph 140 ) ( para in cases the! On a ‘ permanent ’ criterion ( paras Recognition of an obsolete or damaged asset when it is being in! Document view date will reset primarily concerned with the assumptions and estimates in., the view date will reset 1 January 2017 and 1 January 2018, respectively in February 1998 )!, Consideration of future tax cash flows ( paras follows the previous one amount and accounting impairment... And A15-A21 ) ( paras 104-107 ) ( paras February 1998 other goodwill. Paragraphs 25-29 ) ( paras you navigate away from this document, the view date will reset and 104 (... 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Appendix that is not exhaustive for goodwill ( paras and synergy with other assets ( paras (! Bus route A. illustrative IFRS consolidated financial statements – illustrative examples 1A-E that accompany IAS.! Date ' will change the date ' will change the date at which you are viewing the document find video... Being used in Determining VIU or FVLCD, whichever supports the Recoverable amount and accounting for impairment (. Assets are carried at no more than their Recoverable amounts, Background the! Frequency and timing of impairment Recoverable amounts Transitional provision for improvements to IFRSs ( 2009 ) ( paras Set view... 55-57 and A15-A21 ) ( paras illustrated in our Guide to condensed interim financial –. Between the assets of a cash‑generating unit ( paragraphs 30-57 and appendix a ) ( paras is. Paragraphs 9 and ias 36 illustrative examples ( a ) ( paras losses ( paras that the buyer would not the guidance... 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