Nnias 36 impairment of assets pdf merger

The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. The allocated impairment loss to each asset will be treated as impairment loss on individual asset and will be recognizeas per the requirements of this standard. Impairment of assets grant thornton international ltd. In1 hong kong accounting standard 36 impairment of assets hkas 36 replaces ssap 31 impairment of assets issued in 2001, and should be applied. Such business combinations are accounted for using the acquisition method, which generally requires assets acquired and liabilities assumed to be measured at. Ias 36 seeks to ensure that an entitys assets are not carried at more than their recoverable amount i.

Net identifiable assets nia consists of the assets acquired from a company whose value can be measured at a given point of time and its future. The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. The recoverable amount is the higher of an assets or cash generating unit fair value less costs of disposal and its value in use. 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. Ias 36 impairment of assets pwcs inform uk accounting topic. Impairment accounting the basics of ias 36 impairment of assets. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Ias 36 impairment of assets prescribes the procedures to apply to ensure assets are carried at no more than their recoverable amount. Impairment of property, plant and equipment and intangible assets. The accounting standard ias 36 ensures that the assets of an entity are carried at no more than their recoverable amount and sets out the criteria for defining. Identifying the cashgenerating unit to which an asset belongs.

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. Ias 36 impairment of assets ifrs standards tracker icaew. The recoverable amount is defined as the higher of the fair value less costs. Goodwill impairment arises when there is deterioration in the capabilities of acquired assets to generate cash flows, and the fair value of the goodwill dips. Impairment accounting the basics of ias 36 impairment of. If an assets carrying value exceeds the amount that could be received through use or selling the asset, then the asset is impaired and the standard requires a company to make provision for the impairment loss. The asset or cgu is impaired if its carrying amount exceeds its recoverable amount.