Fixed asset impairment guidelines

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The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired. The entity must reduce the carrying amount of the asset to its INTRODUCTION. IAS 36 Impairment of Assets sets out requirements for impairment which cover a range of assets (and groups of assets, . purchase of the acquiree's share capital), goodwill is only recognised and presented in the acquirer's consolidated financial .. period, if, and only if, all of the following criteria are met:. Our new Property, plant, equipment and other assets guide answers your questions about the accounting for PPE and certain other related assets. Topics discussed in the guide include: Capitalized costs including capitalized interest; Maintenance; AROs; Depreciation and amortization; Asset impairment; Asset disposal Watch foreign currency cash flows. Foreign currency cash flows are common and are required to be dealt with in a specific way by IAS 36. Entity F is determining future cash flows for an impairment test of a CGU containing fixed assets, in accordance with IAS 36. How are future exchange rate movements taken into account, GUIDELINES TO DETERMINE ASSET IMPAIRMENT AND REPORTING OF INSURANCE RECOVERIES. ASSET IMPAIRMENT. STEP 1: Identify “Potential” Impairments to Capital Assets The first step in the process is to identify “potential” impairments to capital assets. Identifying “potential” impairments to capital assets may 16 Dec 2017 Financial reporting developments. A comprehensive guide. Impairment or disposal of long- lived assets. Revised December 2017 ASC 360-10, Impairment and Disposal of Long-Lived Assets (ASC 360), provides accounting guidance for impairments of assets that are Capital leases of lessees. 2. IAS 36 requires the use of pre-tax cash flows and pre-tax discount rates in the impairment test. In practice, primarily because of the widespread use of the Capital Asset Pricing Model — post-tax costs of equity are generally determined and used in the entity's computations of the discount rate. Discounting post-tax cash flows. Differences between This Statement, Statement 121, and Opinion 30 and Additional Implementation Guidance. Long-Lived Assets to Be Held and Used. This Statement retains the requirements of Statement 121 to (a) recognize an impairment loss only if the carrying amount of a long-lived asset is not recoverable from its IAS 36 Impairment of Assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. the higher of fair value less costs of disposal and value in use). With the . the entity's own weighted average cost of capital; the entity's incremental borrowing rate; other market borrowing rates. lived assets in U.S. GAAP is included in FASB ASC Topic 360,. Property, Plant, and Equipment. In IFRS, the guidance related to accounting for the impairment of long-lived assets is included in International Accounting Standard (IAS) 36,. Impairment of Assets. The guidance for when to test long-lived assets for impairment is