CA Final Download the best Free CA FINAL android app for cracking your exam! Download Now
They are the best ca final faculties in India. They have produced many toppers & rank holders. Their video classes are available only here -
CHECK VIDEO CLASSES HERE

Educational Material on Ind AS 36 Impairment of Assets

Educational Material on Ind AS 36 Impairment of Assets

Ind AS 36 Impairment of Assets : 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 exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an asset, and the test may be conducted for a ‘cash-generating unit’ where an asset does not generate cash inflows that are largely independent of those from other assets. IAS 36 was reissued in March 2004 and applies to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004, and for all other assets prospectively from the beginning of the first annual period beginning on or after 31 March 2004.

History of Ind AS 36

DateDevelopmentComments
May 1997Exposure Draft E55 Impairment of Assets 
June 1998IAS 36 Impairment of AssetsOperative for financial statements covering periods beginning on or after 1 July 1999
31 March 2004IAS 36 Impairment of Assets revisedApplies to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004, and for all other assets prospectively from the beginning of the first annual period beginning on or after 31 March 2004
22 May 2008Amended by Annual Improvements to IFRSs 2007 (disclosure of estimates used to determine a recoverable amount)Effective for annual periods beginning on or after 1 January 2009
16 April 2009Amended by Annual Improvements to IFRSs 2009 (units of accounting for goodwill impairment testing using segments under IFRS 8 before aggregation)Effective for annual periods beginning on or after 1 January 2010
29 May 2013Amended by Recoverable Amount Disclosures for Non-Financial Assets (clarification of disclosures required)Effective for annual periods beginning on or after 1 January 2014

Educational Material on Ind AS 36 Impairment of Assets

Ind AS 36 Impairment of Assets : An impaired asset is a company’s asset that has a market price less than the value listed on the company’s balance sheet. Accounts that are likely to be written down are the company’s goodwill, accounts receivable and long-term assets because the carrying value has a longer span of time for impairment. Upon adjusting an impaired asset’s carrying value, the loss is recognised on the company’s income statement.

Key definitions of Ind AS 36

Impairment loss: the amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount

Carrying amount: the amount at which an asset is recognised in the balance sheet after deducting accumulated depreciation and accumulated impairment losses

Scope Applies to all assets (including current assets) other than:

  • Inventories (IND AS 2 – Inventories)
  • Assets arising from construction contracts (IND AS 11– Construction Contracts)
  • Deferred tax assets (IND AS 12-Income Taxes)
  • Assets arising from employee benefits (IND AS 19-Employee Benefits)
  • Financial Assets that are within the scope of IND AS 39 – Financial Instruments
  • Biological assets (IND AS 41- Agriculture)
  • Deferred acquisition costs, and intangible assets arising from Insurance contract (IND AS 104)
  • Non – Current asset (or disposal groups) classified as held for sale in accordance with IND AS 105

Objectives of Ind AS 36

The objective of IAS 36 Impairment of assets is to make sure that entity’s assets are carried at no more than their recoverable amount.

The Standard also defines when an asset is impaired, how to recognize an impairment loss, when an entity should reverse this loss and what information related to impairment should be disclosed in the financial statements.

The following scheme shows to what assets IAS 36 does and does not apply:

IAS36Scope
Basically, when you’re dealing with property, plant and equipment in line with IAS 16 or intangible assets in line with IAS 38, then you need to look to IAS 36, too.

impairment of assets

An asset is impaired when its carrying amount exceeds its recoverable amount.

IAS36Impairment

Relevant link to download the Educational Material: 

Educational Material on Ind AS 36 Impairment of Assets 

Ind AS Related all Posts :

 

Educational Material on Ind AS 36 Impairment of Assets

CAKART provides India’s top CA Final faculty video classes – online Classes – at very cost effective rates. Get CA Final Video classes from CAKART.in to do a great preparation for your exam.

Watch CA Final sample video lectures here
Watch CA Final best Author books   here
Watch CA Final free downloads  here
For any questions chat with us by clicking on the chat button below or give a missed call at 9980100288

Leave a comment

Your email address will not be published. Required fields are marked *