IAS

. -
- -
-
36
-
-

IMPAIRMENT
- -
-
 IAS 36 IMPAIRMENT
→ Difference between Depreciation 9 Impairment
→
Depreciation is
systematic Allocation of cost of an asset over its useful life
→ Impairment is a sudden fall of Value of an Asset

→ We never do impairment
directly
① First we
get hint of impairment
⑦ Then we do impairment test

③ Then we
get result (Yes or
)
No

Hintsoflmpairment
Internal Hints External Hints
#
-

a) Damage of an Asset
a) Changes in Technology
.

of asset
b) Change in use
b) Changes in legal 9 Economical Environment
c) Planning to sell Asset Increase Interest Rates
an
c) in

d) Carrying Value of Net Assets is

greater than

Market capitalization
#
¥ cost 100,000
:

÷
' Jan 08 depolo, ooo 31 Dec X8.

life 10
yrs
90,000
:

. .
.NBV.= .

→
.

6500
Impairing
,gpt/ PGL 201000 .

R.tt#eioverable Amount
Machine 20,000 .
.
Impairment?¥T is
Higher of
-

I \' * .

Fair value
value in
less cost to
sell ! use

ftp.T#.@2?/iPresentValueofFuturecashflowF
Present Value
=I6ToI¥
.
.

$6 '

I
cash flows Dis factor

IDEA
-

" toooo o.to IT

II;
.

toooo -

opt

unto -

o.es , THE
Kitty
.

.
Q cost -
.
20,000
=
I
1JanX6 dep=4dOO Deco dlp_- 4000 Dec X7 .
.

life Eyres -
-

NBV = 12000 -

F V - -
CTS =
10,000W
RA =
I
Impairment 2000
. .
.
-
-

Expectedfuturecashflowsat3lstD = .

Yrl 3000

Yr 2 2000

Yr 3 6000
D. f 101
-
- .

Required : Amount
of Impairment if any at 31 Dec X7 ?

R.A-to.NO
- -
10,0007 8¥88 .

Fs r
,
 / 0.826/1653
cashflowsDFIO.tl#
" 3000 0.909 2727 .

!!
Y 2000

6000 .
0751 4508
-8888
=
.

¥mY:ErE:;inshmdf÷gm:tqthanRewaa sofPX.co .

$
Assets tooth
toooo IIE with
.

a. pfhare .SE#iEquity..7oinQ
marketeers
"
+

IY÷e% .
 Difference b/w

µ
Revaluation
-
Impairment
-

choice )
→ Its a
option >

Ttseomfstgneouenuyouaee using
→ Its an Assumed Loss loss
Its
.

→ a
genuine
.

-
-

foreg -
-
-

R #
.
⇐
120 .

→
-

←
.

-o
-

vi
-

s
- -
-

NBV
C. IS (5) 120
-
I

cost model ⇐ Tow . FACTS .

Revaluation PELIO
Model 4790 ¥410 .
cashgeneratingum.TL
↳ smallest
group of assets that
generates Independent
cash
flows .

eg of split unit in classroom

classroom is C G U the
→ Now this a or
maybe
.
-

whole institute is a C G U
. - .

!!
" " " " "
t
" "

"

green
.

" .

b§
.
. .
.
.

pink
blue
 Q camtcdieoidiu RA

:÷: : /¥ ¥
.
, -
-

goodwill 5000 .

( 5000 ) ie

tis:*. :# :
Van . -
-
r

5000
( Joo ) . 4500 '

Cash 2000
20002
- . .

-42,000
#
33000
-

R' A of Van
'

C. V of C. G. U 42000 y = 4500
-

Recoveorfabte.gl?unount( 33000)
-

- Plant 11×3500=-1167
-

r 30,000
Total Impairment 9000 :
2333
( 500J I Building @hDx35oyo.e
.

Van
:
.

goodwill G 30,00
' .

.
.

'

Remaining Impairment -3500 .

.
 stepsofttllocatiouofImpainmeutinc.cn#
① Obvious Impairment

2,0g Remaining Impairment off

Goodwill full written

to be Apportioned Assets Prorata Basis

on
Remaining on

Costnllodd
QI
.

C. G. U
+
( subsidiary ) F .

R.A Building -2500×600=3750

) (37%0)/4250
C G U Impairment
:
-
-

4am
= =
.
-

goodwill 3000 130007

-

""

-14%0%9×6
" ""t " " ⇐
"

25000
building . - - -

Plant .
. - - -
-

15000 ( 2250 ) .

12750 . C V of C. G U
-
- . . -
r -
57000

Patents r . . -
-
10000 -

10,000 . Rec Amount of C G U

.
- -

(480-00)
Net current assets 4000 Total Impairment 9000
40dg
.
- .

C. 4 -57000 at Goodwill (3000 )

48-000
. . . .

- Remaining Impairment #
FV of Patents 12000
-

r
. - - n
i

* Netcnrrat assets are

already stated at
their Fair Value .
 Cost Model
I

(1) (2)

:/ ifeng.fi .fi
C.cn#1mpairmentImpaivment-
goodwill 4000 ( 4000 ) - -

is::i. :O:O :-# :*:3 :÷:c:

( 2008 13000 13000
'

Patent 15000
'

cash 5000.2 -

Sooo
.
50000 .

Coy -14,000
¥
- - -
.

C. V of C. G. U -
- - -

74000

R.A of CG U -
.
-

( 55000)
Plant :
-25000×8000=4444
45000
.

Total Impairment 19000

Plant 15000 ) Building -20,000×800=3556
:

45000
Patent ( 2000 )
Goodwill 140¥
8000
Remaining Impairment# .
 The blast destroyed
Reason of Impairment was Blest .
one
of the Plant
with
carrying Value of $5000 ,
to the point of No Use .

F V of Patent
- = 13000

Req Impairment Apportionment

.

3 Assets on which Impairment Testing at least

Annually must

1) Purchase of Goodwill ( Business Combination) .

2) Intangible Assets .
with Indefinite life
3) Intangible Assets .
not yet Available for Use .

not
T
Amortized .

.
 Cait
5180
c.ygc.hu
.

. -
-
.

tooo
can
R.Afc.hu ! ! .8?
Total Inmpairm
.

Goos
- =
-

gw
-
-
÷
- .

. .

-
-

Reneging 48£
" " -
.
-
. .

c.a.ae
.

eeo.is/E. ?
. .

God
-

Fiat
too .
.

Baldy
- -
-
Iso
2300
.

( 219.4)
InoffertangiNetAssets.LI
bles 8D .
.

- 430 .

C.
llgcau . 5180
 260.6
9¥ 480€
Plant
.

1750
219.4
Intangible .rs#ox48o
⇐

689,40
.
 -65N
R.A
.

T
= .

t.ve .

bsoo
. .

3400 .

-
-

1454553111724,545 !
-
- -
-

stood -

-
-
I 30,00
-

. -
-

-3rad 50,00=45,455
-

CHI zoo ;ooox

RAfc.h.us/2oo,oag159001
PPEEi-z ,ao-.TotdPatent
ImpairnafIogohT
✓

2oihoo-xs.no
dessgw Impair
-
.

-
.

220,000
50,00
Remaining
.
-
 -

sops
X
X - .
18g
V

X 14 .

I
-

r .

-
.

Coste
-

-
ee .
.
- . .
.

. .
.
.

yer
-5
r
-
-
r -

I -
- r -
n

. . . -
- ri . - - r

ETAT
- - r
' ' i -

factor .
 Gstrloomhh
Aadep .

Pug Annuities -
.

Annuity#Annuity Factor
Leroy loiooxhfamxsyurroiooo
3o.tasepp.yefq.sk#-85ooX3o79X9
.

lifestyle .
¥5
f- 2044 .

NBK 50,000 .
.
-

RA1 -
32215--32,215 .

Rtthipmg -1,77852 Impairment ⇐

.

32,215
 - -

→ Ft
-
CTS .

-
.
→
.

;!i÷÷÷÷
214600 And .

NBV-24800
.
.

aprxs defining
' son .

.
X4
.

.
 NBV 217ohm

RoAs2k6oo@
Impair
- 2400
= .
 = - - i

"

- = .

I
- -

F
. - . .
. -
.

i
- -
n

i
ogddefsdoing -

T# Replacement loyr
'

=.
- -

- - - .
Trs .

- -

-
- - -

= .

-45N
def
6*9=8%4 def-4ooo.iq ⑧
.

:* .

IFFY .
3142£ 1FYX4 .

He
M¥81000
.

' X4 .

nefq±8lqfµ
-
- - r
r - -
-
- - - i

= . - - =
.

⇐
-

9h01am
- - - -
.

✓ w .

- X

✓ .
. -
- - -

✓
×
 NBV . -
60750 .
RA 4300 - .

RA ¥ X

6.
.
.
.

Impairments .
ITE t
'
.

=
-
-
- -

-
- - -

*
-
i - -
i
,

-
X

I
.
.

X
-
.

- .
r

✓ = .
-
-

'

O .
←

- - -
-
- -
-

-
-
. - -

✓
-

F- i

-
-

262,56 -

Imp .CH Input .

 500 5N 1625) 4375
Building
- .

Plant 335135) 300 .

(37-5) 26251
Co
85
I
-

IN'FCurnnt Assets
-

II
- -
-
'

: -
250 .
250
-
E
congeal
-

. . .

f. 951 500×100--62-5
Again Building -80-0
-
.

Total Impair .
220 .

Less plant -

351 ( Plate 301×100=375

800
g. w -
-

¥ .

Remaining Impairment