Staying Current with Accounting for the Impairment of Assets in IFRS

This session outlines a principles-based set of guidelines to account for the impairment of assets in IFRS. The basic principle to apply from this standard is that assets are to be carried at no more than their recoverable amount. When evidence indicates that an asset might be carried on the balance sheet at more than its recoverable amount, then it carrying amount might exceed the amount to be recovered (recoverable amount) through either the use of the asset, or through the sale of the asset. This standard requires the entity to act on any reliable evidence by performing an impairment test to confirm whether the carrying amount should be changed, and to what extent. If yes, the asset is then described as impaired, and the entity must recognize an impairment loss and revalue the asset. The session specifies how to account for this situation using easy-to-follow guidelines that will ensure that you understand how to fully comply with this standard. Course Key Concepts: IFRS, Impairment, Recoverable amount, Revaluation.