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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 36
Impairment of Assets
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 36 |
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IAS 36 Impairment
of Assets Issued in
June 1998 Revised in
March 2004 Recent amendment:
by IFRS 3 revised in January 2008 |
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When is an
asset impaired? --> carrying amount > recoverable amount |
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Recoverable amount is the higher of (1) or (2) (1) fair value less costs to sell (2) value in use |
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If
carrying amount > both of (1) and (2) --> an asset is impaired If
carrying amount > (1) > (2) --> an asset is impaired If
carrying amount > (2) > (1) --> an asset is impaired |
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If either
of (1) or (2) > carrying amount --> an asset is not impaired If (1) >
carrying amount --> an asset is not impaired If (2) >
carrying amount --> an asset is not impaired |
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Impairment
loss = carrying amount - recoverable amount For
non-revalued assets --> impairment loss is recognized in profit or loss For
revalued assets --> impairment loss is recognized in other comprehensive income |
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Carrying
amount is reduced to recoverable amount. --> recoverable amount becomes new carrying amount --> depreciation will be adjusted based on new carrying amount |
