International GAAP 2020

Chapter 20Impairment of fixed assets and goodwill

• 1 INTRODUCTION

• 1.1 The theory behind the impairment review
• 1.2 Key features of the impairment review
• 1.3 Scope

• 2 WHEN AN IMPAIRMENT TEST IS REQUIRED

• 2.1 Indicators of impairment
  • 2.1.1 Market capitalisation
  • 2.1.2 (Future) performance
  • 2.1.3 Individual assets or part of CGU?
  • 2.1.4 Interest rates

• 3 DIVIDING THE ENTITY INTO CASH-GENERATING UNITS (CGUS)
  • 3.1 CGUs and intangible assets
    • 3.1.1 Intangible assets as corporate assets
  • 3.2 Active markets and identifying CGUs
• 4 IDENTIFYING THE CARRYING AMOUNT OF CGU ASSETS
  • 4.1 Consistency and the impairment test
    • 4.1.1 Environmental provisions and similar provisions and liabilities
    • 4.1.2 Lease liabilities under IFRS 16
    • 4.1.3 Trade debtors and creditors
    • 4.1.4 Pensions
    • 4.1.5 Cash flow hedges
  • 4.2 Corporate assets
    • 4.2.1 Leased corporate assets
• 5 RECOVERABLE AMOUNT
  • 5.1 Impairment of assets held for sale
• 6 FAIR VALUE LESS COSTS OF DISPOSAL
  • 6.1 Estimating FVLCD
    • 6.1.1 FVLCD and the unit of account
    • 6.1.2 Depreciated replacement cost or current replacement cost as FVLCD
• 7 DETERMINING VALUE IN USE (VIU)
  • 7.1 Estimating the future pre-tax cash flows of the CGU under review
    • 7.1.1 Budgets and cash flows
    • 7.1.2 Cash inflows and outflows from improvements and enhancements
    • 7.1.3 Restructuring
    • 7.1.4 Terminal values
    • 7.1.5 Foreign currency cash flows
    • 7.1.6 Internal transfer pricing
    • 7.1.7 Overheads and share-based payments
    • 7.1.8 Lease payments
      • 7.1.8.A Lease payments during the lease ...