New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 22 Impairment of assets

1 Introduction

2 Comparison between Section 27, previous UK GAAP and IFRS

   2.1 Key differences between Section 27 and previous UK GAAP

       2.1.1 Scope

       2.1.2 Timing of impairment tests

       2.1.3 Allocation of goodwill

       2.1.4 Merging of newly acquired businesses

       2.1.5 Allocation of impairment losses

       2.1.6 Subsequent monitoring of cash flows

   2.2 Key differences between Section 27 and IFRS

       2.2.1 Scope

       2.2.2 Timing of impairment tests

       2.2.3 Allocation of goodwill

       2.2.4 Reversal of goodwill impairment

3 Requirements of Section 27 for impairment

   3.1 Objective and scope

   3.2 Terms used in Section 27

   3.3 Impairment of inventories

4 Impairment of assets other than inventories

   4.1 General principles

   4.2 Testing individual assets or cash generating units

   4.3 Indicators of impairment

       4.3.1 Future performance

       4.3.2 Individual assets or part of CGU?

       4.3.3 Interest rates

   4.4 Measuring recoverable amount

   4.5 Fair value less costs to sell (FVLCS)

       4.5.1 Estimating fair value less costs to sell without an active market

       4.5.2 Effect of restrictions on fair value

   4.6 Value in use (VIU)

       4.6.1 Estimating the future pre-tax cash flows of the CGU under review

       4.6.2 Financing and taxation

       4.6.3 Restructuring and improvements

       4.6.4 Terminal values

       4.6.5 Discount rate

       4.6.6 Assets held for their service potential ...