Wiley Interpretation and Application of IFRS Standards

13 IMPAIRMENT OF ASSETS AND NON-CURRENT ASSETS HELD FOR SALE

• Introduction
• Definitions of Terms: Impairment of Assets
• Impairment of Assets (IAS 36)
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    • Scope of IAS 36
    • Principal requirements of IAS 36
    • Identifying impairments
    • Computing recoverable amounts—general concepts
    • Determining fair value less costs to sell
    • Computing value in use
    • Cash-generating units
    • Discount rate
    • Corporate assets
    • Accounting for impairments
    • Reversals of impairments under the historical cost method of accounting
    • Reversals of impairments under the revaluation method
    • Insurance and other recoveries
    • Disclosure requirements
• Examples of Financial Statement Disclosures
• Definitions of Terms: Non-Current Assets Held for Sale
• Non-Current Assets Held for Sale
  •  
    • Held-for-sale classification
    • Measurement of non-current assets held for sale
    • Change of plans
    • Presentation and disclosure
• Discontinued Operations
  •  
    • Presentation and disclosure
• Examples of Financial Statement Disclosures
• US GAAP Comparison

INTRODUCTION

This chapter deals both with IAS 36, Impairment of Assets, and IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. IAS 36 identifies when the carrying amount of a certain asset needs to be reduced to its recoverable amount. IFRS 5 determines the treatment of non-current assets held for sale and discontinued operations. An impairment exists when the recoverable amount (the higher of fair value less cost to sell and value in use) is less than the carrying amount. This assessment ...