IAS 36Chapter 2Lesson 1
The vocabulary of impairment
Step 1 of 11Learning objectives
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The key words of IAS 36, linked in a single chain of reasoning: carrying amount, fair value less costs of disposal, value in use, recoverable amount (the higher of the two) and impairment loss, with a complete worked example, its entry, then the notions of cash-generating unit and corporate assets.
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Learning objectives
- Define in your own words carrying amount, recoverable amount, fair value less costs of disposal, value in use and impairment loss.
- Explain why recoverable amount is the higher of the two amounts, not the lower.
- Work through a complete calculation: carrying amount, recoverable amount, impairment loss and entry.
- Recognise a cash-generating unit and a corporate asset.