Impairment by reference to IAS 36

Learning objectives

• Identify the situations in an IAS 16 file that require a test under IAS 36.L2, L3
• Calculate the impairment loss when the recoverable amount is given.L3
• Analyse the effect of an impairment loss on future depreciation charges.L4

Normative references

• IAS 16 §63To determine whether an item of property, plant and equipment is impaired, the entity applies IAS 36.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• At the reporting date, an entity notes the following facts about an industrial press measured under the cost model. Which one requires IAS 36 to be applied to determine whether the press is impaired?L3