The 2026 proposal on impairment indicators

Learning objectives

• Explain that the 2026 proposal on impairment indicators is not an effective requirement.L4

Normative references

• IAS 28 §41CIn addition to the events in para. 41A, objective evidence of impairment of the net investment in the equity instruments of the associate or joint venture includes information about significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment of the investee and indicate that the cost of the investment may not be recovered, as well as a significant or prolonged decline in the fair value of the investment below its cost. Para. 41B specifies that the disappearance of an active market merely because the instruments are no longer publicly traded is not evidence of impairment, and that a downgrade of credit rating or a decline in fair value is not, of itself, such evidence.

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

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