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WorkpaperIAS 36 — Impairment of AssetsL2 · L3 · L4

Impairment note

5 missions7 sections to document35 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

Prepare the note: losses and reversals by class (profit or loss and other comprehensive income), information on each material loss or reversal (events, amount, recoverable amount, basis, rates) and, for units carrying goodwill, key assumptions, horizon, rates and sensitivity.

7 sections · 22 blocks · 0 calculations · 0 entries

IAS 36 §72
IAS 36 §73
IAS 36 §126
IAS 36
IAS 36 §128
IAS 36 §129
IAS 36 §130
IAS 36
IAS 36
IAS 36 §133
IAS 36 §134
IAS 36

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

5 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Subsidiary with non-controlling interests: notional goodwill, loss and disclosures

Case tasks documented here

What is the impact on the consolidated financial statements?
Which disclosures do you provide in the note?

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
320,000
Impairment losses of the period recognised in other comprehensive income
NumberRequired
0
Total impairment losses presented in the note
NumberRequired
320,000
Reversals of the period in profit or loss
Number
Reversals of the period in other comprehensive income
Number
Recoverable amount presented
Number
2,700,000
Basis of the recoverable amount
Choice
Value in use
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
11 %
Discount rate of the previous estimate
Number
10 %
Goodwill of the unit after the test
Number
160,000
Horizon of the detailed projections
Number
5 years
Growth rate beyond the horizon
Number
2 %

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References

Checks and financial statement impact

The total presented equals the losses in profit or loss and in other comprehensive incomePass
The conclusion on sensitivity is documentedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Professional file: annual impairment review of an industrial group

Case tasks documented here

Which information by class of assets and on the loss of the Pumps unit and the reversal on line M7 do you present? Calculate the loss of the property, plant and equipment class.
Which information on estimates and which sensitivity do you present for the Pumps and Services units?
Correct the draft disclosure note and reply to the reviewer's notes.

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
860,000
Impairment losses of the period recognised in other comprehensive income
NumberRequired
0
Total impairment losses presented in the note
NumberRequired
860,000
Reversals of the period in profit or loss
Number
200,000
Reversals of the period in other comprehensive income
Number
0
Recoverable amount presented
Number
Basis of the recoverable amount
Choice
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
Discount rate of the previous estimate
Number
Goodwill of the unit after the test
Number
Horizon of the detailed projections
Number
Growth rate beyond the horizon
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
No reasonably possible change would cause a loss
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References

Checks and financial statement impact

The total presented equals the losses in profit or loss and in other comprehensive incomePass
The conclusion on sensitivity is documentedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Professional file: annual impairment review of an industrial group

Case tasks documented here

Which information by class of assets and on the loss of the Pumps unit and the reversal on line M7 do you present? Calculate the loss of the property, plant and equipment class.
Which information on estimates and which sensitivity do you present for the Pumps and Services units?
Correct the draft disclosure note and reply to the reviewer's notes.

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
0
Impairment losses of the period recognised in other comprehensive income
NumberRequired
0
Total impairment losses presented in the note
NumberRequired
0
Reversals of the period in profit or loss
Number
200,000
Reversals of the period in other comprehensive income
Number
Recoverable amount presented
Number
650,000
Basis of the recoverable amount
Choice
Value in use
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
11 %
Discount rate of the previous estimate
Number
12 %
Goodwill of the unit after the test
Number
Horizon of the detailed projections
Number
Growth rate beyond the horizon
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
No reasonably possible change would cause a loss
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References

Checks and financial statement impact

The total presented equals the losses in profit or loss and in other comprehensive incomePass
The conclusion on sensitivity is documentedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Professional file: annual impairment review of an industrial group

Case tasks documented here

Which information by class of assets and on the loss of the Pumps unit and the reversal on line M7 do you present? Calculate the loss of the property, plant and equipment class.
Which information on estimates and which sensitivity do you present for the Pumps and Services units?
Correct the draft disclosure note and reply to the reviewer's notes.

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
1,960,000
Impairment losses of the period recognised in other comprehensive income
NumberRequired
0
Total impairment losses presented in the note
NumberRequired
1,960,000
Reversals of the period in profit or loss
Number
Reversals of the period in other comprehensive income
Number
Recoverable amount presented
Number
8,640,000
Basis of the recoverable amount
Choice
Value in use
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
10 %
Discount rate of the previous estimate
Number
9.5 %
Goodwill of the unit after the test
Number
0
Horizon of the detailed projections
Number
5 years
Growth rate beyond the horizon
Number
0 %

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References

Checks and financial statement impact

The total presented equals the losses in profit or loss and in other comprehensive incomePass
The conclusion on sensitivity is documentedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Professional file: annual impairment review of an industrial group

Case tasks documented here

Which information by class of assets and on the loss of the Pumps unit and the reversal on line M7 do you present? Calculate the loss of the property, plant and equipment class.
Which information on estimates and which sensitivity do you present for the Pumps and Services units?
Correct the draft disclosure note and reply to the reviewer's notes.

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
0
Impairment losses of the period recognised in other comprehensive income
NumberRequired
0
Total impairment losses presented in the note
NumberRequired
0
Reversals of the period in profit or loss
Number
Reversals of the period in other comprehensive income
Number
Recoverable amount presented
Number
3,700,000
Basis of the recoverable amount
Choice
Value in use
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
10 %
Discount rate of the previous estimate
Number
Goodwill of the unit after the test
Number
400,000
Horizon of the detailed projections
Number
5 years
Growth rate beyond the horizon
Number
0 %

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References

Checks and financial statement impact

The total presented equals the losses in profit or loss and in other comprehensive incomePass
The conclusion on sensitivity is documentedPass

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

Inputs

Class of assets or unit concerned (segment if any)
TextRequired
Impairment losses of the period recognised in profit or loss
NumberRequired
Impairment losses of the period recognised in other comprehensive income
NumberRequired
Total impairment losses presented in the note
NumberRequired
Reversals of the period in profit or loss
Number
Reversals of the period in other comprehensive income
Number
Recoverable amount presented
Number
Basis of the recoverable amount
Choice
Fair value less costs of disposal / Value in use
Discount rate of the current estimate
Number
Discount rate of the previous estimate
Number
Goodwill of the unit after the test
Number
Horizon of the detailed projections
Number
Growth rate beyond the horizon
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Consistency of the units

Analysis

IAS 36 §72IAS 36 §73

Units identified consistently
Checklist
- Units unchanged from the prior period or change justified
- Change in aggregation described when a loss or reversal is recognised

Disclosure checklist

Disclosure

IAS 36 §126IAS 36IAS 36 §128IAS 36 §129IAS 36 §130IAS 36IAS 36IAS 36 §133IAS 36 §134IAS 36

Information by class of assets
ChecklistRequired
- Losses and reversals in profit or loss and line items concerned
- Losses and reversals in other comprehensive income (revalued assets)
- Presentation possible in the reconciliation of carrying amounts
- By reportable segment (IFRS 8)
Material loss or reversal of the period
Checklist
- Events and circumstances
- Amount, nature of the asset or description of the unit
- Recoverable amount and its basis
- Current and previous discount rate (value in use)
- Other losses and reversals: main classes and events
Units carrying significant goodwill or indefinite-life intangibles
Checklist
- Carrying amount of goodwill and indefinite-life intangibles
- Basis of the recoverable amount, key assumptions and management approach
- Projection horizon, growth rate and discount rate
- Sensitivity if a reasonably possible change would cause a loss
- Goodwill spread over several units without a significant amount
- Unallocated goodwill: amount and reasons
- Assumptions of other recoverable amounts (encouraged disclosure)

Key assumptions and sensitivity

Judgment

IAS 36 §134

Sensitivity to disclose
JudgmentRequired
A reasonably possible change in a key assumption would cause a loss: sensitivity disclosed / No reasonably possible change would cause a loss
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Conclusion on the completeness of the impairment note
ConclusionRequired

Normative references

References

Paragraphs cited in this workpaper (verification status shown from the register)
References