IAS 36: relevant information you need

IAS 36 deals, among other things, with impairment. This impairment of assets, there are quite a few difficulties in that. Are you curious about what this is all about and would you like to get acquainted with a website where you can take a good look at what the explanation is? It’s always good to take a look beyond the usual. We’d like to take you through a little explanation.

IAS 36 explained

Asset impairment aims to ensure that the assets of an entity are not recorded at an amount higher than their recoverable value. By this value, we mean the fair value less cost to sell and the value in use. Note, of course, that there are some exceptions to this. Namely:

Goodwill
Certain intangible assets for which an annual review is required

These exceptions refer to the fact that certain entities are required to test for impairment. The test must then be performed for a particular entity, in the sense that if an asset does not generate cash inflows that are independent of those of other assets to a space degree.

When exactly was IAS 36 introduced? It was reissued in March 2004. It therefore also addresses the application of goodwill and intangible assets acquired in business combinations with agreements on or after March 31, 2004.

Then something about the history of IAS 36, because of course there is a lot to tell about the history. We will just keep it short, because we just want you to know the relevant information.

So about the history the following. First we go all the way back to the year 1997. Because then there was the exposure draft E55. That’s been back for a while, and the year after that a real version came into force, it then concerned all financial statements relating to period July 1, 1999 or after. The asset impairment review, that was done on March 31, 2004. Now we are already coming to the current state of affairs of course. Because the current version as you know it now and as you will work with it, is the version of 2004 and later. And that’s why it’s also important not to go on too much about history. We think it’s especially important that you know now that it was introduced in the year 1997, at least the draft version.

By now you are probably wondering how to go about identifying an asset that may be impaired. It is well established that an assessment must be made at the end of each reporting period. IAS 36 also contains a list for that. So IAS 36 is leading in this.

Meet Annualreporting.info

We hope that everything is a bit more clear right now. You have read about IAS 36, read the short introduction and now it is time to meet www.annualreporting.info.This is a very useful site. You can not only check more about IAS 36, also about a lot of other important topics. Just open the website, navigate and find out yourself!

If you do have any questions, please let us know. We always want to help our readers and customers, that is our main goal.