Marketing and Consumption

bjective To ensure that summations are carried at no more than their retrievable come up, and to define how recoverable amount is determined. Scope IAS 36 applies to all assets eject: [IAS 36.2] inventories (see IAS 2) assets arising from construction contracts (see IAS 11) deferred tax assets (see IAS 12) assets arising from employee benefits (see IAS 19) financial assets (see IAS 39) enthronization property carried at fair nourish (see IAS 40) agricultural assets carried at fair value (see IAS 41) insurance contract assets (see IFRS 4) non-current assets held for sale (see IFRS 5) Therefore, IAS 36 applies to (among other assets): land buildings machinery and equipment investment property carried at cost intangible assets goodwill investments in subsidiaries, associates, and joint ventures carried at cost assets carried at revalued amounts under IAS 16 and IAS 38 Key Definitions [IAS 36.

6] Impairment: an asset is stricken when its carrying amount exceeds its recoverable amount Carrying amount: the amount at which an asset is recognised in the balance sheet later deducting accumulated depreciation and accumulated impairment losses Recoverable amount: the higher of an assets fair value less cost to sell (sometimes called net selling price) and its value in use blank value: the amount obtainable from the sale of an asset in an arms length transaction between knowledgeable, willing parties economic value in use: the discounted present value of the future cash in flows expected to arise from: the continuing use of an asset, and from its disposal at the end of its useful life Identifying an Asset That May Be Impaired At each balance sheet date, review all assets to picture for any reading that an asset may be impaired (its carrying amount may be in excess of the greater of its net selling price and its value in use). IAS 36 has a list of external and internal indicators of impairment. If there is an indication that an asset may be... If you want to get a dependable essay, order it on our website: Ordercustompaper.com

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