Insights into IAS 36 – Impairment of Assets

IAS 36 Impairment of Assets is not a new standard, and while many of its requirements are familiar, an impairment review of assets (either tangible or intangible) is frequently challenging to apply in practice. This is because IAS 36’s guidance is detailed, prescriptive and complex in some areas.

The Insights into IAS 36 series have been written to help preparers of financial statements and those charged with the governance of reporting entities understand the requirements set out in IAS 36, and revisit some areas where confusion has been seen in practice.

The first three publications in the Insights into IAS 36 series are:

The first publication Overview of the Standard provides an “at a glance” overview of IAS 36’s main requirements and outlines the major steps in applying those requirements.

The second publication Scope and structure of IAS 36 looks at the scope of the impairment review (i.e., the types of assets that are included) and how the review is structured (i.e., the level at which assets are reviewed).

The third publication mentioned above explains if and when a detailed impairment test as set out in IAS 36 is required.

The publications mentioned above follow this IFRS Adviser Alert.