#ACCA #DipIFR #IAS_36

IAS 36 : Impairment of assets


The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.


Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell



Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400


Impairment?


Answer:

Carrying amount = 1000-300=700


Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400

So recoverable amount = 400


Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400

So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300

@MansoorMizbani

@ACCAIrann

Question ⁉️

For an asset we have :

At 31.12.2000:
Cost:400. (Cost model)
Impaired to : 300

On 1.1.2001:
Remaining useful life of asset is 10 years.


On 31.12.2001:
the recoverable amount increases to $500.


what are the entries for year ended 31.12.2001?

سوال:یک دارایی در 31.12.2000 به بهای 400 میباشد(دارایی به روش cost model میباشد).در این تاریخ دارایی به عدد 300 کاهش ارزش میابد.
در 1.1.2001 عمر باقیمانده دارایی 10 سال است.
ارزش بازیافتنی این دارایی در 31.12.2001 به عدد 500 افزایش میابد.
مطلوبست ثبتهای مربوطه در تاریخ 31.12.2001؟



Answer ✅


@31.12.2000
Impairment loss(زیان کاهش ارزش):
Dr:SoPoL(حساب سود و زیان) 100
Cr:asset(دارایی) 100

@31.12.2001
Depreciation(استهلاک)=300/10=30
Dr:SoPoL 30
Cr:asset 30

So carrying amonut (ارزش دفتری) =270 < recoverable amount(ارزش بازیافتنی)=500
So we must REVERSE the impairment:

Reversal(بازگشت کاهش ارزش):
Dr :asset 90(360-270)*
Cr SoPoL 90

*چون از روش cost استفاده میشود،بازگشت تا مقدار بهای تاریخی مستهلک شده(یعنی 400 که به مدت 1 سال از 10 مستهلک گردد)مجاز است و مازاد بر آن را نمیتوان بازگشت داد پس تا مقدار 400-40=360 مجاز به برگشت میباشیم.


#IAS_36
#Impairment_Reversal

@MansoorMizbani

Telegram.me/accairann

IAS 36 : Impairment of assets


The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.


Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell



Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400


Impairment?


Answer:

Carrying amount = 1000-300=700


Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400

So recoverable amount = 400


Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400

So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300




#ACCA
#DipIFR
#IAS_36



@MansoorMizbani
@ACCAIrann

Question ⁉️

For a CGU:

Cost=1000

Accumulated Depreciation= 400

Value in use(VIU)=300
Fair values less cost to sale(FVLCTS)=350


Impairment loss?

Answer ✅

According to IAS 36,

Calculate LOWER of carrying amount & recoverable amount.


Recoverable amount = HIGHER of VIU & FVLCTS.


So:
VIU = 300
FVLCTS = 350

Recoverable amount = 350.
Carrying amount = 1000-400=600

So IMPAIRMENT LOSS= 600-350 = 250.



#IAS_36



@MansoorMizbani
@ACCAIrann