IAS36 Impairment of Assets(NCA)

Compared carrying amount with recoverable amount

recoverable amount is the amount higher between FV-cost of disposal and value in use

Dr OCI Dr Expense-impairment loss Cr NCA

Indicates of impairment

external

A significant fall in market value

A significant change in PESTEL enviroment

An increase in market intere rate

Carrying amount of the entity's' net assets being more than its market capitalisation

internal

obsolescence

physical damage

adverse change in economic performance

No indications of impairment

An intangible asset wiht an indefinite useful life

Goodwill

Cash Generating Unit(CGU)

  1. Current Asset no impairment loss

2.Obviously damage

3.Goodwill

4.Pro-rate basis based on carrying amount