IAS 36 Impairment of Assets

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Farhat Lectures. The # 1 CPA & Accounting Courses

5 жыл бұрын

In this session, I cover IAS 36 impairment of assets. IAS 36 is covered in international accounting and ACCA exam. IAS 36 Impairment of Assets sets out requirements for impairment which cover a range of assets (and groups of assets, termed 'cash generating units' or CGUs). The core underlying principle of IAS 36 Impairment of Assets is that an asset’s carrying value in the financial statements of the company should not exceed the highest amount the business can recover through its use or sale.
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The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired. The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. IAS 36 also applies to groups of assets that do not generate cash flows individually (known as cash-generating units).
IAS 36 applies to all assets except those for which other Standards address impairment. The exceptions include inventories, deferred tax assets, assets arising from employee benefits, financial assets within the scope of IFRS 9, investment property measured at fair value, biological assets within the scope of IAS 41, some assets arising from insurance contracts, and non-current assets held for sale.
The recoverable amount of the following assets in the scope of IAS 36 must be assessed each year: intangible assets with indefinite useful lives; intangible assets not yet available for use; and goodwill acquired in a business combination. The recoverable amount of other assets is assessed only when there is an indication that the asset may be impaired. Recoverable amount is the higher of (a) fair value less costs to sell and (b) value in use.
Fair value less costs to sell is the arm’s length sale price between knowledgeable willing parties less costs of disposal.
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Пікірлер: 51

@jessicaling2109 4 жыл бұрын

going to take my cpa board in the philippines in october. your financial accounting videos are great help in refreshing concepts.

@umairirfan9284 4 жыл бұрын

JazakAllah Sir Farhat, your lectures really helped me in gaining an insight of ias-36, may Almighty bless you.

@AccountingLectures 4 жыл бұрын

You are most welcome. Please subscribe and share. If you want to access more resources, check my website: ✔farhatlectures.com/ ✔Instagram: @farhatlectures ✔ Linkedin: www.linkedin.com/in/professorfarhat/ ✔Facebook:@accountinglectures ✔Twitter: @farhatlectures 🎤Email: Mansour.farhat@gmail.com

@rachinderkaurmatharu3685 2 жыл бұрын

Very well explained. So easy to under. Thanks

@adazhang1579 3 жыл бұрын

Best lectures on KZbin, very clear, and in-depth. thank you!

@AccountingLectures 3 жыл бұрын

@jumalenanyokie9522 Жыл бұрын

I have really understood impairment very well. Thank you for well detailed explanation

@AccountingLectures Жыл бұрын

Glad to hear that! Thank you and please visit the website for more farhatlectures.com/

@imranmushtaq7445 4 жыл бұрын

Jazak 'Allah Mr Farhat you really explained in elaborate way and with good practical examples

@AccountingLectures 4 жыл бұрын

You are most welcome. Please subscribe and share. If you want to access more resources, check my website: farhatlectures.pathwright.com/library/ Connect with me: Instagram Account: instagram.com/farhatlectures/ Linkedin: www.linkedin.com/in/professorfarhat/ Facebook: facebook.com/accountinglectures Twitter: twitter.com/farhatlectures Email: Mansour.farhat@gmail.com

@zulfiqardurrani3483 2 жыл бұрын

Ur the best lecturer of CPA,salute to u sir...

@AccountingLectures 2 жыл бұрын

THANK YOU. Please connect with me: linktr.ee/farhatlectures

@anandkhangarot8694 5 жыл бұрын

Thanks Farhat for quick revision of this IAS.

@AccountingLectures 5 жыл бұрын

You are welcome. Please subscribe and share the channel on social media. Please connect with me: Instagram: instagram.com/farhatlectures/ LinkedIn: www.linkedin.com/in/professorfarhat/ Facebook: facebook.com/accountinglectures

@mohamedmorsy9426 3 жыл бұрын

This is a concise and comprehensive explanation which helps a lot! Thank you for that!! I have one question, what if the reversal amount was higher than the initial impairment loss, would we consider the remaining in OCI or income statement?

@nobelnoel8718 Жыл бұрын

I learned so much in this video rather than listening to our teacher's 2 hour lecture. Thanks!

@AccountingLectures Жыл бұрын

Thank you. Please check my website for more: ✅farhatlectures.com/

@pritamlaskar7265 2 жыл бұрын

Nowadays I skip my university accounting classes cause I don't understand anything there. In place, I go through your videos which are very simple and easy to understand. Thank you so much! I have got semester exams in two weeks and your videos are truly helping me.

@AccountingLectures 2 жыл бұрын

Happy to help! Please take a look at my additional resources: farhatlectures.pathwright.com/dashboard/

@ErniSusanty 4 жыл бұрын

in the video of 9:55, you mention about approved budget and should cover a maximum of "five years" ; does this "five years" only your estimation based on your experience? or it is written in the IAS 36 rule? thanks before....

@malikbasitawan3820 4 жыл бұрын

Jazakallah sir.. It helped me out so much... i am really thankful to u..

@AccountingLectures 4 жыл бұрын

@tarkeshpatro2996 Жыл бұрын

Hi Sir How the increase in interest rate requires us to impair an asset, I am not able to connect this ?

@ibrahimjalal4606 4 жыл бұрын

i benefited a lot from this lecture thanks

@AccountingLectures 4 жыл бұрын

@zeto9milan Жыл бұрын

what happens with the extra $25000 since in theory the new book value of the equipment is $900000 which is above $8750000. for reference min 22:37

@nornoramramr2758 3 жыл бұрын

God bless you Mr. Farhat

@AccountingLectures 3 жыл бұрын

Thank you. Here's my international accounting course: farhatlectures.pathwright.com/library/international-accounting-ifrs/about/

@sudiptoroy4057 2 жыл бұрын

Sir what is the difference between impairment and revaluation

@rayomer9261 Жыл бұрын

Tysm!

@ahmedrifayi8257 Жыл бұрын

Very well explained, Thank you so much

@AccountingLectures Жыл бұрын

Please visit my website for more resources farhatlectures.com/

@justinelicuanan2874 3 жыл бұрын

Thank you for this video sir!

@AccountingLectures 3 жыл бұрын

You are welcome. Check my website for more: ✔farhatlectures.com/ ✔Instagram: @farhatlectures ✔ Linkedin: www.linkedin.com/in/professorfarhat/ ✔Facebook:@accountinglectures ✔Twitter: @farhatlectures 🎤Email: Mansour.farhat@gmail.com

@accountsfundamentals7430 Жыл бұрын

Wonderful teaching ❤

@AccountingLectures Жыл бұрын

Please take a look at my website for additional resources: farhatlectures.com/

@impactfulafrica 5 жыл бұрын

Thanks Prof. very clear and understood

@AccountingLectures 5 жыл бұрын

@waikiki4033 5 жыл бұрын

Hello prof. Farhat Nice job preparing this lecture - everything was really clear. Altough i feel like it lacks information about goodwill and differences between accounting goodwill against rest of assets and CGU. If you ever decide to lecture that topic I'd be very greatful. Sincerelly

@AccountingLectures 5 жыл бұрын

Did you check my intermediate accounting lessons? Chapter 12? kzbin.info/www/bejne/fGLHn56vaslrptE

@FBeckenbauer4 Жыл бұрын

Wouldn't it still make sense to record a revaluation gain of $25k to bring the Asset up to $900k, it's true value. We're trying to show our most accurate figures on statements, as is we're just fixing a previous error without giving a true reflection of our Assets.