IMPAIRMENT

IFRS U.S GAAP

IMPAIRED ONLY WHEN THE C.V IMPAIRED ONLY WHEN THE C.V
IS MORE THAN THE RECOVERABLE IS MORE THAN THE R.A
AMOUNT

Must assess annually Impaired only when events

regarding the situations tell that carrying value will
which can impair asset not be recovered in future

RECOVERABLE AMOUNT: GREATER OF TWO STEPS

TESTED FOR IMPAIRMENT

THROUGH RECOVERABILITY
VALUE IN USE TEST. IF ASSET IS IMPAIRED,
F. V LESS ANY SELLING VIU=P.V OF FUTURE CASH THEN LOSS IS MEASURED IN
COST FLOW STREAMS SECOND STEP.

IF YES

CONSIDERED IMPAIRED IF
WRITE DOWN
C.V IS GREATER THAN
TO THE F.V
FUTURE UNDISCOUNTED
AND RECORD
CASH FLOWS
A LOSS EQUAL
TO C.V-F.V. IF
F.V IS NOT
GIVEN, THEN
USE
DISCOUNTED
CASH FLOWS.