IAS 36, what is that exactly? In this article we write for www.annualreporting.info, we will explain a lot, including what IAS 36 is. First of all, we’ll start with the definition, because IAS 36 actually requires a company to test whether an asset is impaired in certain circumstances. Let’s start with this definition so that you have at least some background. Do you already know everything you need to know about this? Are there any other specifics about IAS and possibly IFRS that you need to find out? We’ve figured it out for you.
IAS 36: do you know what you have to know?
This IAS prescribes in certain circumstances to test whether an asset is subject to impairment. What about goodwill? Then an annual impairment test must be performed. In addition, in some other cases a company must test whether a fixed asset is subject to impairment. For example, it must do so in the following cases, among others:
- Damaged obsolescence of the asset
- Obsolescence of the asset
- Other circumstances of the case
We also want to tell you more about Annual Reporting, the website. This is the knowledge base for IFRS reporting. And IAS 36 also belongs to this reporting. If we take a closer look at the website, we see IFRS topics from A to Z: you can pick a topic and then read about it. Even more useful: the IFRS jargon. The IFRS jargon represents a list of keywords that are not definitions, but are really useful to read. If you read them, you can pick a first letter and then search for the word. For exmaple, if you want to know what ‘accounting mismatch’ is, you click on the website page ‘IFRS jargon’ and then to ‘A’. The first word is indeed ‘accounting mismatch’. Click the link and discover the definition. We will write it here: “An accounting mismatch could occur where, in the absence of the fair value option, a financial asset would be classified as available for sale (with most changes in fair value recognised directly in equity) with a related liability is measured at armortised cost (with changes in fair value not recognised)”. Please note that this is stated on their website. Also useful is the fact that they give some examples. At the end of this page, there are IFRS Synonyms and related articles. Just in case, maybe you want to know more about the topic. But if you quickly want to search for the meaning of a word in this context, the IFRS jargon is great. The impairment of financial assets (IAS 36) is also explained!
IAS 36 the impairment of assets – to conclude
IAS 36 actually requires a company to test whether an asset is impaired in certain circumstances. If we had to give a very short summary, we would give this as a summary.
But of course there is much more information to be found. And where better to do that than through the website? Actually, nowhere! Check it out for yourself at www.annualreporting.info!
Do you need more information? Please let us know, also do not hesitate to ask more questions. We hope that everything is clear at this point!
