IAS 36 and the Framework for the preperation and presentation of Essay

IAS 36 and the Framework for the preperation and presentation of financial statements - Essay ExampleThe carrying bar can be defined as the amount at which an summation is recognized in the balance sheet slight accumulated depreciation and accumulated impairment losses. The recovery amount can be defined as the higher of an assets fair value less costs to sell (usually called net sales) and its value in drop (homepage)2. The International Accounting Standards Board has prescribed the identification and conditions for assets to be impaired. Every reporting date at the end of an accounting period every organisation applying the rules of the IFRS should test if any asset is impaired. If any such(prenominal) asset shows that it is impaired then the organisation shall estimate the recovery amount of such asset. Other conditions take over to this test includes the test of for an intangible asset with an indefinite useful life or an intangible asset not yet available for use for impair ment annually by comparing its carrying amount with its recoverable amount. This impairment test may be performed at any time during an annual period, provided it is performed at the said(prenominal) time every year. Different intangible assets may be tested for impairment at opposite times. However, if such an intangible asset was initially recognized during the current annual period, that intangible asset shall be tested for impairment before the end of the current annual period, test goodwill acquired in a business combination for impairment annually in accordance with paragraphs 80-993 (though the guidance on how to banner goodwill impairment should be included in Section 27, rather than referring to paragraphs 80-99 of IAS 36 Impairment of Assets)4. The IASB excessively add to the above rule that if an asset may be impaired by its recoverable amount should be estimated for the individual asset otherwise an organisation should determine the recoverable amount of the cash gen erating whole to the group where the asset belongs (the assets cash-generating unit)5.The measurement of the assets recovery amount