7.13.1 Impairment—scope. The scope of instruments subject to the IFRS 9 impairment requirements is similar to the scope of instruments subject to ASC 326. Both apply to financial assets measured at amortized cost, as well as to off-balance sheet exposures, such as loan commitments and guarantees. Neither apply to investments in equity ...
For most companies, when taking on the transition to IFRS 16 ''leases'', the standard has been reviewed in isolation. However, with IFRS 16 bringing on ''right of use'' (ROU) assets, a question that we are being asked by our clients is how you factor these ROU assets into your impairment assessment under IAS 36 ''Impairment of Assets''.
– 3 – (V) Explanation of the Board on the reasonableness of the provision for impairment of the assets In view of the current situation of Production Line 580 and Production Line 800, the Board resolved to make provision for asset impairment of RMB304,315,500 for ...
The aim of IAS 36, Impairment of Assets, is to ensure that assets are carried at no more than their recoverable amount. If an asset''s carrying value exceeds the amount that could be received through use or selling the asset, then the asset is impaired and the standard requires a company to make provision for the impairment loss. An …
IAS 36 mandates companies to evaluate whether there''s any indication of asset impairment at every reporting date (IAS 36.9). Entities must consider various indicators. External signs include a noticeable decrease in an asset''s market value beyond expected wear and tear. Significant adverse changes in technology, market conditions, …
- 2 - A breakdown is set out below: Unit: RMB ten thousand yuan Item Provision for impairment in the first three quarters of 2020 Provision for impairment in 2020 Credit impairment losses: 32,428.73 14,954.75 Including: Trade receivables 24,522.20 6,207.10
IFRSs''. A decision to sell an asset is an indicator of impairment (see section 6 of this factsheet) and will trigger an impairment review. This will result in IAS 36 being applied immediately before the asset is classified as held for sale (assuming the relevant criteria are met) and treated in accordance with IFRS 5.
An impaired asset occurs when the recoverable value or fair market value of an asset is lower than its carrying value. Long-term assets, such as patents, goodwill, PP&E, etc., are subject to asset impairment due to their long economic lives, especially when their depreciation or amortization expenses are underestimated.
provision for asset impairment of the Company complied with Accounting Standards for Business Enterprises and the Company''s relevant accounting policies, objectively and fairly reflecting the financial position and operating results of the Company.
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The impairment definition refers to a permanent fall in an asset''s value. The asset may be an intangible asset or a fixed one. The decrease typically happens due to internal and external factors, like a change in the legal climate, increased competition, physical damage to the asset, etc. Impairment of assets from time to time prevents ...
From January to June 2023, the total impairment provision of the Company was RMB 6.21 billion. The details are as follows: 1. Provision for impairment of accounts receivable and other financial assets. The provision for impairment of financial assets, such as the accounts receivables, other receivables, long-term receivables and debt ...
Purpose. IAS 36 – Impairment of Assets seeks to. prescribe procedures an entity applies to ensure assets are carried at no more than the recoverable amount. specified how to measure the recoverable amount. specifies when an entity should reverse an impairment loss, and. prescribes disclosures.
Section 27 of FRS 102 sets out the general principle that assets must not be carried in the. FRS 102.27.1. balance sheet at more than their recoverable amount. Section 27 deals with the impairment of inventories separately from the impairment of other assets within its scope (see section. 4).
IAS 36 requires that both intangible assets with an indefinite useful life (and any intangibles not yet ready for their intended use) and goodwill be tested for impairment at least annually. For other asset classes that fall under the standard, the entity is required to test the asset for impairment when indicators of impairment are present.
I. DETAILS OF PROVISION FOR ASSET IMPAIRMENT Item Provision/ (reversed) for the half year of 2020 (RMB million) Provision for impairment of fixed assets 221.81 Provision for impairment of construction in progress 8.03 Provision for impairment of 13.59