IAS 36 ‘Impairment of Assets’ is not a new Standard, and while many of its requirements are familiar, an impairment review of assets (either tangible or intangible) is frequently challenging to apply in practice. This is because IAS 36’s guidance is detailed, prescriptive and complex in some areas.

The articles set out below in our ‘Insights into IAS 36’ series have been written to assist preparers of financial statements and those charged with the governance of reporting entities understand the requirements set out in IAS 36, and revisit some areas where confusion has been seen in practice.

We hope you find the information in these articles helpful in giving you some insight into IAS 36. If you would like to discuss any of the points raised, please speak to your Grant Thornton advisor.

Overview of the Standard

'At a glance’ overview of IAS 36’s main requirements and major steps in applying them.

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Scope and structure

Taking a closer look at the scope of the impairment review and how it is structured.

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Undertaking an impairment review

When is a detailed impairment test, as set out in IAS 36, required?

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Identifying cash-generating units

Identifying CGUs is a critical step in the impairment review and can have a significant impact on its results.

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Allocating assets to cash-generating units

How do you determine which assets belong to which CGUs, or groups of CGUs?

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Allocating goodwill to cash-generating units

After the entity identifies its CGUs, it must determine which assets belong to which CGUs, or groups of CGUs.

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