This online IFRS training is being delivered live in a single 4 hour session which runs from 13:00 – 17:00 London (UK).
You can learn more about our virtual, online courses and how they work on our course FAQ page. Or view our Virtual Classroom schedule to see what else is being delivered live in our online classrooms. If you don’t see the IFRS training topic, you are looking for, or if you would like an online classroom in another time zone, please tell us.
This focus session deals with key considerations when applying IAS 36 Impairment of Assets. The Standard applies widely, both to non-financial assets such as property, plant and equipment, goodwill, intangible and right-of-use assets and to financial assets such as interests in associates and joint ventures. Since its introduction, IAS 36 has proved to be complex to apply and involves significant subjective judgements. Its valuation model requires the calculation of an asset’s (or cash-generating unit’s) recoverable amount: this may involve calculating both value in use by estimating future cash flows and determining a suitable discount rate and fair value using a valuation technique under IFRS 13 Fair Value Measurement.
The potential impact of the coronavirus pandemic on applying IAS 36 is to increase the frequency of impairment testing and the complexity of its application. When an entity’s operations have been adversely affected, it is likely that more assets must be tested and some may have to be tested more often in a reporting period. Heightened uncertainty about the future will affect estimates of cash flows and discount rates and could also change which method of determining value in use is appropriate. Pandemic-derived uncertainties will also impact valuation techniques for determining fair values. This session explains how to apply IAS 36 in these circumstances.
The session also enables participants to raise and discuss specific issues that they have identified or anticipate when applying IAS 36 in practice.