Essentials - A Focus on IAS 36 Impairment of Assets (Virtual Classroom)

Introduction

This online IFRS training is being delivered live in a single 4 hour session which runs from 13:00 – 17:00 London (UK).

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. IAS 36 is complex to apply and involves significant judgements and estimates. 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 impact of the Covid-19 pandemic was to increase the frequency of impairment testing and the complexity of its application. Subsequently political and economic factors have also increased the risk of asset impairment. Heightened uncertainty affects estimates of cash flows and discount rates and could also change which method of determining value in use is appropriate.

The session also enables participants to raise and discuss specific issues that they have identified or anticipate when applying IAS 36 in practice.

Learning Objectives

• Identify when impairment tests are required
• Measure the recoverable amount of an asset or a cash-generating unit
• Reflect impairment losses (and reversals of past losses) in the financial statements
• Draft relevant disclosures

Who Should Attend

• Accountants in finance and reporting teams that prepare IFRS financial statements
• External and internal auditors
• Financial and credit analysts seeking to improve their understanding of IFRS financial statements
• Accounting regulators and enforcement bodies

Topics

• Scope
• Identifying indicators of impairment
• Frequency of testing
• Measuring recoverable amount
  • Value in use – estimating cash flows and establishing discount rates: traditional and expected value approaches
  • Fair value less costs of disposal
• Impairment of goodwill
  • Cash-generating units
• Recognising losses
  • Subsequent reversals
• Disclosure

Teaching Method

• Live group internet instruction in virtual format by specialist instructor
• Description and explanation of IAS 36 requirements in clear and simple language
• Use of case studies and real-world examples to illustrate practical application
• Interactive participation is encouraged, with all attendees being required to be present on camera for the duration of the session
• All participants receive comprehensive electronic course notes, including presentation slides and handouts
• This virtual training is being delivered live and online in a session which runs from 13:00 – 17:00 London (UK).

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

Basic understanding of accounting under IFRS. No advance preparation is required for this course.