Two of the standards covered in previous articles in this series, IAS 16 Property, Plant and Equipment, and IAS 38 Intangible Assets, require that impairment losses be reflected in the carrying value of assets. IAS 36 is the standard that specifies how an impaired asset would be identified, and how an impairment loss would be determined.

IAS 36 prescribes procedures to ensure that assets are carried at no more than their recoverable amount. The standard specifies when impairment losses are to be recognized and the conditions under which such losses should be reversed. IAS 36 also provides guidance on required disclosures.

IAS 36 Impairment of Assets — 2011

For a more comprehensive introduction to the adoption of IFRSs, see the online course, IAS 36/IAS 37. You must be registered to access and purchase the course.

Further resources on IFRS/IAS

Other IFRS/IAS articles and Professional Development Courses on PD Net