IAS 36 - Impairment of Assets
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 36 requires entities to assess at each reporting date whether assets may be impaired. If the recoverable amount is lower than the carrying amount, an impairment loss must be recognized.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IAS 36 - Impairment of Assets** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.