Making Sense of a Complex World: IAS 36 Impairment of Assets

 

Impairment is high on the agenda for companies across all industry sectors. According to recent PwC analysis, the telecommunications industry has by far the largest average balances for total intangible assets and for goodwill. As our clients approach the financial year end, many are interested in how IAS 36 applies to their business.

 

This paper aims to introduce the relevant IFRS pronouncements, examine the procedures required when conducting impairment tests (particularly in relation to goodwill) and explain the major financial statement disclosures related to impairment testing.