impairment

1 IMPAIRMENT OF ASSETS Objective of PAS 36 The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable... More

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IMPAIRMENT OF ASSETS
Objective of PAS 36
The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its
assets are carried at no more than their recoverable amount. An asset is carried at more than its
recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the
asset. If this is the case, the asset is described as impaired and the Standard requires the entity to
recognize an impairment loss. The Standard also specifies when an entity should reverse an impairment
loss and prescribes disclosures.
Definitions
An active market is a market in which all the following conditions exist:
(a) The items traded within the market are homogeneous;
(b) Willing buyers and sellers can normally be found at any time; and
(c) Prices are available to the public.
The agreement date for a business combination is the date that a substantive agreement between the
combining parties is reached and, in the case of publicly list Less