What IAS 36?

What IAS 38?

Overview.

IAS 38 Intangible Assets outlines the accounting requirements for intangible assets, which are non-monetary assets which are without physical substance and identifiable (either being separable or arising from contractual or other legal rights)..

What is a constructive obligation under IAS 37?

A constructive obligation arises if past practice creates a valid expectation on the part of a third party, for example, a retail store that has a long-standing policy of allowing customers to return merchandise within, say, a 30-day period. [ IAS 37.10]

How do you identify impairment loss?

A loss on impairment is recognized as a debit to Loss on Impairment (the difference between the new fair market value and current book value of the asset) and a credit to the asset. The loss will reduce income in the income statement and reduce total assets on the balance sheet.

What IFRS 9?

IFRS 9 Financial Instruments is the IASB’s replacement of IAS 39 Financial Instruments: Recognition and Measurement. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting.

What is impairment example?

Impairment in a person’s body structure or function, or mental functioning; examples of impairments include loss of a limb, loss of vision or memory loss. Activity limitation, such as difficulty seeing, hearing, walking, or problem solving.

How do you get impairment loss?

Once you know the carrying cost and recoverable amount of an asset, it’s easy to determine an impairment loss. All you need to do is subtract the recoverable amount from the carrying cost to determine the amount you can list as a loss. So using the previous example, subtract $500,000 from $750,000 to get $250,000.

Where does impairment go on the income statement?

Impairment is a non-cash expense that is reported under the operating expenses section of the income statement.

Why is impairment of goodwill not reversible?

IAS 36 specifically prohibits the reversals of any impairment losses recognized in previous period in respect of goodwill. … And as internal goodwill is not allowed to be recognised as asset therefore, no revaluation increase or decrease can be accounted for in relation to such goodwill.

Is IAS 36 still applicable?

IAS 36 was reissued in March 2004 and applies to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004, and for all other assets prospectively from the beginning of the first annual period beginning on or after 31 March 2004.

Has IAS 37 been replaced?

The IASB issued exposure drafts in 2005 and 2010 that would have replaced IAS 37 with a new IFRS or made significant revisions to IAS 37.

What are the 9 accounting standards?

Accounting Standard 9 (AS 9) is concerned with premises on the basis of which revenue is recognized in the statement of profit and loss of a business entity. This accounting standard deals with the recognition of revenue arising in the course of ordinary activities of the enterprise.

What is Fvtoci?

FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments. Under FVTOCI, changes in fair value are not reported as part of profit or loss (earnings) for the period. Instead they are reported as part of ‘other comprehensive income’.

When did IFRS 9 start?

On 24 July 2014, the IASB issued IFRS 9 Financial Insturments. This is the final version of the Standard and supersedes all previous versions. The Standard has a mandatory effective date for annual periods beginning on or after 1 January 2018, with earlier application permitted.

How is goodwill calculated?

To calculate goodwill, the fair value of the assets and liabilities of the acquired business is added to the fair value of business’ assets and liabilities. The excess of price over the fair value of net identifiable assets is called goodwill. Goodwill Calculation Example: Company X acquires company Y for $2 million.

What is IAS officer?

An IAS officer is given administrative command of an entire district as a District Collector. IAS officers also represent the Government of India at the international level in bilateral and multilateral negotiations.

What is the treatment of an impairment loss under IAS 36?

In this case, the impairment loss is treated as a revaluation decrease in accordance with the respective standard. If it is not possible to calculate the recoverable amount of an individual asset, then the recoverable amount of the CGU to which the asset belongs should be calculated.

Can you reverse impairment loss?

You can reverse an impairment loss only when there is a change in the estimates used to determine the asset’s recoverable amount. … The increased carrying amount due to reversal should not be more than what the depreciated historical cost would have been if the impairment had not been recognized.

What does IAS 16 say?

The objective of IAS 16 is to prescribe the accounting treatment for property, plant, and equipment. The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognised in relation to them.