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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › indicator of impairment
dear tutor,
is increase in operating costs for any reason, an indicator of impairment, if so can you explain why?
Costs up = profit down = impairment indicator
But as always it’s a judgement call
so you mean sir a CGU/assets value in us will fall?
but even if i assume that value in use will fall, its not necessary that FV will fall too. And if FV is above carrying amount, then even if Value in use goes down, it won’t impair the asset.
Impairment indicator means that you should do impairment review.
It does not follow that RA will be less than CA – it depends on the forecasts