ACCA P2 Impairments (IAS 36)

Comments

1. abdulahad92 says

   February 1, 2018 at 2:36 pm

   When does the impairment go to P/L anyway. Even in this example there is an allocation of the impairment figure to the hierarchy. My simple question, when does P/L comes to the picture?

   Regards

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   • Oluwatosin says

     February 20, 2018 at 5:20 pm

     The impairment to be expense in the p/l is 7200 While the allocation show the effects on the items in SFP

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2. ojss says

   May 26, 2017 at 9:45 pm

   Hi,

   why is the remaining balance of plant & equipment not included in the pro rata impairment of 3100 at the end?

   The question just says that some plant with a carrying value of 1200 is completely destroyed. To my opinion, this does not mean that the remainder is for sure worth 4000 and hence should be included in an overall impairment.

   Where is my mistake?

   Many thanks

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   • Natalia says

     June 22, 2017 at 3:46 pm

     I was thinking the same…. hmmm

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   • td4mee says

     August 31, 2017 at 9:52 pm

     Its not included simply because it has already been impaired to its correct value. I.e reduction by 1200, by pro rata’ing it, you’d be reducing it more than it should be.

     That’s why there is a hierarchy in regards to impairment. First any asset specifically impaired, and the balance would be its value and any remaining impairment to goodwill.

     If inpairment is yet to be allocated then this would be spread over all the assets not yet receiving impairment. Aka Buildings

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