- This topic has 3 replies, 3 voices, and was last updated 11 years ago by
.
- Posts
dear sir,
this is about ias 36 impairment loss.we are aware that ias 36 does not apply to inventories right….but what if there is this cash generating unit which has a carrying amount of 1000.and in that cash generating unit,there is inventory.and the revised cash generating unit becomes 900.do we impair for inventory as well like pro rate the impairment of 100 to inventory based on its carrying amount.?But sir isnt it that we impair except the current assets and we only impair inventory if it is specifally damaged?
When looking at the cgu, we need first to consider individual assets within the cgu and consider them for impairment. Before we start pro-rata impairment, we should impair all those assets which are specifically individually impaired, but none of them to be impaired below recoverable amount
OK?
- You must be logged in to reply to this topic.