The finance director cannot revalue the intangible as there is no active market, however the
discounted future cash flows would indicate that the intangible is not impaired.
How does Discounted future cash flows indicate no impairment? Can you please explain that part?
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Intangible asset , example 3
7y ago#1Hi,
The asset is impaired if its recoverable amount is below the carrying value. The recoverable amount is the higher of the FV and VIU. Given that there is a fair value demonstrated by the discounted future cash flows then I'd assume that this is higher than the carrying value and so there is no impairment.
Thanks
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