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What is impairment of assets? and its rational behind .

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › What is impairment of assets? and its rational behind .

  • This topic has 0 replies, 1 voice, and was last updated 11 years ago by VitasLoh.
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  • May 25, 2014 at 9:48 am #170604
    VitasLoh
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    • Topics: 4
    • Replies: 3
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    I would be grateful when receiving your sooner reply.
    Impairment of an asset, is the recoverable amount compare with its carrying amount.
    If the carrying amount is higher than the recoverable amount, then the asset is impaired.
    What is the rational behind it, which that we should choose the higher amount between the recoverable amount and carrying amount ?

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