Essay on impairment

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Essay on impairment in 2021

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How is the reversal of an impairment loss treated?

The Para 119 of the AASB 136 states that the reversal in the impairment loss other the goodwill should be recognized immediately in the statement of the profit or loss. In case of revalued assets, the reversal in the impairment loss should be treated against the revalued amount.

How is impairment loss adjusted in AASB 136?

It should be noted that as per Para 63 after the recognition of the impairment loss then the depreciation charge is adjusted so that the revised carrying amount can be allocated to the remaining useful life of the assets. The Para 110 to 116 of the AASB 136 provides the requirement relating to the reversal of the impairment loss.

How is the recoverable amount of an impairment loss determined?

The Para 6 of the standard defines Impairment loss as the amount by which the recoverable amount is lower than the carrying amount of the assets. The recoverable amount is determined by comparing the value in use with the fair value after deducting the cost to sell.

When does a person have a visual impairment?

This means that this person cannot see at 20 feet the things other people see at 200 feet or they have a side vision that is not more than a diameter of twenty degrees or a radius of ten degrees. An individual is regarded as visual impairment when the corrected vision is not recovered to more than 20 out of 70 (Kim et al., 2016).

Last Update: Oct 2021


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