DefinitionIntermediate
Under IFRS, how is an impairment loss on a property, plant, and equipment asset measured?
Under IFRS, an impairment loss on a property, plant, and equipment asset is measured as the excess of the carrying amount over the asset's recoverable amount.
Key points
- Impairment loss is the difference between carrying amount and recoverable amount.
- Recoverable amount is defined as the higher of fair value less costs to sell and value in use.
- IFRS requires regular reviews for impairment when events indicate that an asset may not be recoverable.
Source:International Financial Statement Analysis Workbook (CFA Institute ...· Introduction to Financial Statement Analysis· p. 74–82
Related questions
International Financial Statement Analysis Workbook (CFA Institute ...
Thomas R. Robinson;
Fourth Edition · John Wiley & Sons, Inc.