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meyer cohn
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meyer cohn
Created by meyer cohn over 9 years ago
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Impairment ofassetsRecoverableamount: Higherof FV/ value inuseFair value less cost ofdisposalValue in Use: PV of futureCFj from asset/CGU; Incl.CFj from cont. use &disposal at endImpairment lossAmount by which CA ofasset exceedrecoverable amountRecognition &MeasuringIndividual assetsCost model - Recogn. loss in P/L;Revaluation model: 1st reverserevaluation then recogn left over in P/LCash-generating Unit(CGU)1. Allocate to goodwil; 2. Prorata to rest of assets; 3.LIMIT - CA of asset notreduced below higher of: - FVless selling cost; -Value in useReversalCost model - Recogn. in P/L; Revaluationmodel - Recogn. as revaluation increase; Losson GOODWILL not reversed; LIMIT -Increased CA may not exceed CA withoutimpairment.Value in UseDiscount rate =PRE-TAX rateDouble click this nodeto edit the textClick and drag this buttonto create a new node