An asset's carrying amount is $250. Its fair value less costs of disposal is $150 and its value in use is $190.There is an impairment loss of?

Impairment is equal to carrying amount less the higher between (fv less cost to seLl or value in use)

By substitution, the equation is.

250 -190 =60

Impairment for that asset would be $60. According to IAS36 guidelines, the recoverable amount is HIGHER of fair value - selling cost and value in use. so the impairment will be250-190= $60.

yeah impaiment lost must be recognise in P&L ..

impairment occur when CV of asset > recovarable amount

while recovarable amount is heigher of Fair value less cost to sell or value in use

so value in use is heigher is190 we will comapre it CV which is250 ..

impaiment loss is=250-190 which is60

$100.

I agree with Mr. Mark

As per IAS36: Impairment of Assets, an asset is carried at no more than their recoverable amount.

The recoverable amount of an asset is the' higher of ' its " fair value less cost to sell " and its " value in use ".

$250- $190 = $60 will be the Impairment Loss

the answer is40$ value in user - fair value becuse i think the value in use are equal book value - depriciation then the loss = value in use - fair value

Impairment is the difference between the recoverable value and the carrying amount. Carrying amount represents the amount booked in books $250. Recoverable amount is higher of Realisable value =150$ (Net of expenses if asset is sold/ transferred) or Value in use =190$ (Remaining value of the asset if used in the business.) This is because, Asset s value is overstated and should be brought down to the level of actual useful life and value in order to enable the matching concept of revenue and cost

An asset is impaired if its recoverable value falls below the carrying value. The recoverable value is higher of two things:

1. Net realizable value (proceeds that can be received by selling the asset which in this case is $150)

2. Value in use ( inflows that can be earned by using the asset in the business which in this case is $190)

The recoverable value is $190 (higher) and as the the carrying value is $250. The impairment is carrying value less recoverable value which is $250-$190= $60