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For impairment how do you ascertain the current Market Price (recoverable amount) for the asset ?

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Question ajoutée par Nitin Gupta, ACA , FP&A , Rockwell Automation
Date de publication: 2013/11/08
Khalid Noor
par Khalid Noor , Accounting Manager , FedEx

For impairment of assets the recoverable amount is something different from from market price.

Recverable amount is the discounted cash flows which the assets can generate.

The current market value can be determined in the following ways;

 

1. Valuation of the exsiting asset by  a vlauer;

2. Current market price os similar asset in the markt less any depreciation allownce;

3. Current market price of the asset less any seeling cost etc.

 

In our casse the higher of recoverable amount and market price shall be taken for impairment purpose.

For more details refer IAS36