IAS 36 Impairment of Assets

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  • čas přidán 19. 06. 2019
  • In this session, I cover IAS 36 impairment of assets. IAS 36 is covered in international accounting and ACCA exam. IAS 36 Impairment of Assets sets out requirements for impairment which cover a range of assets (and groups of assets, termed 'cash generating units' or CGUs). The core underlying principle of IAS 36 Impairment of Assets is that an asset’s carrying value in the financial statements of the company should not exceed the highest amount the business can recover through its use or sale.
    ✔️Accounting students and CPA Exam candidates, check my website for additional resources: farhatlectures.com/
    📧Connect with me on social media: linktr.ee/farhatlectures
    #CPAEXAM #ACCA #accountingstudent
    The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired. The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. IAS 36 also applies to groups of assets that do not generate cash flows individually (known as cash-generating units).
    IAS 36 applies to all assets except those for which other Standards address impairment. The exceptions include inventories, deferred tax assets, assets arising from employee benefits, financial assets within the scope of IFRS 9, investment property measured at fair value, biological assets within the scope of IAS 41, some assets arising from insurance contracts, and non-current assets held for sale.
    The recoverable amount of the following assets in the scope of IAS 36 must be assessed each year: intangible assets with indefinite useful lives; intangible assets not yet available for use; and goodwill acquired in a business combination. The recoverable amount of other assets is assessed only when there is an indication that the asset may be impaired. Recoverable amount is the higher of (a) fair value less costs to sell and (b) value in use.
    Fair value less costs to sell is the arm’s length sale price between knowledgeable willing parties less costs of disposal.
    My website: farhatlectures.com/
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Komentáře • 51

  • @jessicaling2109
    @jessicaling2109 Před 4 lety +2

    going to take my cpa board in the philippines in october. your financial accounting videos are great help in refreshing concepts.

  • @umairirfan9284
    @umairirfan9284 Před 4 lety +9

    JazakAllah Sir Farhat, your lectures really helped me in gaining an insight of ias-36, may Almighty bless you.

    • @AccountingLectures
      @AccountingLectures  Před 4 lety +2

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
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      ✔ Linkedin: www.linkedin.com/in/professorfarhat/
      ✔Facebook:@accountinglectures
      ✔Twitter: @farhatlectures
      🎤Email: Mansour.farhat@gmail.com

  • @rachinderkaurmatharu3685

    Very well explained. So easy to under. Thanks

  • @jumalenanyokie9522
    @jumalenanyokie9522 Před rokem +1

    I have really understood impairment very well. Thank you for well detailed explanation

    • @AccountingLectures
      @AccountingLectures  Před rokem

      Glad to hear that! Thank you and please visit the website for more farhatlectures.com/

  • @adazhang1579
    @adazhang1579 Před 3 lety +3

    Best lectures on CZcams, very clear, and in-depth. thank you!

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
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      🎤Email: Mansour.farhat@gmail.com

  • @imranmushtaq7445
    @imranmushtaq7445 Před 4 lety +2

    Jazak 'Allah
    Mr Farhat you really explained in elaborate way and with good practical examples

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share.
      If you want to access more resources, check my website: farhatlectures.pathwright.com/library/
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      Email: Mansour.farhat@gmail.com

  • @anandkhangarot8694
    @anandkhangarot8694 Před 5 lety

    Thanks Farhat for quick revision of this IAS.

    • @AccountingLectures
      @AccountingLectures  Před 5 lety

      You are welcome. Please subscribe and share the channel on
      social media.
      Please connect with me:
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  • @pritamlaskar7265
    @pritamlaskar7265 Před 2 lety +1

    Nowadays I skip my university accounting classes cause I don't understand anything there. In place, I go through your videos which are very simple and easy to understand. Thank you so much! I have got semester exams in two weeks and your videos are truly helping me.

    • @AccountingLectures
      @AccountingLectures  Před 2 lety +1

      Happy to help! Please take a look at my additional resources: farhatlectures.pathwright.com/dashboard/

  • @zulfiqardurrani3483
    @zulfiqardurrani3483 Před 2 lety +1

    Ur the best lecturer of CPA,salute to u sir...

  • @mohamedmorsy9426
    @mohamedmorsy9426 Před 3 lety +2

    This is a concise and comprehensive explanation which helps a lot! Thank you for that!!
    I have one question, what if the reversal amount was higher than the initial impairment loss, would we consider the remaining in OCI or income statement?

  • @nobelnoel8718
    @nobelnoel8718 Před rokem +1

    I learned so much in this video rather than listening to our teacher's 2 hour lecture. Thanks!

    • @AccountingLectures
      @AccountingLectures  Před rokem

      Thank you. Please check my website for more: ✅farhatlectures.com/

  • @malikbasitawan3820
    @malikbasitawan3820 Před 4 lety +2

    Jazakallah sir.. It helped me out so much... i am really thankful to u..

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
      ✔Instagram: @farhatlectures
      ✔ Linkedin: www.linkedin.com/in/professorfarhat/
      ✔Facebook:@accountinglectures
      ✔Twitter: @farhatlectures
      🎤Email: Mansour.farhat@gmail.com

  • @rayomer9261
    @rayomer9261 Před rokem

    Tysm!

  • @treasureee6425
    @treasureee6425 Před 5 lety

    Thanks Prof. very clear and understood

    • @AccountingLectures
      @AccountingLectures  Před 5 lety

      You are welcome. Please subscribe and share the channel on
      social media.
      Please connect with me:
      Instagram: instagram.com/farhatlectures/
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      Facebook: facebook.com/accountinglectures

  • @nornoramramr2758
    @nornoramramr2758 Před 3 lety +1

    God bless you Mr. Farhat

    • @AccountingLectures
      @AccountingLectures  Před 2 lety

      Thank you. Here's my international accounting course: farhatlectures.pathwright.com/library/international-accounting-ifrs/about/

  • @ibrahimjalal4606
    @ibrahimjalal4606 Před 4 lety +1

    i benefited a lot from this lecture thanks

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
      ✔Instagram: @farhatlectures
      ✔ Linkedin: www.linkedin.com/in/professorfarhat/
      ✔Facebook:@accountinglectures
      ✔Twitter: @farhatlectures
      🎤Email: Mansour.farhat@gmail.com

  • @justinelicuanan2874
    @justinelicuanan2874 Před 3 lety +1

    Thank you for this video sir!

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      You are welcome.
      Check my website for more:
      ✔farhatlectures.com/
      ✔Instagram: @farhatlectures
      ✔ Linkedin: www.linkedin.com/in/professorfarhat/
      ✔Facebook:@accountinglectures
      ✔Twitter: @farhatlectures
      🎤Email: Mansour.farhat@gmail.com

  • @accountsfundamentals7430

    Wonderful teaching ❤

    • @AccountingLectures
      @AccountingLectures  Před rokem

      Please take a look at my website for additional resources: farhatlectures.com/

  • @ahmedrifayi8257
    @ahmedrifayi8257 Před rokem +1

    Very well explained, Thank you so much

  • @ErniSusanty
    @ErniSusanty Před 4 lety +1

    in the video of 9:55, you mention about approved budget and should cover a maximum of "five years" ; does this "five years" only your estimation based on your experience? or it is written in the IAS 36 rule? thanks before....

  • @e.b2036
    @e.b2036 Před 2 lety +1

    Great lecture

  • @waikiki4033
    @waikiki4033 Před 5 lety +1

    Hello prof. Farhat
    Nice job preparing this lecture - everything was really clear. Altough i feel like it lacks information about goodwill and differences between accounting goodwill against rest of assets and CGU.
    If you ever decide to lecture that topic I'd be very greatful.
    Sincerelly

    • @AccountingLectures
      @AccountingLectures  Před 5 lety +1

      Did you check my intermediate accounting lessons? Chapter 12?
      czcams.com/video/F1dnky5d8po/video.html

  • @giorgilobjanidze8297
    @giorgilobjanidze8297 Před 3 lety +1

    Greate lecture like others

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      Thank you. Please take a look at my website for additional resources: www.farhatlectures.com

  • @RVC0902
    @RVC0902 Před 2 lety +1

    Thank you!

  • @zeto9milan
    @zeto9milan Před rokem

    what happens with the extra $25000 since in theory the new book value of the equipment is $900000 which is above $8750000. for reference min 22:37

  • @sudiptoroy4057
    @sudiptoroy4057 Před 2 lety +1

    Sir what is the difference between impairment and revaluation

  • @kinzasatti3417
    @kinzasatti3417 Před 3 lety +1

    wow sir...respect from Pakistan. Hats off

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      You are welcome.
      Check my website for more:
      ✔farhatlectures.com/
      ✔Instagram: @farhatlectures
      ✔ Linkedin: www.linkedin.com/in/professorfarhat/
      ✔Facebook:@accountinglectures
      ✔Twitter: @farhatlectures
      🎤Email: Mansour.farhat@gmail.com

  • @tarkeshpatro2996
    @tarkeshpatro2996 Před rokem

    Hi Sir
    How the increase in interest rate requires us to impair an asset, I am not able to connect this ?

  • @FBeckenbauer4
    @FBeckenbauer4 Před rokem

    Wouldn't it still make sense to record a revaluation gain of $25k to bring the Asset up to $900k, it's true value. We're trying to show our most accurate figures on statements, as is we're just fixing a previous error without giving a true reflection of our Assets.

  • @thebeastfunnycorner3158

    Great lessons, but you need make it a bit slow to understand

  • @clementlee2967
    @clementlee2967 Před 3 lety

    Amazing, but the accent got me rewinding 5second back again and again haha.