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IAS 36 — Impairment of Assets

Effective date:

First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011 except for subsequent amendments.  Earlier application of Part I was permitted.

Published by the IASB:

March 2004

Included in Part I of CPA Canada Handbook:

January 2010

Reach out to our IAS 36 Specialist

Kerry Danyluk

Overview

IAS 36 Impairment of Assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. the higher of fair value less costs of disposal and value in use). With the exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an asset, and the test may be conducted for a "cash-generating unit" where an asset does not generate cash inflows that are largely independent of those from other assets.

History of IAS 36

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

January 2010

Part I of the CPA Canada Handbook issued

Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted.

January 2010

May 29, 2013

Amended by Recoverable Amount Disclosures for Non-Financial Assets (clarification of disclosures required)

 

The amendments more accurately reflect the IASB's previous decision to require:

  • the disclosure of the recoverable amount of impaired assets; and
  • additional disclosures about the measurement of the recoverable amount of impaired assets when the recoverable amount is based on fair value less costs of disposal, including the discount rate when a present value technique is used to measure the recoverable amount.

The amendments are effective for annual periods beginning on or after January 1, 2014. Earlier application is permitted if the amendments to IAS 36 and IFRS 13 Fair Value Measurement are applied at the same time.

September 2013

 Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

The above summary does not include details of consequential amendments made as the result of other projects.

Related Interpretations

Related IFRIC Agenda Rejection Notices

The rejection notices are available in our Deloitte Global section.

  • IFRS 10 & IFRS 11 — Transition provisions in respect of impairment, foreign exchange and borrowing costs (November 2013)
  • IAS 27 & IAS 28 — Impairment of investments in associates in separate financial statements (January 2013)
  • IAS 36 — Calculation of value in use (November 2010)
  • IFRS 8 — Interaction of transitional requirements with IAS 36 (March 2010)
  • IAS 36 — Identifying cash-generating units in the retail industry (March 2007)
  • IAS 36 — Impairment of undeveloped reserves by entities engaged in extractive activities (May 2004)
  • IAS 36 — Impairment of Assets (February 2003)

AcSB’s IFRS Discussion Group meetings

  • May 30, 2017 - IAS 36: Goodwill Impairment Test
  • May 31, 2016 - IAS 36: Recoverable Amount and Carrying Amount of a Cash-generating Unit
  • December 3, 2015 - IAS 36: Recoverable Amount and Carrying Amount of a Cash-generating Unit
  • May 14, 2015 - IAS 36: Recoverable Amount
  • December 9, 2014 - IAS 36: Allocating Corporate Costs to a Cash-generating Unit and IAS 36: Measuring Recoverable Amount and Allocating Impairment Loss and IFRS 5 and IAS 36: Impairment Measurement

Amendments under consideration

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