Section 3063 - Impairment of long-lived assets

Effective date:

January 1, 2011

Published by the AcSB:

December 2009

Reach out to our Section 3063 Specialist

Diana De Acetis


This Section establishes standards for the recognition, measurement and disclosure of the impairment of long-lived assets. This Section applies to long-lived assets held for use. It does not deal with long-lived assets to be disposed of (see Section 3475 Disposal of long-lived assets and discontinued operations).

Long-lived assets include property, plant and equipment, intangible assets with finite useful lives and long-term prepaid assets. This Section provides that a long-lived asset (or asset group) is tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if the carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposal. When the carrying amount of a long-lived asset is not recoverable and exceeds its fair value, an impairment loss is recognized. The impairment loss is measured as the excess of the carrying amount of the long-lived asset over its fair value. An impairment loss is not reversed if the fair value subsequently increases.

History of Section 3063




December 2009

Part II of the CPA Canada Handbook  issued

Effective for fiscal years beginning on or after January 1, 2011.

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


Private Enterprise Advisory Committee Meeting Notes

  • June 14, 2016 - 2017 Annual Improvements: Impairment – Allocation of an Impairment Loss

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