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IAS 36 — Recoverable amount disclosures for non-financial assets

Background

The IASB, as a consequential amendment to IFRS 13 Fair Value Measurement, modified some of the disclosure requirements in IAS 36 Impairment of Assets regarding measurement of the recoverable amount of impaired assets. The amendments resulted from the IASB’s decision in December 2010 to require additional disclosures about the measurement of impaired assets (or a group of assets) with a recoverable amount based on fair value less costs of disposal.

However, one of the amendments made to IAS 36 potentially resulted in the disclosure requirements being broader than originally intended. Instead of requiring the disclosure of the recoverable amount of impaired assets, including goodwill, as intended, the amendment is perceived to require disclosure of the recoverable amount of any cash-generating unit (group of units) for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit (group of units) is significant in comparison with the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives.

This project is designed the clarify the disclosure requirements of IAS 36.

 

Current status of the project

This project was completed in 2013.  The IASB issued Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) on 29 May 2013. 

 

Project milestones

DateDevelopmentComments
December 2012 Narrow scope project added to the active agenda
18 January 2013 ED/2013/1 Recoverable Amount Disclosures for Non-Financial Assets published Comment deadline 19 March 2013
29 May 2013 Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36) published Effective for annual periods beginning on or after 1 January 2014

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