IAS 36 also applies to groups of assets that do not generate cash flows individually (known as cash-generating units). If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its recoverable amount. Unless it is tested on a standalone basis, an ROU asset is tested in combination with other assets in a Cash Generating Unit (CGU). With clients demanding excellent service delivery as well as value for... BDO’s global real estate and construction team is available to collaborate with you, wherever you do business. UK Accounting Standards. Please read our. 2. IFRS 16 and IAS 36. Singapore Financial Reporting Standards (International) Effective for annual reporting period beginning on 1 January 2019 SFRS(I)s comprise Standards and Interpretations that are equivalent to International Financial Reporting Standards (IFRS Standards) issued by … BDO LLP (UEN: T10LL0001F) is an accounting Limited Liability Partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A). Volume B - UK Reporting - FRS 102 Model annual report and financial statements for UK unlisted groups - FRS 102. By using this site you agree to our use of cookies. View Notes - Impairment of Assets FRS 136 from BUSINESS 78 at Asia Pacific University of Technology and Innovation. IAS 36 Impairment of Assets contains a number of examples of internal and external events which may indicate the impairment of an asset. A: An unexpected fall in the market value of one or more assets. Subscribe to receive the latest BDO News and Insights. We combine our extensive knowledge of this sector with an in-depth understanding of your goals and vision, so we can help you to achieve them in the... Impairment Implications of COVID-19 (IAS Impairment of Assets), Original content provided by BDO International, Technology, Life Sciences, Media & Entertainment, Telecommunications. This course allows participants to explore FRS 36 Impairment of Assets in detail and understand the key issues in discounted cash flow computation through the use of case studies. By NG ENG JUAN. The BDO Bulletin focuses on the financial reporting implications in relation to the impairment requirement of FRS/IAS 36, which applies to most non-financial assets. A good understanding of FRS 36: Impairment of Assets: requirements is vital in achieving an appropriate measurement of non-financial assets on the financial statements, especially given the increased volatility in the current market conditions. Section 27 makes it clear that impairment losses should be recognised in the profit and loss account unless it relates to a revalued asset, in which case it will go to the revaluation reserve first. We enable you to meet the many challenges of international expansion, avoiding the hazards while seizing those short-lived opportunities. SFRS For Small Entities . An entity that is not a first-time adopter shall apply those. Please free to reach out to us if you would like to know how we can assist you. 20 Journal of Law and Financial Mangement - Volume 7, No.1 Khairi Under the new standards, there are three significant impacts on the treatment of goodwill. Increasing competition. Programme Outline Introduction Financial assets are classified according to their contractual cash flow characteristics and the IAS 36, 'Impairment of assets' or FRS 102 Section 27 requires management to consider at each report date whether there is any indication that an asset may be impaired. Our best-in-class people utilise the resources and global footprint of our cross-border network to give you key audit, tax, and... Just as technology rapidly evolves, so too does the sector. An intangible asset with an indefinite useful life should not be amortised. This course allows participants to explore the practical issues in relation to audit of FRS 36 Impairment of Assets in greater detail and how to overcome them. the higher of fair value less costs of disposal and value in use). In this Standard, paragraphs with a prefix ‘IFRS’ refer to effective date, transition provisions and/or, other text that are extracted from IFRSs. Deloitte Guidance. 31 December 2017 that are applicable for annual reporting period beginning on 1 January 2018. The BDO Bulletin focuses on the financial reporting implications in relation to the impairment requirement of FRS/IAS 36, which applies to most non-financial assets. SFRS(I) 1-8, Changes in Accounting Estimates and Errors, provides a basis for selecting and applying accounting. The aim of IAS 36, Impairment of Assets, is to ensure that assets are carried at no more than their recoverable amount. 1. Impairment of Assets.pdf - SINGAPORE FINANCIAL REPORTING STANDARDS(INTERNATIONAL SFRS(I 1-36 Impairment of Assets This Standard is applicable for annual, This Standard is applicable for annual reporting period beginning on, SINGAPORE FINANCIAL REPORTING STANDARD (INTERNATIONAL) 1-36, IDENTIFYING AN ASSET THAT MAY BE IMPAIRED, Measuring the recoverable amount of an intangible asset with an, RECOGNISING AND MEASURING AN IMPAIRMENT LOSS, Identifying the cash-generating unit to which an asset belongs, Recoverable amount and carrying amount of a cash-generating unit, Impairment loss for a cash-generating unit, Reversing an impairment loss for an individual asset, Reversing an impairment loss for a cash-generating unit, Reversing an impairment loss for goodwill, Estimates used to measure recoverable amounts of cash-generating units, containing goodwill or intangible assets with indefinite useful lives, Using present value techniques to measure value in use, Impairment testing cash-generating units with goodwill and non-, NON-MANDATORY IFRS TEXT EXCLUDED FROM SFRS(I) 1-36, Singapore Financial Reporting Standard (International) 1-36, C. All the paragraphs have equal authority. that are specific to SFRS(I)s are indicated with a prefix ‘SG’. IFRS Standards. Introduction ; Identifying assets that may be impaired; Identifying cash-generating units; Impairment assessment of goodwill; Measuring recoverable amount: ‘fair value less costs of … The Standard also defines when an asset is impaired, how to recognize an impairment loss, when an entity should reverse this loss and what information related to impairment should be disclosed in the financial statements. Practice Statements. The COVID-19 outbreak brought significant impact on businesses and posed challenges to financial reporting, especially on the impairment assessment of non-financial assets. To gain a better understanding of the characteristics of the goodwill reporting regime, developing an understanding of the level of compliance and quality disclosures related to determining the recoverable amount of the CGUs are matters of … International Financial Reporting Bulletin. The asset should also be assessed for impairment in accordance with IAS 36. This publication focuses on compliance with FRS. In recent years, manufacturers have developed their position to cope with the threats from low cost emerging countries and they now aspire to provide excellent service, supported by extensive R&D and innovation. Programme Outline . • FRS 109 does not include a definition for “default”; instead, corporates need to define “default” in the context of their specific types of assets. For further resources on applying the requirements of IAS 36 and other IFRSs, please refer to BDO resources such as IFRS In Practice publications and online training, which are available on BDO’s IFRS Reporting Hub . Singapore Illustrative Financial Statements Year ended 31 December 2017 . The first volume of SFRS(I)s contains the equivalent of the consolidated text of International Financial, Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) at. We focus our full suite of core services on the needs of... Changing regulations. Changes effective for annual periods beginning after 1 January 2020. Changes effective for annual periods beginning after 1 January 2020. 6% )56 &217(176 iurp sdudjudsk 2%-(&7,9( 6&23( '(),1,7,216 ,'(17,)<,1* $1 $66(7 7+$7 0$< %( ,03$,5(' 0($685,1* 5(&29(5$%/( $02817 SFRS(I) 1-36 4 Singapore Financial Reporting Standard (International) 1-36 Impairment of Assets (SFRS(I) 1-36) is set out in paragraphs 1 – 141 and Appendices A – C. All the paragraphs have equal authority. The purpose of this article is to discuss the appropriateness of the above provision of IAS 36. SFRS(I), 1-36 should be read in the context of its objective, the, Conceptual Framework for Financial Reporting, Conclusions on International Financial Reporting Standards. If an asset's carrying value exceeds the amount that could be received through use or selling the asset, then the asset is impaired and the standard requires a company to make provision for the impairment loss. Life should not be amortised life should not be amortised you with a more responsive and personalised.... 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