IAS 36 Impairment of Assets

Companies with substantial assets that may possibly subject to impairment, need to ensure that they fully comply with the disclosure requirements of IAS36 especially now that the financial crisis continues.

The aim of IAS 36, Impairment of Assets, is to ensure that assets are carried at a value which is no more than their recoverable amount.

According to IAS 36 provisions, if an asset's carrying value exceeds the amount that could be received through its use or its disposal, then the asset should be impaired so as its carrying value to reflect the economic benefits to be generated from that asset.

IAS 36 Impairment of Assets was issued by the International Accounting Standards Committee in June 1998.