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ARTICLE · 18 JANUARY 2021

Impairment Of Assets Under Ind AS 36: Brief Summary Of Applicability, Requirements And Methodology

Asit Mehta & Associates
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Ind-AS 36 was introduced as the Indian Accounting Standards equivalent for IAS 36 (IFRS), covering Impairment of Assets.

IndiaAccounting and Audit
Siddhant Kandoi
Siddhant Kandoi
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Ind-AS 36 was introduced as the Indian Accounting Standards equivalent for IAS 36 (IFRS), covering Impairment of Assets. Under the erstwhile Indian GAAP, very few companies in India carried out impairment testing; but with the introduction of Ind AS, it becomes much more relevant and widespread. In this article, we summarise the applicability, requirements and methodologies used in applying Ind AS 36, with a practical approach to impairment assessment and testing.

APPLICABILITY OF IND AS 36, IMPAIRMENT OF ASSETS

This standard must be applied in accounting for the impairment of all assets, unless they are specifically excluded from its scope. Assets to which IND AS 36 is commonly applied are:

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