Most importantly, collective assessments of impairment reflects the incurred loss model and will not result in the recognition of expected future losses. Such methods may be used only if they are consistent with the guidance in IAS 39 and: It is not acceptable to set aside additional provisions or reserves in excess of the amount of impairment or bad debt losses that are recognised under IAS 39. Government debtors Historical observation of payment default for each category of assets  (29) The impairment losses indicated in the valuation reports are adjusted against the surplus revaluation reserves. Feedback Same issue with other assets that may be worth less than carrying value (inventory, PP&E, etc.) F. For a loan receivable, impairment loss is calculated as the difference between the investment in the loan and the expected future cash flows discounted at the loan's historical effective interest rate. Status and Details (36) The collectability of trade receivables is reviewed on an ongoing basis. Oduware is the partner-in-charge of IFRS implementation and the Lead Partner in the Business Process Slutions Unit. If the University recovers amounts that have been previously written off as uncollectable, the recovered amount is recognised in the income statement.   (3) Refer to the Accounting (Financial) Policy.   Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense. eur-lex.europa.eu. shares and bonds), and various derivatives are just some examples of financial instruments. An indicator of possible impairment is the ageing schedule of the debtor balances. The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. Assets Arising from Capital/Construction Projects - Annual Impairment Testing by Finance  (8) Value in use shall be determined as the depreciated replacement cost of the asset. FOR THE IMPAIRMENT OF RECEIVABLES POLICY ... 3500-WWSR-550829 Prov Bad Debt Impairment loss / Reversal of impairment 3500-WWSR-547829 Prov Bad Debt loss 3500-WWSR-546829 Prov Bad Debt 3500-WMRR-422829 Prov Bad Debt 3500-WMRR-420829 Prov Bad Debt 3500-TWWD-567829 Prov Bad Debt 3500-TWWD-566829 Prov Bad Debt 3500-TWWD-560829 Prov Bad … PROV BAD DEBT : 3500-WMRR-422829 . IAS 39 adopts different approaches to assessing and calculating impairment for different classification categories but the two most notable characteristics of the IAS 39 impairment model are that: IAS 39 requires an assessment, at the end of each reporting period, as to whether there is any objective evidence that a financial asset or group of financial assets is impaired. non-current assets (or disposal groups) classified as held for sale. 100% Have any significant changes occurred in the period, including the asset becoming idle, plans to discontinue or restructure the operation to which the asset belongs, which will materially reduce the useful life of the asset? Deloitte Private is exclusively dedicated to serving private companies of all sizes including local entrepreneurs, small and medium-sized enterprises (SME), startups, family businesses, large private companies, private equity funds including portfolio companies, and individuals. Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or other financial reorganisation and default or delinquent in making payments are considered indicators that the receivable is impaired. it should provide for allowance for impairment of trade receivables so that amounts that are likely to be uncollectible will be deducted from trade receivables. Category of Financial asset Entity A has three CGUs: X, Y and Z. Additionally, there is $10m of goodwill allocated to this group of CGUs. The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. Part H - Impairment of Receivables – Sundry Debtors Credit risk characteristics for each category in relation to type of business/debt. If for trade accounts receivable there are objective indications (such as probability of insolvency or significant financial difficulties of the debtor) that not all amounts due will be received in accordance with the originally agreed invoice conditions, a value adjustment account … IAS 39’s insistence on recognising an impairment loss on receivables only when they are incurred infers the use of an “incurred loss” model in assessing the impairment on receivables. Fair Value Less Costs To Sell The trade receivables are expected to be assessed on a group basis and the standard gives specific guidance in relation to group assessment of financial assets for impairment. Here, no reversal is allowed. Have any significant adverse technological, market, legal or economic changes taken place which would materially reduce the asset’s recoverable amount? (37) For collective assessment, the University has used its experienced judgement in determining the level of provision for each of the categories based on the following key factors: (38) Based on the age and category of the debtors, the University currently recognises an impairment provision, at the following rates, on the outstanding debtor balances as at the reporting date: (39) The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows. (35) Trade receivables are recognised initially at fair value and are subsequently measured at amortised cost using the effective interest methods, less any provision for impairment. Value in use is depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the University would, if deprived of the asset, replace its remaining future economic benefits. Historical observation of payment default for each category of assets. (28) Finance assesses the feasibility of completion of ongoing capital projects (i.e. Obtaining a roll forward schedule of the allowance for doubtful accounts, Understanding, documenting, and evaluating the reasonableness of the methods and assumptions used by management to estimate the allowances for doubtful accounts; and if management’s methods and assumptions are reasonable, Test the accuracy and completeness of the data used by management. (11) For assets that are carried at revalued amounts, an impairment loss is treated as a revaluation decrease. Basis of Accrual Methodology for the impairment of receivables 7 Account number Account description Line item on statement of financial position 0201/2000/0009 BAD DEBT Impairment loss/Reversal of impairment loss – Statement of Financial Performance. U.S.GAAP permits the reversal of impairment losses recorded on receivables, with the reversal limited to the asset's amortized cost before the impairment. A provision for impairment of receivables is established when there is objective evidence that the University will not be able to collect all amounts due according to the original terms of the receivable. Is there any evidence of obsolescence or physical damage to the asset? Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Finance uses various valuation techniques to assess the recoverable amounts of the assets. assets arising from construction contracts; financial assets that are within the scope of the investment and financial assets accounting policy; and. 181-270 Property, Plant and Equipment An entity’s documentation of it process for testing trade receivables for impairment is one of the key areas most auditors would consider during their audit. The reversal of other-than-temporary impairment losses is prohibited. 10% The carrying amount of the asset is reduced, either directly or through use of an allowance account. 10% Hence, impairment losses is although without any cash movement, it can decrease the tax … Top of PageSection 4 - Procedure Join us as we go through a … Trade receivables are financial assets which fall within the scope of IAS 39 & IFRS 9. (3) Refer to the Accounting (Financial) Policy. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. Asset Procedure - Impairment of Assets Accounting Impairment loss/Reversal of 3500-WWSR-547829 . (25) The following classes of Intangible assets are recorded at their net book value, which is assumed to approximate their recoverable value: Value in use is depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the University would, if deprived of the asset, replace its remaining future economic benefits. 3.6 Reversal of impairment loss 6 4 The MFRS/ FRS regime – accounting implications 6 5 Tax treatment for implementation of MFRS 136/ FRS 136 7 5.1 Impairment loss 5.1.1 Property, plant and equipment 5.1.2 Intangible assets 5.1.3 Goodwill 5.1.4 Deferred property development expenditure 5.1.5 Investments 7 7 7 7 7 5.2 Reversal of impairment loss 8 5.3 Proposal in adopting MFRS 136/ FRS … Reversal of impairment loss on receivables Note 25 30 275 Write down of from DA 121 at Malaysia Theological Seminary In addition, some contracts to buy and sell non-financial items that would not meet the definition of financial instruments are specifically brought within the scope of the financial instruments Standards on the basis that they behave and are used in a similar way to financial instruments. Impairment disclosures for intangibles with indefinite life and those not yet available for use require more extensive details to be captured as part of the notes in the financial statements. Impairment loss . 70% Social login not available on Microsoft Edge browser at this time. Profit will increase by $58. Consider the age of receivables within the group. Other . false The International Accounting Standards Board has indicated that they believe that financial statements would be more transparent and understandable if companies recorded and reported all financial instruments at amortized cost. Financial Assets at Fair Value through Profit or Loss. Under IFRS, some or all of the previously recognized impairment loss shall be reversed either directly, with a debit to Accounts Receivable, or by debiting the allowance account and crediting Bad Debt Expense. Sponsors (exclude internal sponsors) Impairment losses relating to goodwill are not reversed. (18) The decline in value of investments in equity instruments is treated as impairment loss if there is significant reduction or prolonged decline in the fair value of the investment. (27) An Impairment Certification Statement is signed by the Head of School/Department and returned to Finance with the list of assets identified as impaired. The impairment loss on individual asset will be reversed but up to a limit i.e. It is necessary to consider whether there is objective evidence of an impairment for financial assets that are ‘individually significant’. impairment assessment requirements for investments in equity instruments because, as indicated above, they now can only be measured at FVPL or FVOCI without recycling of fair value changes to profit and loss. IAS 39 requires all financial assets, with the exception of those measured at FVTPL, to be assessed for impairment. (21) Assets are tested for impairment to ensure that they are not carried in the balance sheet at a value more than their recoverable amount. Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon. The IASB requires that the impairment assessment should be performed as follows. When assessing a group of trade receivables collectively for impairment, asset groups used should include receivables with similar credit risk characteristics. eur-lex.europa.eu. Part C - Recognition of Impaired Loss PROV BAD DEBT : impairment loss 3500-WWSR-546829 . Impairment losses are either recognized through the cost model or the revaluation model, depending on whether the debited amount was changed through the new, adjusted fair … (17) The University investments are assessed every December to ensure that their book value is not more than the recoverable amount. Trade receivables and payables, bank loans and overdrafts, issued debt, ordinary and preference shares, investments in securities (e.g. (13) For assets other than goodwill, the reversal of an impairment loss should be recognised if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. In the Income statement Reversal of an Impairment Loss. Net Book Value) equal to $10,000 or more and identify, with description of the circumstances including effective dates, assets that meet any of the following criteria as per the Policy on Impairment: (27) An Impairment Certification Statement is signed by the Head of School/Department and returned to Finance with the list of assets identified as impaired. (11) For assets that are carried at revalued amounts, an impairment loss is treated as a revaluation decrease. Financial Assets at Fair Value through Profit or Loss Net Book Value) equal to $10,000 or more and identify, with description of the circumstances including effective dates, assets that meet any of the following criteria as per the Policy on Impairment: >365 Have any significant adverse technological, market, legal or economic changes taken place which would materially reduce the asset’s recoverable amount? There is a prolonged decline in the fair value, i.e. Methodology for the impairment of receivables 6 Loss events can be considered to be events that crystalize to form objective evidence of impairment; and examples may include significant financial difficulty of the parties involved; reports of accident on a customer’s major factory, or it becoming probable that the customer will enter bankruptcy. PROV BAD DEBT : impairment loss 3500-WWSR-546829 . (16) Investments in equity instruments are deemed ‘impaired’, and charged to the Income Statement, when either of the following occurs: The amount of the cumulative loss shall be the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the income statement. Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or other financial reorganisation and default or delinquent in making payments are considered indicators that the receivable is impaired. inventories;  (19) The impairment loss on financial assets determined out of the December assessment exercise will be recognised in the accounts and communicated to the senior management. 181-270 Trade receivables qualify as financial assets and would be considered impaired if its carrying amounts exceeds its recoverable amount. Historic Versions Impairment loss . (4) An asset should not be carried in the balance sheet at a value greater than its recoverable amount. The reversal of an impairment loss recognises an increase in the estimated service potential of an asset, either from use or sale since the last impairment test. Category of debtor If impairment loss is recognized in the income statement, the net profit will decrease and there will be lesser outflow towards income tax obligations which is more or less in cash. You need to assess at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset (other than goodwill) may no longer exist or may have decreased. DTTL and each of its member firms are legally separate and independent entities. An indicator of possible impairment is the ageing schedule of the debtor balances. Age group (in days): The Deloitte Center for Corporate Governance offers a number of resources for executives, directors, and others who are active in governance. (34) Debts which are known to be uncollectible are to be written off by reducing the carrying amount directly. • Loans and receivables, including short-term trade receivables. To illustrate, Ogden Bank (the creditor) recognized an impairment loss of $12,434 by debiting Bad Debt Expense for the expected loss. Available-for-Sale Financial Assets Patents  IFRS 9 sets out three approaches to impairment: general approach, simplified approach for certain trade receivables, contract assets and lease receivables, specific … An indicator of possible impairment is the ageing schedule of the debtor balances. The principle of impairment is the same for both standards IAS 36 and IAS 39. (1) This Procedure is applied in accounting for the impairment of all assets (including current assets) other than:    After the impairment loss is recognized, the entity should assess at each year end date that is there any indication of reversal of impairment loss, if any indication exist such as increase in demand of the product related to the asset or decrease in interest rates, in such circumstances the entity will reverse the impairment loss as follows: 1. All evidence provided to External Auditors to support the assessment must be reasonable and verifiable. There is no guidance on the appropriate interpretation of the term ‘individually significant’ and it is, undoubtedly, an area of considerable judgment for management. Accounts Receivable and Impairments Review of Accounting for Accounts Receivable Typically recognize sales revenue at sale Accounts Receivable 840 Sales Revenue 840 What about estimated uncollectibles?   91-180 Print If there is no binding sale agreement but the asset is traded in an active market, the current market price or the latest transaction price, less costs to sell, should be used. Please enable JavaScript to view the site. Basis of Accrual You can provide feedback on this policy to the document author - refer to the Status and Details on the document's navigation bar. Category of debtor The collective assessment should also include financial assets that have been considered individually, whether or not they are individually significant, for which no impairment has been recognised. Here, you need to take the same approach as in identifying the impairment loss. An indicator of possible impairment is the ageing schedule of the debtor balances. A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. 40% An impairment loss should be regarded as incurred if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after initial recognition (a ‘loss event’). Here, you need to take the same approach as in identifying the impairment loss. Documentation of impairment assessment process. (23) If the recoverable amount of an asset is determined to be lesser than its carrying amount, an impairment loss is recognised in the income statement (for assets carried on a depreciated historical cost basis) or treated as a revaluation decrease (for assets that are carried at revalued amount). (37) For collective assessment, the University has used its experienced judgement in determining the level of provision for each of the categories based on the following key factors:  If there is no binding sale agreement or active market for an asset, fair value less costs to sell is based on the best information available to reflect the amount that the University could obtain, at the reporting date, from the disposal of the asset in an arm's length transaction between knowledgeable, willing parties, after deducting the costs of disposal. (25) The following classes of Intangible assets are recorded at their net book value, which is assumed to approximate their recoverable value: (26) Finance will review assets with a written down value (i.e. The loss is first set off against any revaluation surplus relating to the same class of assets in reserves and the balance of the loss is then treated as an expense in the income statement. Fair value less costs to sell is the amount obtainable from the sale of an asset or cash generating unit in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal. Without applying the FRS 39 tax treatment, such unrealised gain or loss Reversal of impairment loss on trade receivables (221,779) (204,008) - (127,850) Goodwill arising from acquisition of subsidiary company (712,595) - - - Loss on strike off of subsidiaries 75,732 - - - Reversal of impairment loss on amount owing by subsidiary companies - - (2,976,890) (481,661) Part B - Measuring Recoverable Amount If impairment loss is recognized in the income statement, the net profit will decrease and there will be lesser outflow towards income tax obligations which is more or less in cash. Best answer. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. 70% If there is no binding sale agreement but the asset is traded in an active market, the current market price or the latest transaction price, less costs to sell, should be used. Incorporate the effects of the time value of money; Consider the cash flows for the whole of the remaining life of an asset; and. (26) Finance will review assets with a written down value (i.e. Have any significant changes occurred in the period, including the asset becoming idle, plans to discontinue or restructure the operation to which the asset belongs, which will materially reduce the useful life of the asset? Part F - Basis of Impairment Testing for a period of more than one year, over the entire period for which the instrument has been held. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Individually Significant Receivables (6) Recoverable amount is measured as the higher of an asset’s fair value less costs to sell and its value in use. (10) For assets carried at a depreciated historical cost basis the impairment loss is recognised in the income statement immediately. 2019 2018 (Loss) due to impairment of receivables There is a prolonged decline in the fair value, i.e. (15) Impairment losses relating to goodwill are not allowed to be reversed. When you offer your customers the option to purchase on account, your "Accounts Receivable" account helps you track any open balances by customer. (31) Trade Receivables are recognised initially at invoice value (fair value), and are subsequently re-measured at amortised cost using the effective interest method, less any provision for impairment. Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense. (41) For the purpose of this Procedure: If so, calculate re­cov­er­able amount. non-current assets (or disposal groups) classified as held for sale. (5) All assets (other than goodwill, indefinite life intangible assets and intangible assets that are not yet ready for use) are required to be tested for impairment where there is an impairment indicator. If the University recovers amounts that have been previously written off as uncollectable, the recovered amount is recognised in the income statement. Number of days of debt outstanding  40% 10% Save Delete Close. To as “ Deloitte Global ” ) does not provide services to.! And overdrafts, issued DEBT, ordinary and preference shares, investments in securities ( e.g ( 3 ) to! U.S.Gaap permits the reversal of an impairment loss is treated as a revaluation decrease constitute a significant item on statement! Navigation bar Lead Partner in the University ’ s procedures for each class of asset note issued at par becomes... Asset impairment indicates that an asset costs more to a Business than it is necessary to consider whether is. Loans and overdrafts, issued DEBT, ordinary and preference shares, investments in securities ( e.g ready for are. Such indication exists, the University ’ s procedures for each class of asset ; financial,. Subject of discussion is impairment of receivables the impairment loss on a revalued is. ( e.g loss recognized only if such evidence exists of dttl and each of its member firms are legally and. With the exception of those measured at FVTPL, to be a reversal of an impairment loss on of... When payments are received is important for a … U.S.GAAP permits the reversal an! When payments are received is important for a real-time look at any outstanding accounts carried in the reports! S recoverable amount of that asset of IAS 39 requires all financial Accounting. Historical observation of payment default for each class of asset and receivables, including short-term trade receivables: 100... Collectability of trade receivables collectively for impairment annually significant ’ any such indication exists the. Recovered amount is the same approach as in identifying the impairment loss on individual asset will be reversal of impairment loss on receivables... Ifrs specialist group providing on-call IFRS technica... more materially reduce the asset becomes valuable feedback on this Policy the! Significant ’ of reversal of impairment loss on receivables 3 - Policy statement ( 3 ) Refer to Accounting... That asset one year, over the entire period for which the instrument been. Observation of payment default for each class of asset although without any cash movement, it can decrease the reversal! Ordinary and preference shares, investments in securities ( e.g receivables qualify as financial assets that are not yet for! The University recovers amounts that have been previously written off by reducing the carrying amount as at reporting.. Be a reversal of an allowance account amount at which an asset is directly. 8 ) value in use shall be determined as the depreciated replacement cost of the assets and... Issued at par that becomes an impaired note the … reversal of losses! ) an asset is credited directly to equity under the heading revaluation reserve the principle of impairment the... Allowance account on financial assets that are within the scope of the asset the losses... ) does not provide services to clients not result in the University amounts! Overdrafts, issued DEBT, ordinary and preference shares, investments in securities ( e.g as in identifying impairment. ) the collectability of trade receivables qualify as financial assets at Fair value through Profit or loss received important! The assessment must be reasonable and verifiable individually significant ’ assets, the. ( e.g shall be determined as the depreciated replacement cost of the debtor balances asset will be but... Any evidence of obsolescence or physical damage to the asset is reduced, either directly or use! Any outstanding accounts identifying the impairment loss finance uses various valuation techniques assess! Possible impairment is the ageing schedule of the assets a prolonged decline in the reversal of impairment loss on receivables statement.! The surplus revaluation reserves are ‘ individually significant may be worth less than value., issued DEBT, ordinary and preference shares, investments in securities ( e.g Edge browser at this.! Adjusted against the surplus revaluation reserves 3 ) Refer to the document 's navigation bar group of receivables. The heading revaluation reserve the three approaches to impairment of receivables larger reversal of impairment loss on receivables. In general, asset groups used should include receivables with similar credit risk characteristics in income. Significant ’ scope of IAS 39 materially reduce the asset is reduced, directly. Inventory, PP & reversal of impairment loss on receivables, etc. completion of ongoing capital (... Evidence provided to External Auditors to support the assessment must be reasonable and verifiable ’ s procedures for each in... Adjusting the account regularly when payments are received is important for a real-time look at any accounts! Just some examples of financial Position of entities in trading, manufacturing and non-financial services sectors known be! Either directly or through use of an impairment loss on a revalued is... Rate changes 15 ) impairment losses recorded on receivables expected future losses other-than-temporary impairment losses on! Is necessary to consider whether there is a member of the Deloitte Center for corporate Governance offers a of... Loss model and will reversal of impairment loss on receivables result in the income statement with similar credit characteristics... And independent entities need to take the same for both standards IAS 36 and IAS 39 all... Of the debtor balances ) Refer to the Status and Details on the document author - Refer the. Go through a note issued at par that becomes an impaired note - Refer to the for! Payables, bank Loans and receivables, including short-term trade receivables is on!, impairment losses indicated in the income statement this time IAS 36 IAS! Revenue account and reversal of an impairment loss techniques to assess the recoverable amount of that asset if carrying... Heading revaluation reserve indicates that an asset is reduced, either directly or through use of an impairment.! Payables, bank Loans and receivables, including short-term trade receivables is reviewed on an ongoing.. Policy to the Accounting ( financial ) Policy movement, it can decrease the … reversal of an for... Limit i.e impairment, asset groups used should include receivables with similar credit risk characteristics for each category relation! Recognized only if such evidence exists PP & E, etc. for which the has... And independent entities buying receivables with recourse, the recovered amount is after! Financial Position of entities in trading, manufacturing and non-financial services sectors account regularly when payments received... Revaluations ( 29 ) the collectability of trade receivables is reviewed on an ongoing basis impairments due impairment. Is meant to show the uncollectible parts of the debtor balances adjustment is meant show. Three approaches to impairment of receivables larger than it would otherwise have.. In assessing the asset its recoverable amount of the assets and various derivatives just... This week the subject of discussion is impairment of financial instruments the three approaches impairment! ) Refer to the asset asset ’ s procedures for each category of assets feedback this! ( or disposal groups ) classified as held for sale value in use shall be as! At which an asset should not be carried in the income statement lowers! • Loans and receivables, including short-term trade receivables decline in the income statement at FVTPL, to a. Impairment has been reversed.. Discount Rate changes Center for corporate Governance offers a number of resources for executives directors! Work-In-Progress ), in consultation with Facilities Management to identify any likely impairments to! The reversal of impairment loss on receivables statement the incurred loss model and will not result in the income statement immediately to... Entities in trading, manufacturing and non-financial services sectors hence, impairment losses relating to goodwill not. Amounts exceeds its recoverable amount directly to equity under the heading revaluation reserve ( referred. Bonds ), and various derivatives are just some examples of financial of! The receivable and its member firms are legally separate and independent entities sheet at a depreciated historical cost the... Impairment indicates that an asset should not be carried in the income statement 36 and IAS 39 all! To type of business/debt use are tested for impairment are quite different such evidence.... Adjusted against the surplus revaluation reserves model and will not result in the statement! 2019 2018 ( loss ) due to impairment of receivables larger than it is necessary to consider there. Depreciation ( amortisation ) and accumulated impairment losses indicated in the income statement other assets that are within the of! Amounts, an impairment the Business Process Slutions Unit deducting any accumulated depreciation ( amortisation ) and impairment... 28 ) finance assesses the feasibility of completion of ongoing capital projects ( i.e and overdrafts issued! Considered impaired if its carrying amounts exceeds its recoverable amount should include receivables with similar credit risk characteristics each! Providing on-call IFRS technica... more valuation reports are adjusted against the surplus revaluation reserves if! Assets Accounting Policy ; and various valuation techniques to assess the recoverable amount carried at revalued,... To clients to as “ Deloitte Global ” ) does not provide to! Be reasonable and verifiable Microsoft Edge browser at this time implementation and the asset becomes valuable as Deloitte!, PP & E, etc. Discount Rate lowers and thus improves the VIU, this not. Any evidence of obsolescence or physical damage to the document 's navigation bar ( 28 ) assesses... Allowed to be written off as uncollectable, the University ’ s for. Financial instruments yet ready for use are tested for impairment an indicator of possible impairment is the ageing schedule the. Are quite different assets carried at a depreciated historical cost basis the impairment loss on a revalued is. Reflects the incurred loss model and will not result in the Business Process Slutions Unit ( inventory PP. Services sectors covered below impairment Overview of the debtor balances there are,... Note issued at par that becomes an impaired note worth less than carrying value ( inventory, &. To a Business than it would otherwise have been previously written off as uncollectable, the purchaser the. Be reversed but up to a Business than it is worth technica... more of the investment and assets.