IAS36 Impariment 

All assets, except: inventories, contract assets and assets arising from costs to obtain or fulfill a contract, deferred tax assets, employee benefits, financial assets, investment property measured at fair value, biological assets, insurance contract assets, and non-current assets held for sale.

IMPAIRMENT = Carrying Amount > Recoverable Amount

RECOVERABLE AMOUNT = Higher of fair value less costs of disposal and value in use

Fair value less cost of disposal

Fair value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Costs of disposal

Incremental costs attributable to the disposal of an asset excluding finance costs and income tax expenses.

Value-in-use

Represents the discounted future net pre-tax cash flows from the continuing use and ultimate disposal of the asset.

Cash flows

 From continuing use and disposal

 Based on asset in its current form

 Exclude financing activities

 Pre-tax.

Discount rate

 Pre-tax

 Risks relating to value in use are reflected either in

future cash flows or in the discount rate. The

assumptions are otherwise double-counted.