Advantages and disadvantages of IFRS 36

August 2022 | 9 pages | ID: AE26CE403AE1EN
Sadia Saeed

Abstracts

Impairment of assets is discussed in the International Financial Reporting Standards 36 which is issued at 2004. The main goal of this principle is to mention re techniques that a company implements to make sure that carrying amount of assets is not more than recoverable amount of its assets. When the carrying amount of assets is exceeded the recoverable amount of assets, the company is required to identify the impairment losses. When the recoverable amount of asset is less than carrying amount of assets, the process of recognizing the impairment loss should be done. International Financial Reporting Standards 36 is an important standard for checking the accurate carrying amount of assets (IAS 36, 2009).

First of all, the company is required to examine the assets after completion of financial year. The company checks whether there is a sign that a property can be damaged. If a company finds. continued (wordcount of report: 1500 words)

Contents

Introduction
Advantages and disadvantages of IFRS 36 for Investors
Advantages
Timely and accurate information
Managerial capabilities
Additional information in the monetary statements as compared to historical cost
Indications of business failures
Disadvantages
Difficulties
Allocation of goodwill
Limited information
Enhanced impairment charges
References