Are you sometimes struggling with certain requirements of IAS 36 “Impairment of assets”?

Most non-financial assets and certain financial assets not subject to IFRS 9 are within the scope of IAS 36 and require an impairment analysis either when there is an indication that the asset may be impaired or annually, when the asset has an indefinite useful life, is goodwill or is an asset under construction.

Determining the recoverable amount as part of the impairment analysis is not a straight-forward process and requires the use of significant estimates such as: pre-tax discount rate, assumptions within the budget/forecasts/business plans, long-term growth rate, working capital changes and capex, etc. We would expect that those significant estimates are disclosed in the notes to the financial statements within either or both sections “significant estimates” and “impairment”.

In addition, you may have challenges in understanding and the application of certain requirements such as:

• Determination of the cash generating unit (CGU) and more specifically changes in the organization and the impact on the CGU
• (Re)Allocation of goodwill over several CGU
• Using DCF to determine the value in use
• Pre-tax discount rate versus post-tax discount rate
• Restructuring and uncommitted capex
• Transfer pricing

We would like to help you better understanding the requirement of IAS 36 and the different application issues that you may or have encountered when applying IAS 36.

The objective of these webinars is to start with an update on the requirement on the one hand and then discuss several application issues in dept with a lot of examples. The webinars will be limited in time to allow you to combine this with your daily tasks and schedules. They are also free of charge.

Topics advanced 2 session:

• Determination of value-in-use by means of DCF models
• Pre-tax vs post-tax WACCs
• Restructuring and uncommitted capex application issues
• Transfer pricing application issues