ACCA SBR IAS 36 Impairment of Assets

This is Steve Chen, FCCA. Recently I got a question from my student who is a financial manager in a large retail business.

The question is, can we apply the concept of 'recoverable amount' when determining whether inventories are impaired?

The quick answer is no as the recoverable amount is the concept in IAS 36 Impairment of assets - specifically to non-current assets rather than inventories. Inventories impairment should be accounted for under IAS 2 Inventories by applying the concept of net realisable value.

However, the NRV concept is different from the fair value per IFRS 13 Fair Value Measurement - as NRV would be based on the value/input from management (largely level three input per IFRS 13) whereas IFRS 13 requires level 1 and 2 input to be used before the level 3 input.

This photo was taken in 2021 when I sponsored Foshan University's students activities - About USD 3,000

11 views0 comments

Recent Posts

See All

The ACCA qualification has been there since the 1900s. After a decade of its inception, the ACCA had already become one of the most popular qualifications. Many students are attracted by its benefits.

If you are pursuing SBL ACCA or are new to the ACCA field, then this article will help you understand the way to prepare for the exams. Let us delve deeper into the topic: Useful tips to pass SBL ●

Habituate yourself with your study time Although working gives you an extra edge, nonetheless working and studying for ACCA at the same time can be an extremely tiresome job. When the exam comes up, t