Valuations

An impairment test determines whether the carrying amount of an asset on the balance sheet can be recovered through its use or sale. If its carrying amount exceeds its recoverable amount, an impairment loss is recognised. Generally, companies assess at the end of each reporting period whether there are indications of impairment. Additionally, certain assets, […]

An impairment test must be performed when there are indications that an asset may be worth less than its carrying amount on the balance sheet. Additionally, certain assets require annual impairment testing even when there are no indications of a loss in value. The specific requirements depend on whether the company applies International Financial Reporting […]