Other accounting standards - part 1
Taught by James Griffiths · AI tutor support included
Understanding IAS 36 is essential for accurate financial reporting of non-current assets. This lesson covers impairment accounting, including how to identify when assets lose value, calculate recoverable amounts, and record appropriate adjustments to reflect true asset values in financial statements. You'll master the distinction between value in use and fair value less selling costs, along with practical guidance on impairment indicators and treatment of previously revalued assets.
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In this lesson
- 0:00 Introduction to Accounting Standards
- 1:10 Defining IAS 36: Impairment
- 2:03 Understanding Carrying Amount
- 2:46 Recoverable Amount Explained
- 3:15 Value in Use vs. Fair Value Less Selling Costs
- 4:39 Frequency and Indicators of Impairment
- 6:57 Accounting Treatment of an Impairment
- 8:27 Special Case: Previously Revalued Assets
About this lesson
Dive deep into the complexities of IAS 36 and learn the intricacies of accounting for impairment, a crucial aspect for financial accuracy. This video meticulously unravels the definition, calculation, and implications of asset impairment in financial reporting, focusing on non-current assets and their recoverable amount versus carrying value. Discover practical insights on identifying impairment indicators, both internal and external, and the consequential accounting treatment that ensures your financial statements reflect true asset value. Perfect for professionals seeking to enhance their financial reporting skills, this video is an essential tool for accurately assessing and recording asset impairments.
Duration: 9m
- IAS 36 Impairment of Assets
- Carrying Amount vs. Recoverable Amount
- Value in Use and Fair Value Less Selling Costs
- Internal and External Impairment Indicators
- Impairment Loss Calculation and Recognition
- Treatment of Previously Revalued Assets
Transcript
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