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Chapter
28 /
Impairment ofAssets (l AS 36)
313
Practical Insight
Austria n Airlin es discl osed in its 2003 accounts that it had recogni zed an impairment loss
against its aircraft. Th e entity intended to dispose of its aircraft and had valued them at their
di sposal proceeds. Sub sequently the ent ity decid ed not to di spose of all of the airc raft, and the
recoverable amounts wer e mea sured at va lue- in-use . This result ed in a reversal of the impair–
ment loss of €5 1 million.
15.7
A reversal of an impairment loss for a cash-ge nerating unit shall be allocated to the ass ets of
that unit on a pro rata basis. Any impairment loss that relat es to goo dwill will not be reversed.
16.
DISCLOSURE REQUIREMENTS
16.1
For eac h class of asse t an entity sha ll disclose
(a) Imp airment losses recognized in the income sta tement
(b) Imp airment losses reversed in the income statement
(c) The line item in the income statement in whi ch the imp airment losse s are included
Additionally, any impairment losses recogni zed directl y in equity should be discl osed, including
reversals of imp airment losses.
16.2
Each segment should disclose these item s in term s of primary segments only: impairment
losses recogni zed and reversed in the period both in the income stateme nt and directly in equity.
16.3
If an indi vidual imp airment loss or reversal is materi al, then thi s informa tio n should be dis–
closed:
(a) Th e events and circum stances leadin g to the impairme nt loss
(b) Th e amount of the loss
(c)
If
it relates
to
an indiv idual asset, the nature of the asset and the segme nt to which it rel ates
(d) For a cas h-ge nerating unit , the description of the amount of the impairment loss or reversal
by class of assets and segme nt should be di scl osed .
(e) If the recove rable amount is fair value less costs to se ll, the basis for determining fair va lue
must be di sclosed.
(f)
If the recoverable amount is the valu e-in-use, the discount rate should be d isclosed.
16.4
If the impairment losses recognized or reversed are mat erial in relation to the financial state–
ment s as a whole, the ma in cla sses of asset s affec ted should be discl osed and the main events and
circumstances that lead to the recognition of those losses should be di sclosed .
16.5
Detailed information about the estimates used to measure the recoverabl e amo unts of the
cas h-generating units that contain goodw ill or intangi ble asset s with an indefin ite useful life should
also be set out.
17.
EXTRACTS FROM PUBLISHED FINANCIAL STATEMENTS
17.1
HOLCIM, Annual Report
2006
Notes to the Financial Statements
Accounting Policies
18.
Impairment of Assets
At each balance sheet date, the Group assesses whether there is any indication that an asset may be
impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss, if any.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group esti–
mates the recoverable amount of the smallest cash-generating unit to which the asset belongs.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carry–
ing amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable
amount. Impairment losses are recognized immediately in the income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset or cash–
generating unit is increased to the revised estimate of its recoverable amount. However, this increased