Recoverable amount

8 min · IAS 36
01 · Concept

An asset is impaired if its carrying amount exceeds its recoverable amount (higher of fair value less costs of disposal and value in use).

  • 01Test annually for goodwill and indefinite-life intangibles.
  • 02Other assets: test only when indicators exist.
  • 03Reversals allowed for all assets except goodwill.