Impairment of assets - between regulation and deregulation

Ph.D. Professor Traian Nicolae ()
Additional contact information
Ph.D. Professor Traian Nicolae: Affiliation: Faculty of Economic Studies,University Ovidius Constantza, Romania

Ovidius University Annals, Economic Sciences Series, 2010, vol. X, issue 1, 1744-1749

Abstract: Objective of IAS 36 Impairment of assets is to prescribe procedures that apply to an undertaking to ensure that its assets are carried at amounts not exceeding their recoverable amount if the carrying amount is recoverable in full. An asset is carried at an amount not exceeding the amount will be recovered through its use or sale. If this case proves, is described as impaired assets and IAS 36 requires the company to account for a loss of value. Also, the rule specifies that a business case should include (lessen) a loss of value and should provide information on assets that have depreciated. There may be situations in which external influences or changes in production methods within the entity led to decreased value of an asset far more than is acknowledged in annual depreciation costs. In this case, it is said that the asset is impaired.

Keywords: Impairment; recoverable amount; value in use (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/rezumatemai2010.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:10:y:2010:i:1:p:1744-1749

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().