We enable you to meet the many challenges of international expansion, avoiding the hazards while seizing those short-lived opportunities. Section 27 makes it clear that impairment losses should be recognised in the profit and loss account unless it relates to a revalued asset, in which case it will go to the revaluation reserve first. The objective of IAS 36 Impairment of assets is to make sure that entity’s assets are carried at no more than their recoverable amount. 2. View S214 Impairment of Assets (Facilitator) - AY revised 2017 (V3).pptx from ACC MISC at National University of Singapore. The BDO Bulletin focuses on the financial reporting implications in relation to the impairment requirement of FRS/IAS 36, which applies to most non-financial assets. BDO LLP (UEN: T10LL0001F) is an accounting Limited Liability Partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A). Impairment is calculated as the expected loss over the next 12 months for the existing financial assets. In contrast under FRS 11 the impairment loss was set against intangibles first and then finally against other assets on a pro-rata basis. IAS 36, 'Impairment of assets' and FRS 102 Section 27. If an asset's carrying value exceeds the amount that could be received through use or selling the asset, then the asset is impaired and the standard requires a company to make provision for the impairment loss. Financial assets are classified according to their contractual cash flow characteristics and the The COVID-19 outbreak brought significant impact on businesses and posed challenges to financial reporting, especially on the impairment assessment of non-financial assets. SFRS(I) 1-8, Changes in Accounting Estimates and Errors, provides a basis for selecting and applying accounting. FRS 36, Impairment of Assets, provides the standards for review of carrying amount of an asset, determination of recoverable amount of an asset and recognition or reversal of an impairment loss. The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. Speed, responsiveness and flexibility can be make-or-break for a company at any stage of its lifecycle, especially when moving into new territories. Financial Reporting Standards. This standard eliminates goodwill amortization, requiring instead that goodwill be evaluated for possible impairment. An intangible asset with an indefinite useful life should not be amortised. SFRS For Small Entities . The financial services industry is under pressure in several key ways. This preview shows page 1 - 6 out of 46 pages. This site uses cookies to provide you with a more responsive and personalised service. This course allows participants to explore FRS 36 Impairment of Assets in detail and understand the key issues in discounted cash flow computation through the use of case studies. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For further resources on applying the requirements of IAS 36 and other IFRSs, please refer to BDO resources such as IFRS In Practice publications and online training, which are available on BDO’s IFRS Reporting Hub . FRS 109 which replaces FRS 39, includes guidance on (i) the classification and measurement of financial assets and financial liabilities; (ii) impairment requirements for financial assets; and (iii) general hedge accounting. 1. (b) to all other assets, for annual periods beginning on or after 1 January 2005. Programme Outline . IAS 36, 'Impairment of assets' or FRS 102 Section 27 requires management to consider at each report date whether there is any indication that an asset may be impaired. IFRS Standards. By NG ENG JUAN. IAS 36 Impairment of Assets (the standard) sets out the procedures that entities must apply to ensure that their assets are carried at no more than the amounts expected to be recovered through the use or sale of the assets. There are more than 40 Financial Reporting Standards (FRS) issued in Singapore. Accounting Standards . IAS 36, Impairment of Assets IFRS 9, Financial Instruments Goodwill; Intangible assets; debt instruments classified at fair value through Property, plant and equipment; Right-of-use assets; Associates and joint ventures accounted for under the equity method; Investment properties not measured at fair value; and Costs to obtain or fulfil a contract recognised in accordance with IFRS 15, … the higher of fair value less costs of disposal and value in use). • FRS 109 does not include a definition for “default”; instead, corporates need to define “default” in the context of their specific types of assets. 6% )56 &217(176 iurp sdudjudsk 2%-(&7,9( 6&23( '(),1,7,216 ,'(17,)<,1* $1 $66(7 7+$7 0$< %( ,03$,5(' 0($685,1* 5(&29(5$%/( $02817 Changes effective for annual periods beginning after 1 January 2020. Practice Statements. A: An unexpected fall in the market value of one or more assets. ALLOCATION OF GOODWILL IMPAIRMENT LOSS. for annual reporting periods beginning on or after 1 January 2018. 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