chapter 7 - impairment of assets

The exercise was created 2024-09-12 by Makizon. Question count: 5.

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  • Give examples of indication of an impairment that arises from an external source of information. Increase in the discount rate used in calculating the values in use, significant changes have occurred in the market to which the asset is dedicated, observable indications on a decline in asset value. A decline in the shareprice of the company is not an example
  • How is value in use calculated? The sum of the discounted future cash flows from an asset
  • Can an asset be impaired if there is evidence that the economic performance of an asset will be worse than expected? yes
  • What is a CGU? Cash generating unit and is used in the valuation of goodwill
  • For which assets must the recoverable amount be determined every year? Goodwill. Not for customer receivables, property and inventory

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