the combination carrying volume of intangible assets with indefinite valuable lives allotted to those models (teams of models).
A bus enterprise provides solutions beneath contract having a municipality that requires minimum support on Just about every of 5 independent routes. Assets devoted to Every single route plus the cash flows from Every single route is usually discovered separately. Among the routes operates at a substantial decline.
The cash‑making device’s good value fewer expenses of disposal is CU800. This total considers restoration expenditures that have now been furnished for. As being a consequence, the value in use for that cash‑generating unit is set following thought of your restoration fees and is particularly approximated being CU700 (CU1,two hundred much less CU500).
The yearly impairment exam to get a cash‑generating device to which goodwill has become allocated could possibly be done Anytime in the course of an yearly interval, supplied the examination is done concurrently each year. Diverse cash‑building models might be tested for impairment at distinct moments.
an entity utilizes selling prices prevailing on the day of your estimate for related assets that have attained the tip of their handy everyday living and have operated beneath conditions similar to Individuals wherein the asset is going to be utilised.
Description of valuation procedures used to evaluate good value considerably less expenses of disposal Disclosure Text
a improve in the basis for recoverable sum (ie whether recoverable click here sum relies on truthful price considerably less costs of disposal or worth in use);
the long run cash inflows applied to ascertain the asset’s or cash‑creating unit’s benefit in use; and
When the intangible asset won't generate cash inflows from continuing use which might be mainly independent of Individuals from other belongings or teams of belongings and is particularly therefore examined for impairment as Component of the cash‑building unit to which it belongs, the assets and liabilities producing up that unit have not adjusted considerably considering that The newest recoverable amount calculation;
a major decline in budgeted Web cash flows or working earnings, or a substantial boost in budgeted reduction, flowing from your asset; or
If there is an indication that an asset may very well be impaired, this might suggest which the remaining valuable life, the depreciation (amortisation) approach or perhaps the residual value for the asset has to be reviewed and adjusted in accordance Along with the Regular relevant into the asset, even though no impairment loss is recognised to the asset.
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incorporates the carrying volume of only These property that can be attributed instantly, or allocated on an inexpensive and regular foundation, to your cash‑producing unit and may make the long run cash inflows Utilized in identifying the cash‑generating unit’s benefit in use; and
An entity shall evaluate at the conclusion of Each and every reporting period irrespective of whether You can find any sign that an asset may be impaired. If any these types of sign exists, the entity shall estimate the recoverable amount of the asset.