2013-10-16 Impairments amended - Understanding changes to IAS 36

On January 1, 2013, the IASB issued IFRS 13, Fair Value Measurement, resulting in enhanced fair value measurement and disclosure requirements. In conjunction with the issuance of this new standard, IAS 36, Impairment of Assets, was amended to remove fair value guidance from the standard and ensure consistency with IFRS 13’s fair value framework. While in some cases the amendments to IAS 36 simply updated terminology (fair value less costs of disposal (FVLCD) vs. fair value less costs to sell), they also include guidance illustrating differences between value in use (VIU) and fair value and introduced several new disclosure requirements. This publication discusses both the disclosure changes effective for 2013 annual periods as well as the revised disclosure requirements that are effective for 2014 annual periods.