PricewaterhouseCoopers carries out impairment tests for companies in concordance with the international financial reporting standards (IFRS) number 36 (IAS 36). Impairment tests are different from valuations in a way that the goal of the impairment test is rather to explore whether the operational value of the asset will reach a certain minimum than to explore the market value of the asset. If the operational value goes below the recorded value, depreciation has occurred, which will be illustrated in the company’s operational accounts.
PricewaterhouseCoopers has carried our impairment tests for several companies in Iceland with subsidiaries operating both locally and globally. Our specialists in the Business Advisory Services are experienced in interpreting and executing the IAS 36.