IAS 36 Impairment of assets


Financial statements' objective is to provide financial information about the reporting entity that is useful for existing and potential investors, lenders  and other creditors in making decisions relating to providing resources to the  entity. The aim of the impairment test is to define the recoverable amount of the asset tested and adjust carrying amount accordingly, to make sure the carrying amount of the assets presented in an entity's balance sheet is not higher than their recoverable amount. 

IAS 36 standard sets out the impairment requirements of intangibles, property, plant and equipment and subsidiaries, investment in associates and joint ventures. This course explains the whole process of impairment recognition of these assets (such as the aim of the impairment test, concept of triggering event, indicators of impairment, concept of recoverable amount, six steps for allocation of impairment for a cash generating unit, impairment reversal, etc.) using practical examples and interim tests to enhance understanding.

This course will enable you to:

  • identify the scope of IAS 36 standard and situation when to apply IAS 36 standard
  • identify when to perform an impairment test
  • make a distinction between a triggering event review and an impairment test
  • identify indicators of impairment
  • define recoverable amount as the higher of value in use and fair value less costs to sell
  • identify a cash-generating unit
  • understand the steps for allocation of impairment for a cash generating unit
  • review IAS 36 standard's disclosure requirements


Further information:

  • Training hours: 60 minutes 
  • Languages: English, Hungarian, Russian, Serbian

This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.


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Contact us

Ana Cetkovic

Ana Cetkovic

PwC's Academy Coordinator, PwC Montenegro

Tel: +382 67 643 304