StudentShare solutions
Triangle menu

IAS 36 and the Framework for the preperation and presentation of financial statements - Essay Example

Extract of sample
IAS 36 and the Framework for the preperation and presentation of financial statements

The carrying amount can be defined as the amount at which an asset is recognized in the balance sheet less accumulated depreciation and accumulated impairment losses. The recovery amount can be defined as the higher of an assets fair value less costs to sell (usually called net sales) and its value in use (homepage)2. The International Accounting Standards Board has prescribed the identification and conditions for assets to be impaired. Every reporting date at the end of an accounting period every organisation applying the rules of the IFRS should test if any asset is impaired. If any such asset shows that it is impaired then the organisation shall estimate the recovery amount of such asset. Other conditions attach to this test includes the test of for ``an intangible asset with an indefinite useful life or an intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test may be performed at any time during an annual period, provided it is performed at the same time every year. Different intangible assets may be tested for impairment at different times. However, if such an intangible asset was initially recognized during the current annual period, that intangible asset shall be tested for impairment before the end of the current annual period, test goodwill acquired in a business combination for impairment annually in accordance with paragraphs 80-99´´3 (though the guidance on how to measure goodwill impairment should be included in Section 27, rather than referring to paragraphs 80-99 of IAS 36 Impairment of Assets)4. The IASB also add to the above rule that if an asset may be impaired by its recoverable amount should be estimated for the individual asset otherwise an organisation should determine the recoverable amount of the cash generating unit to the group where the asset belongs (the asset’s cash-generating unit)5.
The measurement of the asset’s recovery amount ...Show more

Summary

IAS 36 is the International Accounting Standards (IAS) that deals with the impairment of assets. This standard was first implanted on the 1st July 1998 and it was revised on the 31st of March 2004 and was effective on the 1st of April 2005 (homepage)1.
The International…
Author : jenniegutmann
IAS 36 and the Framework for the preperation and presentation of financial statements essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"IAS 36 and the Framework for the preperation and presentation of financial statements"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial statements
Furniture is a product that has a huge marketplace due to the fact that all homes worldwide need furniture. A hot trend in the industry is the offering of green furniture which is furniture that is produced from renewable sources. A company that has exploited this trend in Europe and currently in the process of penetrating the US marketplace is IKEA.
3 pages (750 words) Essay
Financial Statements
The assets include accounts receivable. Accounts receivable asset represents the amounts owed by the creditors. Sometimes companies sell their product on account. This means the company delivers their products to the customers. In turn, the customers promise to pay their debts after several days or months.
4 pages (1000 words) Essay
Financial Statements
The four basic financial statements are balance sheet, income statement, statement of changes in equity, and cash flow statement. Financial statements are important and used by different individuals or groups such as managers, employees, suppliers, creditors, government agencies, and the public.
4 pages (1000 words) Essay
Financial Statements
The critical nature of the information demands that it be accurate and truthful. They are formatted and calculated using Generally Accepted Accounting Practices (GAAP). They must adhere to standards set by a government controlling body such as the Financial Reporting Council (FRC), the Accounting Standards Board (ASB), and the International Accounting Standards Board (IASB).
4 pages (1000 words) Essay
IAS 36 and the Framework for the Preperation and Presentation of Financial Statements
From this research, it is clear that the International Financial Reporting Standards (IFRS) summarized the definition of impairment as interpreted by the International Accounting Standards Board (IASB) for implementation by users of financial statements. An asset is said to be impaired when its carrying amount exceeds its recoverable amount.
5 pages (1250 words) Essay
Financial Statements Master Essay
It will further elaborate how accounting for inventories will change according to these concepts/assumptions. "The board of the International Accounting Standards Committee (IASC), a 13-member (all part-time) organization representing professional accounting groups (e.g., the AICPA) from member countries, promulgated IAS beginning in the mid-1970s.
12 pages (3000 words) Essay
The qualitative characteristics of Relevance and Reliability which are identified in the IASB Framework for the Preparation and Presentation of Financial Statements are the key attributes that make financial information useful to the various users of fina
IASB has set standards for financial reporting which ensure that the reporting is done according to the set principles by all the companies. This helps the users of financial
14 pages (3500 words) Essay
Financial statements
Not only this, I also need to know the costs associated with yarn sales. Due to integration of various departments in my organization, I closely work with accounts
1 pages (250 words) Essay
Financial Statements
Home Depot is one of the largest companies in this industry in terms of revenues and profitability. The main competitor of Home Depot is Lowe’s. However, Home Depot has always remained a step ahead of Lowe’s according to
6 pages (1500 words) Essay
The IASB Conceptual Framework for Financial Reporting (the Conceptual Framework) sets out the concepts that underlie the preparation and presentation of financial statements. According to Hines (1980), the ontological assumption underpinning the
This also increased the risk of development of mutually inconsistent standards that violated the main objective behind preparation of financial statements. To meet the need of robustness and consistency in the financial statements, the conceptual framework was
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment