ࡱ > R ) bjbjVV E2 < < Y ! N N 8 D 0 l ( , B B B v v v $ " z v v v v v B B 4 g < < < v N B B < v < < < B `| H < } 0 < 5# 0 5# < 5# < L v v < v v v v v < v v v v v v v 5# v v v v v v v v v N f : Chapter 11 HKAS 36 Impairment of Assets 1. Objectives 1.1 State the principle of value to business related to impairment. 1.2 Define the meaning of impairment, carrying amount, recoverable amount, net realizable value and value in use. 1.3 Identify the events to trigger off an impairment review. 1.4 Compute the impairment loss. 1.5 Explain the allocation of goodwill for a cash-generating unit. 1.6 Explain the allocation of impairment loss for a cash-generating unit. 1.7 Explain the accounting treatments for impairment loss for a cash-generating unit and an individual asset. 1.8 Explain the disclosure requirements by HKAS 36. EMBED OrgPlusWOPX.4 2. Introduction 2.1 An enterprises assets are normally recorded at the value of transactions at the time when they are acquired. Subsequently, the enterprise may revalue their assets as times goes by to reflect their fair value of the assets as stated in the balance sheet. 2.2 Moreover, it has long been established that if there are permanent decline in the value of assets, i.e. the assets are impaired, the assets carrying amount should be written down to their recoverable amount. 2.3 The purpose of HKAS 36 is to ensure that enterprises do not carry assets at a value in excess of their recoverable amount ( S6eVP