IAS 36 (Impairment of Assets)

Definition

The IFRS standard that establishes procedures to ensure assets are carried at no more than their recoverable amount — the higher of fair value less costs of disposal and value in use. IAS 36 requires impairment testing whenever there is an indication of impairment, and at least annually for goodwill and intangible assets with indefinite useful lives. If the carrying amount exceeds recoverable amount, an impairment loss must be recognised immediately in profit or loss.