IND AS 36 Impairment of Assets

te te te t CDR
Scope 2 Identifying an 3 Measurement of 4 Recogarneas
Asset that may Recoverable Amount of Imp loss
be impaired

I LDR LDR I LDR LDR

5 Frequency of 6 CashGen
Reg meas 8 Reversal
of
a non
Controug
unit Cau of Imp loss
Impairment test Imp loss Interest
of CAU Impactof
GU
Impairment
HI
common
Pool
 Impairment test s
caddying Aunt we will
get this from Bls

Recoverableant

Use sale
Calveinase Eairyalvedesscost sell
VIA FULCTS

whichever
is
higher

Basics
EI
Akita
Biscuits
manufacturing

sale machine
0104 22 s 402

MET
Spey
Residualvalue my
or Sellscosts 24

In
Biscuits
FULCTS 381

1 04 x2
Remaining life 59ns
cash flows Expected lot
Future Years from seeingbiscuits DF Py
manufacturedframmachine

1 lol

2 15L
3 102 present value offuture
Y cash flaws generated
15h
from using the asset
5 Scrap value
122
if any I
46.68L Valve n
approx use on
01 04 22
 01.04.22
Beaut on

46.681
value in use
FULCTS 38C y
Assume C A on 01.04.22 401 C

RA 46.68 46.68L
I L 3 322

Illus 3
Can of C A on 311031 4

Cost on 01.04 x life 84ns 20000

less 34ns Depm 7312 5

20000450 0 3yrs
Oars
C A 31 3 714 12687 5

Recoverable Aunt on 31.03 4

i value in use
ur CF DF 1st PY
XY X 5 2000
XS X6 3000
X6 77 3000
X7 X8 4000
XE X9 2000 500
Residual value 9510 approx
Addin last year
cashflow
ii Fillets Given 10000

i Rec Aunt
Higher of vice amid

Impairment loss
CA RA
12687 5 67 10000 Ofa
I 2687.5 JE Imploss PC 2687.5
TO PPE AIC 26875

Revised C A on 31.03.19 After Impairment loss

10.000 Remaining life 54ns Residual value 500

residual
8 71
1
value
1900

I
p.a
Sy
Eg Guidance on Foreign currency futurecashflows
value in use Foreign currency
at Expat us
Akita cash flows
Indianco machine output

Item CF ye
India
us
toy
57
x

T Py
31.3.23 ur level
101
31 3 24 Car 2 end 152
313 25 Ur 3 end 201
40.41 Lakhs
convert
using spot rate
ExRate on 01 on x2

Conversion Rate
7751
value in use E 230302approx
313 73 xx

313 Xu xx Ignore
31 3 45 Xx

Spot Rate 0104 x2 72751

Eg Jump loss Treatment Asset Revaluation Model

0104 72 Cost PPE lol tours

Deprn x2 73 II
C A 313 3 92
FX 313 3 Given

Rex Gain Ge
CooCMR
 Revised C A 31.3.43 152 life 94ns
Depon 1 3 xu 1.674
C A 31 3 4 13.33 Impairment Test
FIR A 31 3 4 122
I L 133L IL COLE NR McDa 133

As asset is Revmodel TOPPE 1.33

Treatment same like
Rev loss
i e To the extent of Drax Gain
existing loss Ady from OCI

In above case only treatment of Imp loss

is same like Rev loss
But Nature of Both losses is diff
Rev loss compare C A F Y
Iup loss s compare c A MR A

Revised c A fatter Imp loss 313 4 122 Remain's life 8am

Deprn Cxa xs man Itsy

 Cay Group of Assets that generates cash flows togethed
leg Ald Bhai's Teaching set
up

Camera Mic ttd

laptop Ipad
C A 200 300 100 go 650
R ACGiven 520

I L Cup 607 Co 407

130
13072 11304 Allocate between
all 4 assets in
the ratio of CA

Revised C A 160 240 80 40 520

Individual Impairment Test Not possible

Eg q Allocated to caus

Akita
Caul CA Burn s laptop Camera Ipad
Cau 2 CFA Burn srnaebook Mic Projector

k u I
Benefits Benefits in Both Judas Benefitsin Both
use
only in case
Coral Card 192 Car's But
cannot be
251 75 allocated
can I CAUL
Case 1
Carl lap Camera Ipad aw Total
C A Given lol 52 5L 222
R A Given 162

I L
d
2L L L
24 Gr
d
can Can É is
Grow
22
isaac
He
allocatein
other
Revised C A 81 42 M
assets
intuedatio
c A

Caul MacBook Mic Glu total

Projector
CAAiven 8L 42 42 161

2 A Given

I L
II

Case 2 Benefits Both caul Cao 2.1 122 4

Carl Cam Gw Total

lap Ipad
C ACGiven IOC 52 5 50K 2080000
2 ACarven 18L
state 50k
I L I 15014 50K SOK 250000 Bal 21
a
Ms
C c

4 52 4.5L
RevisedCA 9L

47
card MacBook Mic Prof Galta Total
C ACCreen 8L 42 41 150000 1780000

R A Caven 202
IL MIL

Case 3 GrauBenefits in Both Call But not allocable

Impairment test In 2 stages

stage Test Individual car's without Glu

caul
lay ca Ipad Gk Total
C A lol 5L 52 202

RA I
15014 5012
Motta
Il IL 22 allocate in
other
Revised C A 9L 4 51 951 18L Assets

cats Mae Mic Projector A Total

c A 8C 4L 4L 162
RA 17h

IL
 Combine Carl Can 2 t Gw
stage2

caul can 2 Grue total

A A f
cap cam Ipad
C A Revised 18L 161 g 361

R A Given 34 5L
1st Gas 1 se
Il fi gu p g
Balin other
Revised C A 181 16 05h Assets
D

Conceptual Note In stage 2 loss cannot be more than 21 as

Imp
In stage 2 we came to test only for GW as Carl a card2 are

already tested for Impairment

d AN X Money mom gg
Soup Test
Egf Corporate Assets Allocate to call's
69 Admission office
can l ca Bush Cam Ipad corporate Asset
lap lol
µ pm I Can2 CFA Bush Mae Mic
Pag
t t t
case Benefits only in case 2 Benefits in E3 Benefits in BothCall
Caul Both Call 42 But Not allocable

Can I Call2
307 701
Case
came Coop Asset Total
cant
lap Ipad
C A Given 101 52 5 lol 302
RA Given 242
I L 2L IL ID 24 a
Revisede A 8h 41 41 81 Mistake Allocatefullin
Coop Asset
Allocate in All assets
incl CoopAssets in the
ratio of C A

cans Mae Mic Dog coopfset total

c A 8L 4L 4L 161

R A
IL

Case
Cheap camera Ipad Coop
Assad
Toth
CA lot 5 5 32 232

Ra
I L 13 0.65 0.66 0.39 31
31 Allocate in
3423 the action
c A

Revised C A 8 71 4 352 434L 2.612

Cans MacBook Mic Pong CoopAsset tot total

CA 8L 92 4L 7h 23L

RA
IL II
Case 3
Test 2 stages
Impairment

stage Test Individual Cau's without CoopAsset

Total
Caul Lap Camera Ipad CoopAssex
C A IOL 5L 5L 201

R A
I L IL sun solo Ie
Revised C A 92 9 5h 4 54 181

cause Mae Mic Pooj Coopassex Total

C A 8L 4L 4L 161
RA
I L
Mf

stage Test Combined Call A Coop Assets

Coop Asset Total
411 971
181 161 104 442
C A Revised
412
RA
IL O 134 BE Earp'Isset

Already Impairment test

is Done in stage 1 No

Imp loss allocation in stages

giif
nygggy.gg
 Illus 12 the Mn d
CA the Begn of the yr 27.3
RA the Begnoftheer 121
142 loss PrewCrain ace
loss 15.3 91 3L loss PIL
Imp
Treatment same like Rex 108
I LCOCI 14L
1 32
Iccpr
Revised c A fatterImp loss 12 Remaininglife to ppe 15.31
39ns
Deprnp.a help.a

Illus 20 P life toys

card Plant A Goodwill total
Cost 01 09 x gooo ya 1200

Less tar Depon 100

C A 31 03 2 900 200 1100

R A 31.03 2 600
200GUO
I e 300 200 500 7 Bal Boo other
Revised C A 313 X2 600 Goo
Illustration 214h
will understand in Ind AS103J
p Just copied
we

Computation of Glu
PC 81 2 5 24 801 1280000

G NCE 201 45824 280000

shaky 714
E INA 1007 13.00.000

aw so

ii Computation of Imp loss

104000 260000 2 8
Glee 260000 73 104000 260000 215
C I s 52000 260000 45

E'in 000s
Cana Other Assets Grew Total
CA 600 164 704
RA 740
I L NIL

Cau B Other Assets Grow Total

CA 550 104 654

RA 650
I L 4 4
Revised C A 550 100 650

Caac other Assets Grew Total

CA 450 52 502

RA 400
IL 50 527 102
Revised C A 400 400

A CAB Came Total

total loss 4 102 106

Imp
Non contaoutgat
Ingots 207
i e 221.2
 Illus 23 LDR Coop X s C A 600 Coopy c A 200

Cann t be allocated
A B C
to individual can's
In the ratio of 500 750 1100
CA useful life X 10 X 20 X 20 ImpttestC2stages
Casper ICAI 5000 15000 22000

Allocator of CoopX 71 214 315

600 600
82 0 160079 34

Staged Individual canImptest including Coop Asset X But excluding copy

Can A Other Assets Coop X Total

C A 500 71 571
RA 600
I L O

Cau B Other Assets Coop X Total

CA 750 214 964
RA 900
o 14 64
I L
64 750969 69 214
964
Revised C A 700 200 900
 CGC Other Assets Coop X Total
CA 1100 315 1415

rn
I L
12 z if
1541100,1mg 15 315
1415

Revised C A 1088 312 1400

Cafe
Stages Combined
Impairment Test coopy

already
included

Call A CAB Care

CorpY Total
c A Revised 571 900 1400 200 3071

RA Given 3200
Il

otherAsset Coopx

Off Cana

Summary total Imp loss camp 50 14

came 12 3
 Illus 34
CA 31 3 16 660000
RA 31 3 16 588230

I
Ife T De at P
3113117 276000
31 3 18 192000
31 3 19 120000
If there isany residual value Do not forgetto addin
31 3 20 114000 last year cash flow in this ques it is NIL
588230

ii FYLOTS 600000 96000

509000

660000 588230
Califf Iup 1095
36000 loss OCI
Asset RemainModel 7770
35770 loss Pll

Revised C A 31 316 588230 life 44ns III L Oct 36000

IL PII 35770
TO PPE 71770
Deprn p.a 197058
p.a
5882301mn

Treatment of Gout Compensation Any govt compensation would be accounted

only when it becomes receivable At this time

govt has only stated that
i
MAY compensate the Compte i credit should Not be taken for any

potential Gonet receipt

 EI Reversal of Imp loss Individual asset

Asset Day 01.09 x2 7200 life 104m

Depmpa 20
less
Lyn Deprn 140
MN
of
C A 31 3 4 160

Imp R A 31 3 4 120
IL 40 JE IL Pll Ale Da 40
TO PPE 40

Revised C A 313 4 120 Remaining life 8yn

c I Depm xu Xs AI Deprn exp 251 Impairment
C A 31 3 5 105

Depor 15 6 1151
Indication of C A 31 31 6 90
Reversalof R A 3131 6 140
Imp
Reversal of Imp loss 30 PPE AK Dd 30
Revised C A on 31.3 x 120 life ayy TO Rex of IL PIC 30
after Reversal 90 30

and Max Reversal of I L

on 31131 6
Actual Reversal of I L 50
of Thax Reversal of I Cami 30 v c A if Noturp
D on 120
3113.16 31 31 6
8073
200 44ns Deprn
Cora
get
why reversal of IL Max was 7309110140 2 CA afterdamp
90
Coz we Booked lossof 2 40 But saved on 3113176
75 2 5 Deprn i Our Net loss
was only 230 Max Rey 30
 can rnax Reversal including Glu
EI
life 104M CMOlife

Day CGI other Assets Guo Total

Éametpad
Cost 01 09 X2 20,001000 2,061000 22,061000

less lur Deprn 200000

C A 31 3 3 18,001000 200000 2400,000
R A 31 3 73 15.00.000

I L 300000 200000 5.00.000

Revised C A 313 3 1500000 15.00.000
life 9urs

less 142Deprn 166667

C A 31 3 74 13 33,333 13.33.333
Indication
Reversal R 31.3 x 20.00.000
of I L
Actual Reversal 6.66.667
Max Rev of I L 2 66,667

Reversal of Camp
of Max I L

D C A CifNo Imp on 31.3.44 1600000 201 Lars Deprn he

excl Gw coz no Reversal on Glee

ii C'A Cafferfup an 31 3 4 13.33.333

Max Reversal 2.66.667 PPE

to Revof It

Can Other Assets Crew Total

Revised C A 313 4 16.06.000
fatterReversal of I I 13.33.333 2666677
 Illasco
Lud life 204ns
Cat Other Assets Gw Total
01 04 X1 320000 80000 400000
less LyssDeprn 32000
C A 31 3 73 288000 80000 368000

R A 31 3 3 212000
IL 76000 80000 156000
Revised C A 31 3 3 212000 212000
life 189ns

less L yrs Deprn 235567

212000 2
1

C A 31.3.45 188444 188444

RAA 31.3.45 Higherof vile UFOs 304000
ActualRex 115556
can free Max RexGMD 67556 y
CA Cif NoImp 31.3.45 256000
Cexclaw 320000 GunDeprn
64000

C A Cafferty 313115 188444

Max Rey 67586

Revised CA 313 5 256000 188444 675 3

life 164ns

Deprnp.a 16000
2560001169ns
 IMH
costop.oy.gg 100 life 44ns
25
less
Deprn Xo x1
CA 31 3 71 75

R A 3131 1 60
15
Imp loss
15 SEE
If
Revised CA 31 31 1 60 life 34ns
less Depm XI X2 120
CA 31 3 72 40 RA
Imp
No CA
RA 31 31 2 go No Revof I

CA 31 31 2 40 life Lyn
less Deprn X2 73 207
C A 31 31 3 20
RA 31 3 28
31

ActualRev of IL 8

Max Rev of Il 5 u

Revised CA 3131 3 25 life I yr

com Max Rex of Il

CA CifMo Imp 25 noo 3ffeprn
ca fatter
Imp 12,1
that Rev of Il
Illus 32 LPR
OFI
e Machine B
Machine A
1
Individual Impairment
Test Individual
Imptest
X Mach Inventory the
May He
16,38 40
outofscope
HI
MoImploss
allocation
A Machine A TempTest on 31 3 18
1.4.13 Cost 10.00.000 life 104ns Residual value 50000

less Sars Deprn 475000

101450000 54
104M

31.3.18 C A 525000
31.3.18 R A 489650
Cam
Imp loss 35350 IE IL PIC 35380
TO MANYA 35350
Revised C A 31.3.18 489650 Remaining life Syrs Res Value 50000

Recoverable Amount
and
D value in use ur CE DF lot Pll
I 150000
2 100000
3 100000
4 150000
5 100000 50k Res Value 489650 approx
 ii Fair value less cost to sell

Fair value 7.00.000

Less Costto sell 150000
125000
75000

FULCTS 450000

Note valuath fees direct cost of

Not a sells

Recoverable Aunt Higher of MUK Fu lets 489650

Can Imptest on 3113118

cat than A Mach B Inventory GW Total

CA 313.18 489650 350000 200000 150000 1189650
34nDeprn
f.gg Case
RA 313.18 10.00.000
39650 1500007 189650
Imp loss I I
Mo
Imp loss allocatedto oatof
Machine A as Impairment scope of
Ind AS 36
Test of A already Done

Revised C A 989650 310350 200000 10.00.000

31 3.18 life Suns life Fun
Res value
50k
 Prospective Deprn for 18 19
Mach A Mach B
CA 31.3.18 989650 310350
life Sun Res Value life 74ns
5012
87930 44336
Deprn 18 19
4896851
CA 31.3.19 401720 266014

I CA 313.19 After Reversal of I L

Maurine A
CA 31 3 19 401720
RA 31.3.19 450000
Actual Rex 48280
Max Rex and 28280

Revised C A 31.3.19 430000

can MaxReversal on Machine A

C A Cif NoImp 313.19 430000
Ole 69nsDepm
10
1 6un

CA Cafter Temp 313.19 401720

Max Reversal 28280

 ii can Reversal of Il on 313.19
Can Mack A Mach B Inventory Glu Total
CA 31 3 19 930000 266014 200000 896014
revised
JICombinedA9B In
Rec Amt 313.19 760000 22 11,001000
960000 ICA

Actual Reversal 63986

IIMax Reversal arm 33966

Reversal of Il 33 d
I outof
Already Reversal Éptermitted
Done scope
Revised C A 430000 300000 200000 930000
31 3.19

Max Reversal on Call

and mama 430000
57 44MDeprn
C A of Cau if NoImp AnaunB 3 00,000 He
on 313119 Inventory s 2.00.000 5494g
aw Reversal Notpermitted
930000
CA of car after Imp
on 31.3.19 Max Reversal
TÉÉ
 Illus 33 LDR

Particulars X3 XU XU X5 X5 XG XG Xt XF XP
212 219 225
If SellSp a 200 206
206 31 219 31
200 31 212 37

I Mocofunits 10000 10500 11025 11576 12155

10000 51 10500 51

I Total cashinflows
sales A

I Costp.a 160 162 165 168 171

160 11 162 21 165421 168 27

I toted Cath outflows

LIMIT

II Maintecost 50000

I Res value DO 80000

Neteash flows xx xx xx xx xx
A B C D
D F 81
Py
Illus 35
Calm of C A on 31st Dec 982 Ren Surplus on 1st Jan 43

Cost 240000 life 20am

DeprnLyns 240007

31 12 1422 216000

C A on 1st Jan Yr 3 216000

F v on 1stJan 983 250000

Rey Gain 34000

OCI MR

Revised CA 1st Jan Yr 3 250000 life184ns

less Deprn Car3 13889
250000 1 18

C A on 483 end 31stDee 236111

Imply
CA on Dan 1 Yr 4 Tan 236111
RA 100000
7340001055 OCI CMR
Imp 105s 13611 PIL
102111 1055

Revised CA Day I 484 Ian 100000 Revised life 10am

100000
Deprn are
c A the end of 424 98g