I

Tffindarmentofassets 1 7

III jug
Indications
Ray
Individual
Generating
É
Assets Goodwin
one
FFAer

airman
I
I
annual Euless

on
cost Lanocation
of Iit
assets
Cora
of
special

coff
IL ca ra

Impairments AI RI if CA RA if RA CA No IL
thro
Ignat or
TvalueinUse Proffers
b fucesscost disposal
of
d Incasedwhyevenwhenco is not
Eg Co running aby
is between Mumbai

and Lonavala Bis isdown impairmentcheckdone IL intendingto sell disposethebus

if co intends to continuerunningthe Bus andnotsell it RA isbasedon frasscost disposal

of
goo

CA
Goto IET AustIndasrequiresRAbehigherfullor
vile 900 800 my p g y g go
theasset As netfu alsorepresentsthe
A1000 pv
IL Ay I ra goo offersCnetofourdisposalcost thatthe
buyerexpectstoearnfromtheasset
 I

men Ioresexturion
whenRAC cot
Exist Sangma

go Haas.io ears
Eg so go is
w Indas
Eeg

mine
Its RA couldbelessthanabove onlywhendisposal
Carr

Indas36 Inaas36
forgin

IfInIndasiog
also
such
in

investments
Costare significant as RA isneverless thannetfo testedfor IL
arenot
astheyareequitygust

Hence Ind As 36 is not relevantforassets

that are carried at netfairvalueCorcesser
F Itismeasuredat fut

but isrelevantfor assets carried at Fu unless

other Ind AS
a 487,8
Revan
modelBeaver
i
Other
Plant
Indas16 ndAsal
requires
Sm netfu
unlessfunot
Indass6only determinable
appliesifagriassetsare J
not carried at net fu
 I
Whento checkImpairment
I Impairment tobetestedonly whenindicationexist
ext
a Goodwill

É
b Ia withindefinite lifeor notyet Ptu
t
ÉtstÉf
at
soogaitionofGwaraboveIA
reportingdate
i
mmmm
atleastannually andwhereimpairment
indicationexists
mmmm
However asset mayor

anytimeduringthe year but Sg

consistently at sametime ineachyear
Le Ind Asstates that evenwhen indicationexist
if entity canestablish no It exists without

doing all detailedscalculation ofthis I das

InvestmentinSITUla
no impairment testing is required
indigitainandas carriedat costin Sfs
Eg kLtdacquired RCBfranchise CA100
IMds
LET
crores Teamconstantlyloosing endorsement
Mirna
External
Indicators
revenue is declining But Kita identifies
Indicators
foryear
profits
of
sharein ina aw that franca can be easilysoldfor500Gong
m ormore then no Value in Use computation is
needed as RA CA
 I
5 Egofimpair indicatorsbasedon Internact

j
inase
revenue revenues
2022
1 III I.es Emy
Entity's changeinplans Feducingthecapacityetc Sita distributed 4000 asdividend
Hltd or dividendto port 3200 nooooo
6 Assetrecentlyrevalued andnosignificantchanges and Investin Sitacarried cost8000
in fuafterthat will not have impairment
indications unlessthe disposal costs are significant Dividend
ofsuaforyea.tn
nil
Profits n
7 If Impair indicatorexistswhetheror notthereis nowfurthertest impairmentunderIndas36 TBI
IL entityneeds to review usefullife RU jj ii
method deplamort on assets
of
Eg n4zo_sgnustinsuac8ot.s 8000 byread
ginny guy my
Inthiscase Investinsitu inses on31.3.23carriedat
cost
this ca 8000 share in taw ofrectain sita
7500 80
II 8000 9000 80 ooo
S 681 showsimpairmentindication

rightly so as 5 hassufferedlosses insetsnolossisbooked

an investment carried at cost
 I

D.Definitic EE 1.4.2022 PPE cost2000L

life gears runic Dep sum

Impairments Excess
ofcaoverRAofasset measurement Revanmoden
or cashgenerating unit

on mama
carried inthe fs ondate
31.3.2025
I
Norval done but impairmenttestedan

of ERICA
impairment check d
0 Caisafterdep tiudate 22 23 Dep 120006

Canbebasedon Costar 4
Reval Carl depending 2324 Den
at Egg
onaleingpolicy 31.3.24

AnyBoumodemasset 31.3.24 Rival 1000

likeprovforDRSetc 31.3.24 Revalued

CA Joo
tobeseduced
fromtheca
2083
g 31.3.25 Ca
life 5year Rune RA
171
Impairmentcheckedon 31.32023 RA850 IL 323
IL IL will beadjustedfromrenal reserve
CAatyearend 1000
10,9 800
AI RA 850
 I

Higher
Amount Ra of htt
a Fulesscostofdisposal impairment
b via check

Incase
if eitheroneisavailable
50 5 us nototherthan assumethatwhat
48 is availableis theRA
RA

mastairematrimean
Reasontodeeduct
Drspoufromen Fitted disposal asset
of
I SIR.ie
Letscallit
n Exist mtEiIexums
ÉÉL soggy
payitbutthe
man
nine
my fromassetor Cga
HenceBoredthereisnolossJ Pu
ofFeesfromoperatingthe
asset including Cfsfrom gind
disposingasset cutfanydisposal
arsis atend estimated
of
usefullife
Ind As providesguidance
on determination
of UH
 I

RE
X3 Xs 516 x6 71
aSalesunits 10,000 10,070 11,025 11576 12155
b SP 200 206 212 219 225
I 2090,000 21.63.00023,3730025.35.164 27.39.87
dfp.nu01go 13go 162171165 108 17

qq.IE IfI
16.09000
1790001,1 1519,49768207805
g ay
I I 65,000
17701,000 18769,125
TotalCosts 16,0
0,000 9,44768 8,0

Net Cfs 400,000 462,000 9,68175 590,376 736,370

Sof to computeuca we willprojectfuturemeteorsfrom Crete

Fp_a i
operatingactivities pre tax Dorf

20 73,169 valve incise

Ihn.asdtotadfbouionind.PU
with
offcfs
fixedone will proportionate increase

É 300000 InflationIndex and not to t everyyear

with increased sales

1678,500
 CA Final FR In Class MCQs by Sarthak Jain
L10 Ind AS 36

S.No Poll/Quiz A B C D E Correct Ans

Company runs Bus on tours. Cost of acquisition 1.4.2022 1000

Life 5 years, RV Nil

Y 1000 - 850 =
1 N B
150
At year end indication exists and ILD tested and RA was 850,
whether any IL to be recognised?

An asset that is recently revalued will not be impaired unless the

2 disposal costs are significant TRUE FALSE A

IL in case A and B
3 100, 100 100, 200 A

IL under Indas38 to be tested for? Assets carried at Assets carried at fair

4 Both C
cost values

Company has a factory manufacturing plastic bags, straws,

packages etc which is now all banned by the government and
Y, all assets in Y, all assets in Y, all assets
factory is only operational for making some exports. Whether
5 N Y, machines factory in factory in except asset Poll
there is an indication for IL and if IL arises with whats the loss to
proportion of CA proportion of FV like land
be adjusted?

Whether IL to be booked, whether IL required if BoD has passed

6 resolution but seats are yet to be changed, in previous question Y N A
S.No Poll/Quiz A B C D E Correct Ans

Company runs an airline ....Vayu Ltd. It has 1 aircraft . CA

500Crore. Current capacity is of 200 passengers and at this
capacity VIU will be 450 Crores. Company plans to change the
7 seating soon and increase it to 250 passengers (with better space Y N A
utilisation and narrower seats) Then the VIu is estimated to be 600
Crore.

Company has an IP given on rent

Company earns 1L p.a. rental and life is 5years, and est RV after 5
years is Nil
1L x AF 10%-5yr -
1L x 5yr - Interest
8 Company has taken a loan to acquire this asset of 3L at 10% p.a. 1L x AF 10%-5yr 1L x 5yr Interest costs per A
costs per annum
interest. Loan is repayable in 5 equal annual instalement. VIU? annum
DF10%