Impairment of assets under IAS 36

Objectives and advantages   

• The training is conducted as a workshop. It combines presentations by the trainer with individual work of participants
• Intensive and practical: each rule is illustrated by numerous examples
• Unique in the Polish market building a complex model of impairment using a spreadsheet, which is then used as a basis for summarising the issues discussed
• The course is conducted by trainers with many years of practical experience 

Programme 

• The scope of IAS 36:
• Assets subject to the requirements of IAS 36,
• Comparison with other standards requiring write-offs on the value of assets.
• Identification of external and internal premises for impairment.
• Assets for which regular impairment tests independent of premises are required.
• Definition and measurement of recoverable amount.
• Value in use:
• Cash flow: rules for making forecasts, identification of cash flows, replacement expenditure, residual value,
• Discount rate: risks taken into account when modeling it, determining the cost of equity, debt and weighted average cost of capital, techniques of grossing up the interest rate.
• Cash-generating centers:
• Identification,
• Allocation of impairment to individual assets included in the CGU.
• Reversal of an impairment loss in respect of an individual asset and the CGU.
• Recognition of common assets in tests.
• Impairment tests in the separate and consolidated financial statements.
• Goodwill impairment.
• Disclosures regarding impairment - the requirements of IAS 36 in the context of examples of disclosures presented by listed companies.
• Errors and doubts related to impairment tests - analysis of practical experiences.
• Case study: impairment model prepared using a spreadsheet taking into account key aspects of IAS 36:
• Cash flow projection based on forecast results for a 5-year period,
• Projection of data regarding the residual period,
• The use of market data to determine the discount rate: beta ratio, cost of equity and debt, industry financing structure, bonuses and discounts,
• Calculation of value in use,
• Sensitivity Analysis

Materials

• a summary of the rules governing the issues in the program
• tasks with answers
• the materials are intended for use during the course and, more importantly, to help participants in their daily work.

Date and location 

25 May 2021, Warsaw or Online Live

Tutors

Contact 

Aleksandra Trych | tel. +48 505 171 636 | aleksandra.trych@pl.ey.com

Educational points

CPD (Continuing Professional Development) - our trainings meet the requirements of international professional organizations (ACCA, IIA) regarding the further education of their members.