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 

3 listopada 2020, Online Live or Warsaw 

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.