Ind As36 Impairment of Assets

1Impairment lots when lammying Amount Exceeds Recoverable amount

E9 CA 560000 RA 420000
I 500000 420000 80000
Imp 1053
Journal
Impairment loss Pk 80000
TO Asset 80000

lil Recoverable Amount Fainvalue less lost to sell or value in use

9whichever is Higher

An Entity Shall assess at the end of each reporting period whether

there is any indication of impairment
If any such indication exists Estimate Recoverable Amount
If Recoverable Amount is less than c A Recognise impairment 1055

Indilation of Impairment
External Eadication Internal Indication
Il Asset market value declined significantly lit obsolescene on physical damage of
more they would be expected due to an asset
passage of time on normal use
iilassetbecoming idle plan to discontinue
lil significant changes with adverse effect on restructure the operation Reassessing
on technological market economic or useful life ofresetas binitenathen Infinite
legal Environment
il marketinterestrate marketrateof melon iiileridenceindicating Economic performance

have increased affecting discountnotes will be worse then expected

it fannying Amountof net asset is none of cash needs beenoperating the Asset
man market capitalisation are higher than budgeted

E9 Paint iii
of External Dedication
CA 160000
01 1st at me at
P.v 50000 50000 50000 50000

165606 magnet Tnt nate 84

Oh 1st red and I

di 50000 50000 50000 50000
145685 magnetinterestrate tht

Here value in use of all decreased due to increase in market notes

E Point in of External dedication

Cannying Amount of net assets ofBusiness 1000000
Future Earnings every year 80000

if market capitalisationmate lot

Fain you Business 80000 800000
of lot

I Indication of impairmentSince Fain rate of Briney is E 800000

while c A of ares assets ane E 1000000
100091
machine

fooog
Discount Rates
Pme tax mates that medleys that current assessment of
ail Timevalue of money 6
til Risk specific to the assets at If
hi
C A of Asat 31.3.2001 500000
Indication of Impairment

Fainvalve of asset As period A 1137 350000

Cost to bed 15000
I FY Cfs 350000 15000 335000

Future Expected Cash flow to be generated brom using the Asset

151 2nd and um 5h
700000
IVofay cash 100000 100000 100000 100000

Flows 20000

391497
rate in use Higher
Fish notes

19197

i Recoverable Amount Higher of Fainvalueless lost to sell and valuein use

391997 Threatenof 291417 and 3350007

i Impairment loss 500000 391497 108503 Pk

Taunted Entry

Impairment loss Pk 108503

To Asset PPE 108503
BISHet
Statement
of Pll 14408503 PRE 1108507

Impairment less 108503

 Balance sheet heinous

Noncurrent Asset
PPE 9500000 1085037 391497

E gu cost model
lost E 1000000
of Asset
useful life 5 years
Residual Value 50000
RecoverableAmountfighen often on FY 457
2dam 518000 Residua 50000
athqu 285000 Athingned useful lifeis reviewedandrevised
to total Fyeaay

Blsheet
Pleader Str 1190000 Bankfasutlost 1000000

Ph LDepty Mayr 1900007

Me hempcost radar 1020007 Asset 1000000

000
Mda 5000071tyrflgoooo
Haepgloor 54ms
offer 1560007

PIC Dept hmu 4560007 Naep Lady 1190000

dk Reversal hmm 34000 f A Endured 620000

plefoepm Myr 80000 Impairmentloss 102000

Rila zadyrand 518000
518000 50000
f Dept 7 1560001
34ms
IndyEnd 102000
g A godyrand
762000
7400
A f Dept 4mW 1560007
206000
3400 C A GMynEnd
Reversal imp lost
of 34000
BC A Gnarled 240000

IDep g29000 500007 63333

34ns
 f A at him and had meme been no impairment 1055
Cost 9000000

Hala hyeon 760000 9190000 X hyrs

CACathyEd 240000g
i Maximum Reversal ofImpairment To the extent of 2290000 on2 285000
whichever is lowery

also at any and t useful life revised to 7gears in total

i Remaining rectal cite Byears

Nate
it cost of asset
Deprivation during the year Firstly
e Impairment toes secondly if thereis indication ofImp
Revised carrying amount

d Impairment loss is changed if RA less than e A

x x
changed to ple Higherof valuein use Fainvalve CTS

Foreign Currency Cash Flows GFunctional Currency EY

To calculate take in M
of ay zag nd I E
Dmellatyalveofay off 5009 600 6504 700 7004
2706 Discount note appropriate font 51
spot 51 80

i Value in reef 2706 X 80

I 216480
 Reversal
of impairment loss Caparple
Cost of Asset11 9 017 1500000 flite 5yeans
6000001
A Dept per syng
f a ofnay 1713.03 gooooo

Y 9mp loss 2ndyr 1270000

R CANNY 1713 037 630000

2100007
a sudden 9670087
CA of Ant 313 04 420000
t
Now Recoverable Amount Abet
of of 71stMoney 2007 case 7 6toooo
caseB 500100
C A of Atef had there been no imp coss
Cost 1500000
900000
434nsDept
CA 600000

CallA RA 670000
Amount
i Maximum Reversal upto f A of 7600000 on Recoverable
of2170000 whichever is lower fire 56000007
i Revered of Imp loss 600000 920000
180000
Asset Afc Dr 180000
To Reveredgimp loss Pfe 180000
Y NCA 420000 180000

600001
Call B R A 500000
RA Estoooo
Max Revered upto l A of E Gooooo one
of whicheveris lower
i Reversal ofimpairment told 500000 420000 2 80000
Allt af DV Soooo
RCA 420000 8000
To Revered ofTmp cosy goooo g I 500000g
 valueinuse 131304 11 and ne n I
951 2000 3000 2000 1000 2000
500
TE
FI its looool
i Recoverable Ant thighen of 100001 on 95131
171304 100001

Cost
of 9411 4 01Soo
20000
H Dep for Byng 920000 3 7312.57
sung
f A 71.3 04 12687.5

I Imp loss 12687.5 100000 7687.5 de

i R.CA 12687.5 2687.5
171704 10000

10000 500
i Dept fumy a
agog
54M
 I Rmp loss 7687 5
ii f c A 10000
Iii Departed hmu 1900

20001

fA fregimning 27.301
RA Beginning 12 l
i Impairment lose 27.3 121 15 301 Pk

Impairment loss of E 15.301 firstly charged from Reed Supt's balance

exiting on Blstreet and ten remaining changed to Pk
round
RevolutionSurpin alt 141
P e 1.31
To asset 15 301

Not prexon
Statement of Pll extract
Imp Cold 1 pal
often comprehensive income
Imp loll 19 l
I B c A offer Impoinmed 27.3 15.3 121
useful life nemoing yeen
i Dept next year 121 41
3years
Cash Generating Units ecu
A Chu is the smallest identifiable group of assets that generates
fash Inflows that are largely independent of cash I blows from other
assets on
group of assets
CGU A

Machine machine
Iodine
guy
Inventories
softgage

Example machine B caught fine and got damaged which is an Internal

indication of Impairment
Suppose Machine B do not generate cash fablows independently

I Valuein use of machine B cannot be determined

In Such Case Determine B A of c g u to which machine B belongs

Eg Cash generating units 1

Machine A 50000 fA 195000
Machine D 30000 RA 1150004Entire equi
software C 20000 i Impairment loss 230000 Pll
40000
X Inventories eA I loss R.CA
X DTA 5000 Machine A 50000 36000 90 15000 35000
lA pygooo Machine B 30000 10000 40 9000 21000
C 20000 30000 410 6000 14000
Software
Taxentonies 40000 X 40000

DTA 5000 X 5000

145000 115000

End a 31 impairment cold not applicable to inventories DTA Financial Assets

and any other comment nut

Allocated Goodwill to con haoodwinacquired on Business combination
total Goodwill 500000 Goodwin allocated to Cava is 307
Chu A
Goodwill 150000 i Impairment lossfirst entirely allocated toGoodwin
PPE 200000 Then Balance to other assets on a pro mathbasis
I Asset 100000 f a I loss R.CA
Inventories x 120000 Gloria 150000 1500007 NIL
Receivables Y 70000 PPE 200000 9766677115000 31 123333
PTA t 30000 Iasset 100000 1383337115000 47 61667
CA 670000 Inventories 120000 X 120000

B A ofChu 405000 Receivables

70000 A toooo
II loss PTA 30000 X 30000
670000 405000 405006
265000

Allocating Corporate Assets to ego freakin priority

corporate Assets Head quarters am a Division of the entity on a research
Centre Corporate assets do not generate separate cash Flows and they are tested
ban impairment in the contextof Cau

Eg Imp
That end has 3 193 Generating Units

Chu Chu 2 9903

Machine A MachineC 45000 Machine E 40000
15000
MachineB 35000 MachineD 5000 I asset 75000

Furniture 25000 Inventories 15000 X

Furniture 15000
Receivables 5000 X inventories 25000 X

H U

BA 85000 R A 270000 DA 70000

O
 Naveinule O FY CTS 15001
Chul
Machine A is
physically damaged and cannot be banner used 22000 expected
to benedised boom sale ofmachine as scrap selling cost E 500

902
machine c is a separate car and its valve in use is estimated to be
to 40000 Fx 975 38000 i Ria ofmachine C 40001

Theme is a is E 100000 which can beallocated

office building whoa ca

to Chul Chu 2 and chug in the ratio of 2 21 I

Imp 1035 110000 85000 25000

impaired
Gyu I fA I loss
Independently
p.cn
Machine A 15000 13500 1500
Machine B 35000 11500 7590 4472 30528
Furniture 15000 11500 1590 1917 13083
Receivables 5000 X 5000
Building45 40000 11500 9090 5111 34889
110000 85000

2 Imploss 140000 70000 70000

Independent
ord
1h02 one peg
p.gg
Machine C 45000 5000 40000
Machined 5000 6500045170 4647 357
Furniture 25000 65000 25770 23217 1786
Inventories 6000 X 25000
Ruildingtys 40000 65000 40
70 37143 2857
140000
Toooo
3 Imp 653 a 100000 70000 70000

Caus I loss Ry
yd 985 14118 25882
Machine e a 30000

I meets 25000 30000 2878528823 16177

Inventories 15000 X 15000

Building Ys
20000 30000 852 7059 12941
00000 70000

To determine whether Asset generate cash Inblows that one largely

independent of cash Inflows from open assets

output B output Independent

A mindParty
Assefa produces outputwhich Asset B Producesoutput
is transferred to Asset B which is transferred to

Independent mind panty

Case Active Market exists for A's output

Asset A is a
separate cash generating unit
because it is capable of
generating cash blows even if it is not generating cash blows

last 2 market doesn't exist for A's output

Active
Asset A is not a separate can because it is not capable of generating

cash Flows A B together forms a ego

16 CashFlows generated by assetego are affected by Internal transfer pricing

Entity shall use bestestimate of butane prices that could be achieved in

ARM'S LENGTH TRANSACTION
this standand shall not apply to
1 turentomies Waite down to writ as pen Ted Ae 27
2 Deferred tax Asset Lind As 127
1 Plan Asset Stud As 197
4 Biological assetmentioned
of Fv 45
F Financial asset had As 1097
6 Non commentassetheld fan safe ftmpainmentas pen Ind as 1057
7 Contractasset

Anentity is negd to test for Impairment at leastannually

following items
irrespective of whether there is any indication of impairment
1 Intangible asset with an Indefinite useful life mandatory Annual
MyImpairmenttesting
2 Intangible asset not yet available for use
whetherindication
3 Goodwill acquired in a Business combination
exist on not

Required to test ban impairment Annually and whenever there is any

indication that asset goodwill may be impaired
 Circumstances in which it is not necessary to calculate both an Asset's
twinvalue less cost to self and its value in use

lil If Either of these Amounts Exceeds asset's cannying amount it is not

necessary to estimate the other amount

Gil if is no basis for making meliable estimate of Fainvalve less lost

there
to sell BA is measured by reference to take in use

Determining value in use

1110 Future Cash Flows Pulled to Presentvalue using Pnetax Discountrides

Estimates of Future Cash Flows thetides

f fath Inblows projections boom continuing use of the asset

2 Cash outflows necessary to generate cash inblows from continuing use
Cash outflows includes
3 day to day servicing costs of the meet
4 TerminalValves

Estimates of Future Cash Flows Excludes

1 Excludes Receivables Payable Provisions Pensions etc

2 Cash Inblowsfootblows from financing activities
3 Income tax receipts and payments
h Future Restructuring to which entity is not yet committed
5 Future Improvements on Enhancement
of asset's performance
it Future cash Flows should be forecasted on the basis of current
condition and not future condition

Future can Flows Estimated boy may 5years unless justified

Reversalof Impairmentloss
Impairment loss recognised earlier can be reversed if there is an indication
of Reversal of impairmentloss
External Indication
e Asset's market value has increased significantly
2 significant changes with favourable effect on technological market
economic on legal environment
3 market interestmates market rate of return have decreased during the
period and those decrease likely to reduce discount rates

Internal Indication
I Evidence is available from internal reporting that indicates economic
performance of the alley will be better than expected

I Cast incurred to Improve on enhance the asset's performance on

restructure the operation to which the asset belongs

In allocating a Reversal of impairment loss for an asset on equ the

f a of an asset Shall not be increased above the lower of
Its Recoverable Amount
lower
fitthe ca determined had there been no impairmentloss
recognised in Prion periods

Not An Impairment loss recognised ban goodwill shall not be reversed

in a subsequent period gie Reversal of goodwill is prohibited 7

Note A Reversal of an equ shall be allocated

impairment loss lion a
of the unit except
to the assets for goodwill Pmomata with the
cannying Amount of those assets
alolé Impairment loss is not reversed just because ofthe passage of
time even if the Recoverable amount of the asset becomes higher than
its cannying Amount
E9 9741994 957
Costof Asset41.9.017 roo on h life 596ns
Dept 11147 1209
1 C A 9712 02 Istyrard soon

FY Ces 70 Ch

FutureCashFlows 31303 11304 717 05 313 06

15m log
I valve in usesstz.az fg.zlen 94409
I Recoverable Amount 75.31
i Impairmentloss 80 75.31 4.69
1 BC A 7531 Istynardy

Suppose Nextyear All turbo remain the same

l A often Dept 7571 975.31 gyms 56.48 42nd ed

313 04 11.3.05 71.7 06

tilde i use 9311037 67.84 Joey hoon 109
TE
Now Since Vcu is greater then C A
that the increase in Yiu is just due to passageof time
Hence Reversal of Impairment loss should not be done
 212000
RA

RA 704000

NetAsset Goodwill Total

STAMM 2001 320000 80000 400000

Y Oephzyn 9320000 424M 320007 1320007

pay
288000 80000 368000
76000 800007 1560007
Impairment loss
Are A 171.3 03 212000 NIL 212000

A Depthing 9212000 429957 235551 235551

yn
CA 1313 057 188495 188445
Revereafoffmprog 67555 67555
256000 256000
Depagthyr 2560007 16000
y 16971
working
C A 1313 037 368000
212000
RA 131.3 03
156000
I loll
I loss ofE 156000 firstly allocated to Goodwill and the Balance to oken
Mlf on a Pro nola Bon's

71.705 Reversal

c a of asset had there been no impairment

Cost
of I W A fi 901 320000
I Depthyn 97200 xu 64000

256000
CA 317 05
7 lower is E 25600
R A 9317057 30400

i Beverly imp loss 256000 188445

of
67555
 CG V
MachA MachB

Inventory goodwill
 wheat any

950000

K
I I FY 973 450000
The Inventory has mended a remind ma themecovenaglevdreoffhuis

TI mooetasoooo a
A
310000

3 StMarich2018 A B
cost of Machinery A Machinery B 1000000
11.4.2013 509998mg

50000
Dep for gyms
91000000 454757 4750007
loyns
wept for 34ns 95000844,434757 150000

CA'd Machinery A 913431320187 525000 350000

2007 50000
 95001 5000
To calculate Impairment1055 300006
yoooo
Machinery A
lil valve in use D v of Future cash Flows P v of Resided value
151 2nd 3rd am 5m
Illumined 150000 100000 100000 150000 100000
489650 50000

roof
Gil Fainvalueless lost to sell 700000 150000 25000 75000
450000

I Recoverable Amount 489650

I Impairment loss 35350

of machinery A 4525000 4896507

Entire ego
Tmp loss ofChu 12250000 1000000 1225000

CA 9377187 Impairmentloss Rica 131720187

525000 35350 489650

Machinery B 350000 39650 710350

Inventories 200000 A 200000

Goodwill
150000 1500007 nel
225000 225000 1000000
489150 50000
Dept Gor2018 19 sang
c quint Dep 191.3 2011

Machinery A 489650 87930 401720 310334m

a B 310350 44336 266014
Inventories 200000
200000867734
fl C A of asset had there been no Impairment loss
f g hadtherebeen Lowen of CA AR A
noempainment RA
Machinery A 430000 4560009 430000

Machinery B 300000 3100009 300000

Inventories 200000 200000 X
930000

I Maximum Reversal of machine A opto E 430000 Machine Dapto270000

I Reversal 430000 401720 300000 266014

ofimpairmentCost
28280 33986
62266

fA of machine AC 31.3.19 7 430000

4 300000
Y B 31 3 19
 O
O 8 t

Not to consider

0
2005704
2004 05 2005 06 2006 07 607018

solani 200 206 212 219 225

Quantity ooooh 10500h 110254 1157647 121554

Coffit 160 162 165 168 171

Conflot 400000 462000 518175 590376 656770

maintenance 800007
Residual yall 80000
400000 962000 468175 590370 736370

Tendest
f late in eel 2073169
 É É

1A 1413 20007 61601000

1600000 960001
Fil CT's 31401 509000

valve invel
I 1st ya at 4
588263 192000 120000 114000
276000
x
Ty
i BA Highly 588236

i Impairment log 660000 588276 71764

I out of Floss of271764 36000 debited to Rlaf lupin and
balance 2 31764 charged to plc
Towering

impairmentlots 71764
to Asset piggy

RevoltSurplus 36000

t 35764

to impairment Cod 71704

Revised Depreciation often imp loss

RC A 1713 001 588236
Dep nextyear 9588247 1470597

441177

compensation from govt will be recounted when it becomes receivable

 O
216000,34000
236111 7196111
be
Y today I apttomadm

34000 93446 1437 234000 1889 32111

I Tahyeah I CA 240000 Loya

240007
H Dutton 2471429449,624ns
31 Dec 9092 Ketone Reva 2160001184m
7 CA
Reva Gain oct 34000
2500001184ns
tank R.CA GattenRevd
a Dept for Iyer 92598 7 138897
31 0107097 CA 236111 17hm
a Impairment lol 1361117

1 01
R.CA
art
90000

out of Impairment toll of 2136111 Revd surplus of 534000 Should be

debited first and then balance of 7102111 Charged to Pk

Imp loll 176111 Rerafsurplylock 34000

to asset 10411
Ple
To Tmp Cold 136111
I f A 131 Dec41427 240000 12000 12000 7 216000
Reva limply fi TanYeon 9250000 2160007 7 7h00

ii CA 31Decyear Before Imp 1250000

Empson 7 236111

iii Emp Cos 931 Dec 4477 9236111 1000007

y 176111

in Dep 931 ace glory tonof loom I 10000

foot
800

Pantin
1001

fall I
Roa 2000 thousand
stoomasmatroonisatiijjiaoomineatist
on
23700 Holford

Impairment loll 3700 Morland sooo thousand

too thousand
 I out of Imp lots of 21700 thousand 21000 thousand allocated to
both recognised andnational Goodwill then Balance too thousand
allocated to omen wet Assets

Nease Goody Recognised Goodell national

fA 2700 800 200

560 200
too 8007 7 Plc
ImpLol 190Cnet
nil
RecA 2180 are

Impairment toes parental act

800 200
Goodwin
athena too 560 140
1760 140
Mm Impainmet sooo
pain
thousand
RA 2800
f A 2700 thousand 800 sot 2001201

3700 thousand

I Imp foll 3700 2800 900

8900 impairment Cold allocated to Goodwill
fully

Goodwill
recopied
Nagase foy
alatiofoy

lA 2700 800 200

I 6541900 7201,810 1807
27004 800
f A often Impairment 2780
 Impairment toes Parent act
720 80
Goodwin
omenasset
720

ExtraGYM INN forever

Netaut 72700
and 10 11
11 I Tain impaired soo
Netasettmpared Foo

Panet
Soo It

4360 It
I R.CA CA Im
3500 150

WE

got
 can 2 RA 2808
Netasset 72700 net need will not be impaired
Goodwin 80 1 807 Goodwill should be too
3500 a
cA
Partial gain a sot of100

800180 so
stop of alwine
720g

t Goodwill so
4c a net asset 12700
500 500 500
27802
Practice

Double
Double

a
 Chua lab cave
CA 500 Hoyas 750120447 1100120yd
weights 500 1500 2200
Allocate corporate 944314 6007
711 214 315
4600 1707 2
faux o 1600 07
CA of 190 571 964 1915

R A of Chu Goo 900 1400

I Imp loss 64 15
oftenmeet conp.nu OfhenAhet Compared

64
78 64
46 15
15 15 71,55

58 11 12 3

Cava Cava Cave Gap.X

Revised CoA 500 750 1100

50 42 219 14 20
Too 1088 315 3 3120

Cava Cava Cave Gap.x Comp.y Total

C.AM ApeyN 500 700 1088 583 200 3071
t t t t
RA fancy 3200
Since 1 A 7C A
i No Further Impairment
1 901 Foneyor
Coneidenation 1801 2100

Net 201 20 91500 900

2400

A I WA 115007

Goodwill Partial 900

Goodwill of 900

Parentown said'm
asset

Yg
I N A 1500 1 91
Subsidiary
subsidiary Goodwin hoo Partial

31StMarch 2002
Serbs IN A 1350
Goodwill 4001807
1750
Fonseca
C A of Asset 97504400 100 1850
ooo
R'A ofasset
i 850
top cross
NA Goodwin 80 1 Goodnight

C A of asset 1350 400 100

pay yo
I'Coll 12501 not to 1h00 1007

1000

Imp loss Parent wee

Goody boo x
IN A 950 280 to
680 To

peace
 PI
my

É
we

Consideration x2 Il 32000084 4 th 1280000

9800000

Wet 9200000 shxt 919h 280000

A Fix of IWA 1300000

Goodwin Full 260000
 91 Cave guy
600000 550000 450000
f a
e
Goodwill 921211 109000 1040000 52000
654000 502000
CA of Cau oftenGloria 709000

RA 710000 650000

I Cold x 4000 44dg

1902 Safire I loss of E hooo allocated to Goodwill

caus
I out of I lull off 102000 Goodwin should beimpaired bint by 852000
and then balance goooo to other assets

I loll allocated to net 2106000 x 207 21206

calmof closing Goodwill

Goodwill 260000
560007
A Tmp 940004520007
Goodwin after Impairment 204000

Gla of E NA
CA 4600000753000074500007 1600000

Imp Cold 9500007 500007

d A after Imp 1550000

 PetoneImpairment Impairment afterimpainmet
C A gasser 1000 3507 650
FB 800 800
MMM
Taxabletemp Diff 200 9507
Deductibniend Diff 150
DTCCMA 60 105 45