IAS 36: guides and impairment test model

Plain-English guides to IAS 36, each with a worked example, and an impairment test model with a sensitivity grid.

IAS 36 requires assets to be carried at no more than their recoverable amount. 5 guides and 1 Excel model, all free.

Excel model

Each workbook comes filled in with a worked example, so you can see how it works before replacing the figures with your own. Cells to edit are marked.

Impairment test modelExcel downloadValue in use with a terminal value, the impairment test with goodwill allocated first, and a discount rate and growth sensitivity grid. IAS 36.

5 guides

IAS 36 impairment of assets explained3 minute readIAS 36 impairment of assets explained: indicators, recoverable amount, value in use and fair value less costs of disposal, impairment losses and reversals.
Calculating value in use3 minute readHow to do a value in use calculation under IAS 36: cash flow projections, the pre-tax discount rate, terminal value and sensitivity, with a worked example.
Cash-generating units and corporate assets3 minute readHow to identify a cash-generating unit under IAS 36: independent cash inflows, active markets, corporate assets and examples from retail and transport.
Goodwill impairment testing3 minute readHow the IAS 36 goodwill impairment test works: allocating goodwill to cash-generating units, the annual test, allocating losses and non-controlling interests.
Reversing an impairment loss3 minute readWhen IAS 36 allows the reversal of an impairment loss: indicators, the cap at depreciated historical cost, goodwill, revalued assets, with a worked example.

About these guides

The guides explain the standard in our own words, with our own examples, and point to the paragraphs they rely on. They are general information, not advice for your situation. Read them alongside the standard itself, and check when your regulator adopts it.