Impairment tests
Monitoring the value of business assets is governed by IAS 36 which includes all asset impairment provisions not covered by a specific standard. Companies must, at the close of their fiscal year and / or when an indication of impairment is found, proceed to compare the recoverable value of their assets at their net book value.
The application of fair value is at the heart of debate for several years. Beyond the ongoing discussions, it is necessary to master the process and calculations to best assess the value of an asset.