IAS 36 -disclosure

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123_
Posts: 4
Joined: 20 Feb 2021, 21:56

IAS 36 -disclosure

Post by 123_ »

Hey there

Could anyone help me regarding the interpretation of a few aragraphs in IAS 36?

1)
Paragraph 130/131:
-What is the difference between these two paragraphs and how can a company decide to apply 130 instead of 131? I am asking because 131 states that each CGU must disclose the respective information in case of an impairment loss or reversal. Therefore I don't understand how 131 should be relevant if one must disclose in all cases according to 130

2)
Paragraph 134:
-134: What does significant mean? Is this term defined somewhere or subjective?
-134 d) i) Is it sufficient to only mention the discount rate and the growth rate? If not, how many key assumptions are required and how detailed?
-134 d) ii): Is it sufficient to state for each key assumption that it is based on internal and external information or is a specific and detailled description of the approach for each key assumption required (e.g. for discount rate: based on CAPM with risk free rate of XY etc.; growth rate based on expected gdp rate etc.,)

3)
Some companies don't disclose information if goodwill is barely relevant in comparison with the total amount of the balance sheet. Does there a rule exist which allows one to opt out from disclosing (e.g. if goodwill is < 1% of the total amount of the balance sheet)?

4)
Do companies have to disclose the information under the respective note section (e.g. "goodwill" or "intangible assets") or is it allowed to disclose the information anywhere in the notes (e.g. under "accounting principles"?)

Thank you very very much for your help!
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Marek Muc
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Re: IAS 36 -disclosure

Post by Marek Muc »

1) IAS 36.131 applies to impairment losses that are individually immaterial and therefore disclosure required by IAS 36.130 was not provided

2) 'Significant is subjective', WACC and PGR are not enough, see example 9 to IAS 36 and this page:
https://ifrscommunity.com/knowledge-bas ... isclosure/

Look at what your company discloses when preparing external management information for investors, the same key ratios are probably applicable to impairment disclosure
You can also browse through other financial reports, if you find some interesting disclosures, please share them here :)

3) I would skip this disclosure if goodwill is immaterial, but percentage is irrelevant here, consider the absolute value of goodwill

4) the specific place is not prescribed, but you cannot obscure that information through eg putting it in irrelevant note such as accounting policies ;)

https://ifrscommunity.com/knowledge-bas ... iderations
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