IAS 36 Impairment added to the cost of another asset?

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zaur-511
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IAS 36 Impairment added to the cost of another asset?

Post by zaur-511 »

Dear colleagues, just wanted to know your opinion.

If the fixed asset which depreciation was added to the cost of production was found to be impaired. Can I recognize the impairment amount as part of cost of production as well, or it must be treated in other way?

Thank you in advance.
Waiting forward for your soonest response.
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Marek Muc
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Re: IAS 36 Impairment added to the cost of another asset?

Post by Marek Muc »

Hi, no, the impairment charge cannot be recognised in the cost of another asset, see paragraphs IAS 36.60-61
JRSB
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Re: IAS 36 Impairment added to the cost of another asset?

Post by JRSB »

How about, in advance, revising the useful life to very short such that large depreciation is charged....and no impairment
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Marek Muc
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Re: IAS 36 Impairment added to the cost of another asset?

Post by Marek Muc »

that's clever 8-)

@zaur-511, what's the trigger for the impairment? did the equipment broke down or something?
zaur-511
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Re: IAS 36 Impairment added to the cost of another asset?

Post by zaur-511 »

Thank you for your attention. Yes. The asset broke down.
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Marek Muc
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Re: IAS 36 Impairment added to the cost of another asset?

Post by Marek Muc »

well, in that case there is no room for accelerated depreciation, what do you think JRSB?
JRSB
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Re: IAS 36 Impairment added to the cost of another asset?

Post by JRSB »

Not in good conscience!
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Lasa1
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Re: IAS 36 Impairment added to the cost of another asset?

Post by Lasa1 »

Would it be correct to report the impairment charge as an abnormal production cost in COGS ?
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