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IAS 36 Impairment added to the cost of another asset?

Posted: 09 Jul 2021, 13:22
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.

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 09 Jul 2021, 13:32
by Marek Muc
Hi, no, the impairment charge cannot be recognised in the cost of another asset, see paragraphs IAS 36.60-61

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 14 Jul 2021, 15:44
by JRSB
How about, in advance, revising the useful life to very short such that large depreciation is charged....and no impairment

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 14 Jul 2021, 17:38
by Marek Muc
that's clever 8-)

@zaur-511, what's the trigger for the impairment? did the equipment broke down or something?

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 16 Jul 2021, 11:12
by zaur-511
Thank you for your attention. Yes. The asset broke down.

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 16 Jul 2021, 18:33
by Marek Muc
well, in that case there is no room for accelerated depreciation, what do you think JRSB?

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 16 Jul 2021, 19:40
by JRSB
Not in good conscience!

Re: IAS 36 Impairment added to the cost of another asset?

Posted: 06 Aug 2021, 18:53
by Lasa1
Would it be correct to report the impairment charge as an abnormal production cost in COGS ?