Calculation of recoverable amount (value in use)

Topics related to local GAAP, audit, laws and regulations affecting financial reporting, non-GAAP measures, investor relations, internal control over financial reporting, XBRL, pro-forma information and other similar topics.
Post Reply
sgaccountant
Posts: 9
Joined: 25 Feb 2022, 10:25

Calculation of recoverable amount (value in use)

Post by sgaccountant »

Hi All,

My company currently has a fully impaired subsidiary.

I would like to calculate the recoverable amount to assess if any impairment should be reversed.

Do you guys have any advice on how to calculate the recoverable amount using the value in use method? Do you measure the recoverable amount on pure cash basis (net cashflows movement) or on net profit basis?

Any good excel templates you can share?

Thanks!
User avatar
Marek Muc
Site Admin
Posts: 2201
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
Contact:

Re: Calculation of recoverable amount (value in use)

Post by Marek Muc »

why bother checking in knowledge base? :lol:

https://ifrscommunity.com/knowledge-bas ... mpairment/
sgaccountant
Posts: 9
Joined: 25 Feb 2022, 10:25

Re: Calculation of recoverable amount (value in use)

Post by sgaccountant »

wow that's very useful!!
JRSB
Trusted Expert
Posts: 907
Joined: 01 Mar 2020, 01:10
Location: UK

Re: Calculation of recoverable amount (value in use)

Post by JRSB »

how did you determine it was impaired in the first place, presumably not by assessing cash flows...
User avatar
Marek Muc
Site Admin
Posts: 2201
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
Contact:

Re: Calculation of recoverable amount (value in use)

Post by Marek Muc »

Maybe the previous accountant impaired it ;)
Post Reply