Calculation of recoverable amount (value in use)

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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!
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Marek Muc
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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
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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...
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Marek Muc
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Re: Calculation of recoverable amount (value in use)

Post by Marek Muc »

Maybe the previous accountant impaired it ;)
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