ACCOUNTING FOR ASSET IMPAIRMENT PROCESSES
Keywords:
Asset impairment; accounting standards; IAS 36; fair value; recoverable amount; financial reportingAbstract
Asset impairment accounting plays a crucial role in ensuring the reliability and transparency of financial statements. Impairment occurs when the carrying amount of an asset exceeds its recoverable amount, leading to a loss that must be recognized in accounting records. This article examines the accounting processes related to asset impairment based on International Financial Reporting Standards (IFRS), particularly IAS 36 Impairment of Assets, and relevant accounting literature. The study analyzes the identification of impairment indicators, measurement of recoverable amount, recognition of impairment losses, and disclosure requirements. The results demonstrate that proper impairment accounting enhances the accuracy of financial reporting and supports informed decision-making by stakeholders.
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