while determining impairment loss, carrying value is compared with recoverable value. what is recoverable value?
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JEANNETTE KAYIREBWA -
Recoverable amount: the higher of an asset's fair value less costs of disposal (sometimes called net selling price) and its value in use.
In reply to JEANNETTE KAYIREBWA
Re: discussion of how impairment loss is determined
Recoverable value is the value of the asset once sold at the market, it is obtained by the higher fair value less cost of sales and value in use . According to the IAS 38 state that non current asset should not be recognized in the statement of financial position at the value greater it's recoverable value.
In reply to JEANNETTE KAYIREBWA
Re: discussion of how impairment loss is determined
by MPAGAZEHE Emmanuel -
The recoverable value is compare the higher, Fair value(FV)-Cost of sale and value in use the higher of two is recoverable value
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by HOSIANE IGIHOZO -
Is greater of an asset fair value less cost to sell or it value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JEAN PIERRE KABERUKA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ALPHONSINE KARISAGYE -
Recoverable value:is the higher of an asset's fair value less cost of disposal.
In addition,if fair value less cost of disposal can not be determined, recoverable amount is value in use.
In addition,if fair value less cost of disposal can not be determined, recoverable amount is value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by theogene abazarama -
The recoraveble value , the amount received when you campare carrying value and fair value of net asset .
Fair value less cost of disposal plus value in use .
Fair value less cost of disposal plus value in use .
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ANITHA UWONAHISEMO -
Recoverable Amount: is the higher of fair value less costs to sell and value in use .
Also is assessed only when there is an indication that the asset may be impaired.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by OLIVIER ISHIMWE -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
The recoverable amount refer to the present value of the expected cash flows that are to arise from the sale or use the asset and is calculated as greater of the two amount,namely,the fair value of the assets as reduced by the related selling costs,and value in the use of such assets
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by DIANE NAMAHORO -
definition of the impairment loss is a decrease in net carrying value, the acquisition cost minus depreciation, of an asset that is greater than the future undisclosed cash flow of the same asset
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by CLAUDINE UWIMANA -
Recoverable amount of an asset or cash generating unit is the higher of its fair value less cost of disposal and its value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ROSINE NIYONKURU -
A loss on impairment is recognized as a debit to Loss on Impairment (the difference between the new fair market value and current book value of the asset) and a credit to the asset. The loss will reduce income in the income statement and reduce total assets on the balance sheet.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by michel hagenimana -
Is a higher amount than a fv of an asset when you less selling charges
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by DIANE NAMAHORO -
Impairment loss: the amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount
Carrying amount: the amount at which an asset is recognised in the balance sheet after deducting accumulated depreciation and accumulated impairment losses
Recoverable amount: the higher of an asset's fair value less costs of disposal* (sometimes called net selling price) and its value in use
Carrying amount: the amount at which an asset is recognised in the balance sheet after deducting accumulated depreciation and accumulated impairment losses
Recoverable amount: the higher of an asset's fair value less costs of disposal* (sometimes called net selling price) and its value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JEAN FELIX CYUZUZO -
It is higher of (net asset fv less cost of sell) or its value in use ,
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by DOREEN BATAMURIZA -
recoverable value is the higher of fair value less costs to sell .and value in use the carrying value of a fixed asset is compared with recoverable amount to find out impairment loss and the recoverable value of asset refers to the present value of expected cash flows that a rise from the sale or use of the asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Francis Mudaheranwa -
Recoverable value is the higher of fair value (market value) of an asset less cost of sales and its value in use(present values of an asset)
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable value : This refers to the higher of market value of an asset you can get on the sale of that asset less the cost to dispose that asset and value in use of that asset
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by EZCHIEL NIYOMUKIZA -
Recoverable value is value at which the asset (s) could fetch once sold at the market which obtained by taking the higher of "Fair value less cost to sell and Value in use". And regarding the IAS 37, Non Current Assets should not be recognized in the statement of financial position at the value greater it's recoverable value (amount).
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Paul Gakwerere -
Is determined by the market value less disposal amount of asset compared the value in use . The great one is called recoverable amount
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable amount of asset is the higher of its fair value less cost of disposal and its value in use
Recoverable value is the greater of na asset's fair value less cost to sell or it's value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by LAUBEN HABUMUREMYI -
By here,,,recoverable value is the value of the assets once sold at the market,it is obtained by the higher of fair value less cost to sale and value in use as IAS 38 non current asset should not be recognized in the statement of financial position at the value greater its recoverable value.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset
We say that there is impairment loss when the carrying amount is greater than recoverable value.
Recovareble value: is high value in use compare with net realisable value.
In other words: is refer to the residual value of an asset at the end of useful life of asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by SANDRINE NIKUZE -
Recoverable value is the higher of fair value of an asset less cost of disposal and it's present value
In reply to SANDRINE NIKUZE
Re: discussion of how impairment loss is determined
by DANIEL DUSENGIMANA -
Impairment loss: the amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Impairment of loss when to do substract the recoverable amaunt from the carrying cost to determine amount you can list as a loss
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by LAUBEN HABUMUREMYI -
recoverable value is the higher amount of its fair value less cost to sell or its value in use. The cost to sell is exactly what it sounds like — the amount it costs you to sell the asset. This might include things such as brokerage fees, advertisement costs, and the cost to transfer ownership.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
An asset's recoverable amount is the higher value of its fair value less cost to sell or its value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by FILLETTE RANGIRA -
asset’s recoverable value is the higher amount of its fair value less cost to sell or its value in use. The cost to sell is exactly what it sounds like — the amount it costs you to sell the asset. This might include things such as brokerage fees, advertisement costs, and the cost to transfer ownership.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by NICOLE KABAKESHA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to NICOLE KABAKESHA
Re: discussion of how impairment loss is determined
An asset's recoverable amount is the higher value of its fair value less cost to sell or its value in use in simple wards is only that.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable value is the higher of either the asset's future value for the company or the amount it can be sold for, minus any transaction costs.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by LILIANE MUTONI -
The recoverable amount of an asset or a cash generating unit is the higher of its fair value less cost of disposal and its value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ERIC NZAYISENGA -
Recoverable value is the higher the fair value less Cost of sales and value in use the, higher in two is recavorable amaunt
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
impairment loss is happens when the value of an asset is decrease so that recoverable is less than carrying cost you can write difference. where recoverable amount is greater than an asset's fair value less costs to sell its value of future cash flows expected to be delivered from an assets.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
It is the present value of expected cash flow that arise from sale or use of the asset .
Recoverable amount is greater of an asset fair value less cost to sell or its value in use .
Recoverable amount is greater of an asset fair value less cost to sell or its value in use .
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JOSELINE UMUGWANEZA -
Recoverable value :is the higher of fair value of asset less cost of disposal and its value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by VIVINE NSABIYERA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset. Thus, the concept essentially focuses on the greatest value that can be obtained from an asset, either by selling or using it.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by SANDRINE Wibabara -
Recoverable amount is used when we are doing impairment test of an asset. Recoverable amount is compared to the cost of the asset. If it is lower, then value of the asset is impaired. If the value subsequently goes higher than the cost, gain on reversal can be recognized up to the value of the asset cost.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ELIPHASE MUNEZERO -
The recoverable amount of an asset refers to the present value of the expected cash flows that are to arise from the sale or use of the asset and is calculated as greater of the two amounts, namely, the fair value of the asset as reduced by the related selling costs, and value in the use of such assets.
Recoverable amount is the higher of value-in-use OR net realizable value (NRV, fair value less cost to sell). Value-in-use can be found by calculating the forecasted discounted cash flow that can be generated by the specific asset. While NRV is basically the fair value deducted by costs needed to sell the asset. Fair value can be found by referring to the IFRS 13 - Fair Value.
Recoverable amount is used when we are doing impairment test of an asset. Recoverable amount is compared to the cost of the asset. If it is lower, then value of the asset is impaired. If the value subsequently goes higher
Recoverable amount is the higher of value-in-use OR net realizable value (NRV, fair value less cost to sell). Value-in-use can be found by calculating the forecasted discounted cash flow that can be generated by the specific asset. While NRV is basically the fair value deducted by costs needed to sell the asset. Fair value can be found by referring to the IFRS 13 - Fair Value.
Recoverable amount is used when we are doing impairment test of an asset. Recoverable amount is compared to the cost of the asset. If it is lower, then value of the asset is impaired. If the value subsequently goes higher
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JULES SIBOYINTORE -
Recoverable Amount: is the higher of fair value less costs to sell and value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by THEOGENE TWIZERIMANA -
Recoverable value is the higher of an asset's fair value less costs of disposal* (sometimes called net selling price) and its value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Sibomana Clement -
Recoverable amount: the higher of an asset's fair value less costs of disposal (sometimes called net sales.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by VINCENT NIYONZIMA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Placide KABALISA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset. Thus, the concept essentially focuses on the greatest value that can be obtained from an asset, either by selling or using it. The recoverable amount
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by GASTON ISHIMWE -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by VIVENS NYANDWI -
Recoverable amount: is the higher of an asset's fair value less costs of disposal (sometimes called net selling price) and its value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ETIENNE KURADUSENGE -
asset’s recoverable amount is the higher dollar amount of its fair value less cost to sell or its value in use. The cost to sell is exactly what it sounds like — the amount it costs you to sell the asset. This might include things such as brokerage fees, advertisement costs, and the cost to transfer ownership.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
To determine the fair
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
To determine the fair
Recoverable value is the greater of na asset's fair value less cost to sell or it's value in use
asset’s recoverable amount is the higher dollar amount of its fair value less cost to sell or its value in use. The cost to sell is exactly what it sounds like — the amount it costs you to sell the asset. This might include things such as brokerage fees, advertisement costs, and the cost to transfer ownership.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
The value in use refers to the present value of future cash flows — basically, how much money you could make if you kept the asset. You need to calculate both of these things to determine the recoverable amount, because it’s the lesser of the two.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Simply terms, the recoverable amount is the highest value that can be obtained from an asset. We can think of two general ways we can obtain value from an asset: (a) from using that asset in the business or (b) by selling it to someone else. The value of (a) is the present value of expected future cash flows from using the asset. The value of (b) is the fair value of the asset less costs to sell the asset. The higher amount from these two alternatives is the recoverable amount.
The recoverable amount is used in the test
The recoverable amount is used in the test
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Rosette Mukankindi -
Recoverable amount is the greater of an asset's fair value less cost to sell , it's value in use. Value in use refers to the present value of future cash flows exectry to be delivered from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by SANDRINE MUCYO -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by CYRIAQUE HAKIZIMANA -
Recoverable value is the highest value when we compare 2 options: ( fair value -cost of dispoal) and the value in use of the asset .
The highest value will be the recoverable value
Example:when the fair value is frw 2000 and cost of disposal is frw 800 while the value in use of the asste is frw 1500 .We may have fair value minus costof disposal which is frw 2000-frw 800=1200 few while the value in use is 1500 the the recoverable amount is frw 1500 because it is the highest amount compared to 1200
The highest value will be the recoverable value
Example:when the fair value is frw 2000 and cost of disposal is frw 800 while the value in use of the asste is frw 1500 .We may have fair value minus costof disposal which is frw 2000-frw 800=1200 few while the value in use is 1500 the the recoverable amount is frw 1500 because it is the highest amount compared to 1200
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable value is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by EMMANUEL MANIRARORA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an assets .
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by DANIEL DUSENGIMANA -
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset. Thus, the concept essentially focuses on the greatest value that can be obtained from an asset, either by selling or using it. The recoverable amount concept is used in the international financial reporting standards framework.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
Recoverable amount is the higher of the asset's fair value less cost of disposal and it's value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by ROSE IRIZABIMBUTO -
Recoverable amount is the great of an asset 's fair value less costs to sell ,or its value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by JUSTIN IYAKAREMYE -
Recoverable amount is believed to be the greater of an asset's fair value less costs to sell, or its value in use. While Value in use refers as the present value of future cash flows which is expected to be derived from an asset!!!
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by XAVIER MUTUYIMANA -
recoverable value is the higher of fair value less costs to sell .and value in use the carrying value of a fixed asset is compared with recoverable amount to find out impairment loss and the recoverable value of asset refers to the present value of expected cash flows that a rise from the sale or use of the asset.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by Mujyarugamba Donath -
How Is Impairment Loss Calculated?
Impairment occurs when a business asset suffers a depreciation in fair market value in excess of the book value of the asset on the company's financial statements.
Under the U.S. generally accepted accounting principles, or GAAP, assets that are considered "impaired" must be recognized as a loss on an income statement.
KEY TAKEAWAYS
Impairment occurs when a business asset suffers a depreciation in fair market value in excess of the book value of the asset on the company's financial statements.
Under the U.S. generally accepted accounting principles (GAAP) assets considered impaired must be recognized as a loss on an income statement.
The technical definition of impairment loss is a decrease in net carrying value of an asset greater than the future undisclosed cash flow of the same asset.
Understanding Impairment Loss
The technical definition of the impairment loss is a decrease in net carrying value, the acquisition cost minus depreciation, of an asset that is greater than the future undisclosed cash flow of the same asset. Impairment occurs when assets are sold or abandoned because the company no longer expects them to benefit long-run operations.
This is different from a write-down, though impairment losses often result in a tax deferral for the asset.1 Depending on the type of asset being impaired, stockholders of a publicly held company may also lose equity in their shares, which results in a lower debt-to-equity ratio.2
How Is Impairment Loss Calculated?
Calculating Impairment Loss
The first step is to identify the factors that lead to an asset's impairment. Some factors may include changes in market conditions, new legislation or regulatory enforcement, turnover in the workforce or decreased asset functionality due to aging. In some circumstances, the asset itself may be functioning as well as ever, but new technology or new techniques may cause the fair market value of the asset to drop significantly.
A fair market calculation is key; asset impairment cannot be recognized without a good approximation of fair market value. Fair market value is the price the asset would fetch if it was sold on the market. This is sometimes described as the future cash flow the asset would expect to generate in continued business operations.
Another term for this value is "recoverable amount." Once the fair market value is assigned, it is then compared to the carrying value of the asset as represented on the company's financial statements. Carrying value does not need to be recalculated at this time since it exists in previous accounting records.
If the calculated costs of holding the asset exceed the calculated fair market value, the asset is considered to be impaired. If the asset in question is going to be disposed of, the costs associated with the disposal must be added back into the net of the future net value less the carrying value.34
Impairment losses are either recognized through the cost model or the revaluation model, depending on whether the debited amount was changed through the new, adjusted fair market valuation described above. Even when impairment results in a small tax benefit for the company, the realization of impairment is bad for the company as a whole. It usually represents the need for an increased reinvestment.
Impairment occurs when a business asset suffers a depreciation in fair market value in excess of the book value of the asset on the company's financial statements.
Under the U.S. generally accepted accounting principles, or GAAP, assets that are considered "impaired" must be recognized as a loss on an income statement.
KEY TAKEAWAYS
Impairment occurs when a business asset suffers a depreciation in fair market value in excess of the book value of the asset on the company's financial statements.
Under the U.S. generally accepted accounting principles (GAAP) assets considered impaired must be recognized as a loss on an income statement.
The technical definition of impairment loss is a decrease in net carrying value of an asset greater than the future undisclosed cash flow of the same asset.
Understanding Impairment Loss
The technical definition of the impairment loss is a decrease in net carrying value, the acquisition cost minus depreciation, of an asset that is greater than the future undisclosed cash flow of the same asset. Impairment occurs when assets are sold or abandoned because the company no longer expects them to benefit long-run operations.
This is different from a write-down, though impairment losses often result in a tax deferral for the asset.1 Depending on the type of asset being impaired, stockholders of a publicly held company may also lose equity in their shares, which results in a lower debt-to-equity ratio.2
How Is Impairment Loss Calculated?
Calculating Impairment Loss
The first step is to identify the factors that lead to an asset's impairment. Some factors may include changes in market conditions, new legislation or regulatory enforcement, turnover in the workforce or decreased asset functionality due to aging. In some circumstances, the asset itself may be functioning as well as ever, but new technology or new techniques may cause the fair market value of the asset to drop significantly.
A fair market calculation is key; asset impairment cannot be recognized without a good approximation of fair market value. Fair market value is the price the asset would fetch if it was sold on the market. This is sometimes described as the future cash flow the asset would expect to generate in continued business operations.
Another term for this value is "recoverable amount." Once the fair market value is assigned, it is then compared to the carrying value of the asset as represented on the company's financial statements. Carrying value does not need to be recalculated at this time since it exists in previous accounting records.
If the calculated costs of holding the asset exceed the calculated fair market value, the asset is considered to be impaired. If the asset in question is going to be disposed of, the costs associated with the disposal must be added back into the net of the future net value less the carrying value.34
Impairment losses are either recognized through the cost model or the revaluation model, depending on whether the debited amount was changed through the new, adjusted fair market valuation described above. Even when impairment results in a small tax benefit for the company, the realization of impairment is bad for the company as a whole. It usually represents the need for an increased reinvestment.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by DENYSE UWAYISENGA -
Impairment loss, carrying value is compared with recoverable value . Recoverable value is the higher of fair value less costs to sell and value in use.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by PASCAL NTEZIMANA -
impairment of an asset is determined by comparing carrying
amount of Asset and the maximum between recovereble amount( Fair value of Asset -cost of sales) and value in use. means if the carrying of amount asset is less than recovereble amount so the asset is impaired. otherwise if currying amount is greater than recovereble amount so there is no impairment of that asset according to IAS 19 .
amount of Asset and the maximum between recovereble amount( Fair value of Asset -cost of sales) and value in use. means if the carrying of amount asset is less than recovereble amount so the asset is impaired. otherwise if currying amount is greater than recovereble amount so there is no impairment of that asset according to IAS 19 .
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by GASTON ISHIMWE -
Recoverable value is the highest value when we compare 2 options: ( fair value -cost of dispoal) and the value in use of the asset .
The highest value will be the recoverable value
Example:when the fair value is frw 2000 and cost of disposal is frw 800 while the value in use of the asste is frw 1500 .We may have fair value minus costof disposal which is frw 2000-frw 800=1200 few while the value in use is 1500 the the recoverable amount is frw 1500 because it is the highest amount compared to 1200
Picture of CHRISTELLA RUSANGANWA
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by CHRISTELLA RUSANGANWA - Thursday, 19 November 2020, 11:02 PM
Recoverable value is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
Picture of EMMANUEL MANIRARORA
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by EMMANUEL MANIRARORA - Thursday, 19 November 2020, 11:37 PM
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an assets .
The highest value will be the recoverable value
Example:when the fair value is frw 2000 and cost of disposal is frw 800 while the value in use of the asste is frw 1500 .We may have fair value minus costof disposal which is frw 2000-frw 800=1200 few while the value in use is 1500 the the recoverable amount is frw 1500 because it is the highest amount compared to 1200
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In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by CHRISTELLA RUSANGANWA - Thursday, 19 November 2020, 11:02 PM
Recoverable value is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset.
Picture of EMMANUEL MANIRARORA
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by EMMANUEL MANIRARORA - Thursday, 19 November 2020, 11:37 PM
Recoverable amount is the greater of an asset's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an assets .
Recoverable amount is the greater of an asset's fair value less costs to sell,or it's value in use
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by NARCISSE NKUNDIMANA -
Recoverable amount is the greater of an asset 's fair value less costs to sell, or its value in use. Value in use refers to the present value of future cash flows expected to be derived from an asset. Thus, the concept essentially focuses on the greatest value that can be obtained from an asset, either by selling or using it.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
The Recoverable value is the value of the assets once sold at the market, it is obtained by the higher fair value less cost of sales and value in use . According to the IAS 38 state that non current asset should not be recognized in the statement of financial position at the value greater it's recoverable value.
In reply to HITAYEZU Innocent
Re: discussion of how impairment loss is determined
by HODARI NGABONZIZA -
when an asset's currying value exceeds that of an asset's recoverable value, the surplus is referred to as an impairment loss. for a cash or an asset generating unit, the recoverable values are computed as the higher of the values in use and the fair value has the lower selling cost.