chuẩn mực kế toán quốc tế ias 36

IAS 36
Case Study 1
Facts
An entity has purchased the whole of the share capital of another entity for a purchase
consideration of $20 million. The goodwill arising on the transaction was $5 million. It was
planned at the outset that the information systems would be merged in order to create significant
savings. Additionally the entity was purchased because of its market share in a particular
jurisdiction and because of its research projects.
Subsequently the cost savings on the information systems were made. The government of the
jurisdic-tion introduced a law that restricted the market share to below that anticipated by the
entity, and some research projects were abandoned because of lack of funding.
Required
Explain any potential indicators of the impairment of goodwill.
Case Study 2
Facts
An entity is preparing its financial statements for the year ending November 30, 20X5. Certain
items of plant and equipment were scrapped on January 1, 20X6. At November 30, 20X5, these
assets were being used in production by the entity and had a carrying value of $5 million. The
value-in-use of the asset at November 30, 20X5, was deemed to be $6 million, and its fair value
less costs to sell was thought to be $50,000 (the scrap value).
Required
What is the recoverable amount of the plant and equipment at November 30, 20X5?
Case Study 3
Facts
An entity is reviewing one of its business segments for impairment. The carrying value of its net
assets is $20 million. Management has produced two computations for the value-in-use of the
business segment. The first value ($18 million) excludes the benefit to be derived from a future
reorganization, but the sec-ond value ($22 million) includes the benefits to be derived from the
future reorganization. There is not an active market for the sale of the business segments.
Required
Explain whether the business segment is impaired.

Case Study 4
Facts
Management of an entity is carrying out an impairment test on an asset. The posttax market rate
of return from the asset is 7% and profits are taxed at 30%. Management intends to use the
posttax rate of return in discounting the posttax cash flows from the asset of $2 million, as
management says it will make no difference to the calculation of value-in-use.
Required
Explain whether the use of the posttax rate is acceptable in the above circumstances.
Case Study 5
Facts
A manufacturing entity owns several vehicles. The vehicles are several years old and could be
sold only for scrap value. They do not generate cash independently from the entity.
Required
How will the recoverable value of the vehicles be determined?
Case Study 6
Facts
A railway entity has a contract with the government that requires service on each of 10 different
routes. The trains operating on each route and the income from each route can be identified
easily. Two of the routes make substantially more profit than the others. The entity also operates
a taxi service, a bus com-pany, and a travel agency.
Required
What is the lowest level of cash-generating units that can be used by the entity?
Case Study 7
Facts
An entity operates an oil platform in the sea. The entity has provided the amount of $10 million
for the financial costs of the restoration of the seabed, which is the present value of such costs.
The entity has received an offer to buy the oil platform for $16 million, and the disposal costs
would be $2 million. The value-in-use of the oil platform is approximately $24 million before
the restoration costs. The carrying value of the oil platform is $20 million.
Required

Is the value of the oil platform impaired?
Case Study 8
Facts
An entity has an oil platform in the sea. The entity has to decommission the platform at the end
of its useful life, and a provision was set up at the commencement of production. The carrying
value of the provision is $8 million. The entity has received an offer of $20 million (selling costs
$1 million) for the rights to the oil platform, which reflects the fact that the owners have to
decommission it at the end of its useful life. The value-in-use of the oil platform is $26 million
ignoring the decommissioning costs. The current carrying value of the oil platform is $28
million.
Required
Determine whether the value of the oil platform is impaired.
Case Study 9
Facts
An entity (A) acquires 60% of the ownership interest in another entity (B). The goodwill arising
on ac-quisition was $24 million, and the carrying value of entity B’s net assets in the
consolidated financial statements is $60 million at December 31, 20X5. The recoverable amount
of the cash-generating unit B is $80 million at December 31, 20X5.
Required
Calculate any impairment loss arising at December 31, 20X5, for the cash-generating unit B.
MULTIPLE-CHOICE QUESTIONS
1. IAS 36 applies to which of the following assets?
(a) Inventories.
(b) Financial assets.
(c) Assets held for sale.
(d) Property, plant, and equipment.
2. Value-in-use is
(a) The market value.
(b) The discounted present value of future cash flows arising from use of the asset and from its
disposal.

(c) The higher of an asset’s fair value less cost to sell and its market value.
(d) The amount at which the asset is recognized in the balance sheet.
3. If the fair value less costs to sell cannot be deter-mined
(a) The asset is not impaired.
(b) The recoverable amount is the value-in-use.
(c) The net realizable value is used.
(d) The carrying value of the asset remains the same.
4. If assets are to be disposed of
(a) The recoverable amount is the fair value less costs to sell.
(b) The recoverable amount is the value-in-use.
(c) The asset is not impaired.
(d) The recoverable amount is the carrying value.
5. Estimates of future cash flows normally would cover projections over a maximum of
(a) Five years.
(b) Ten years.
(c) Fifteen years.
(d) Twenty years.