Disclosure

For each class of assets, the financial statements should disclose:

  • The amount of impairment losses recognised in the statement of profit and loss during the period and the line item(s) of the statement of profit and loss in which those impairment losses are included;
  • The amount of reversals of impairment losses recognised in the statement of profit and loss during the period and the line item(s) of the statement of profit and loss in which those impairment losses are reversed;
  • The amount of impairment losses recognised directly against revaluation surplus during the period; and
  • The amount of reversals of impairment losses recognised directly in revaluation surplus during the period.

An enterprise that applies AS 17, Segment Reporting, should disclose the following for each reportable segment based on an enterprise’s primary format (as defined in AS 17):

  • The amount of impairment losses recognised in the statement of profit and loss and directly against revaluation surplus during the period; and
  • The amount of reversals of impairment losses recognised in the statement of profit and loss and directly in revaluation surplus during the period.

If an impairment loss for an individual asset or a cash-generating unit is recognised or reversed during the period and is material to the financial statements of the reporting enterprise as a whole, an enterprise should disclose:

  • The events and circumstances that led to the recognition or reversal of the impairment loss;
  • The amount of the impairment loss recognised or reversed;
  • For an individual asset:
    • The nature of the asset; and
    • The reportable segment to which the asset belongs, based on the enterprise’s primary format (as defined in AS 17, Segment Reporting);
  • For a cash-generating unit:
    • A description of the cash-generating unit (such as whether it is a product line, a plant, a business operation, a geographical area, a reportable segment as defined in AS 17 or other);
    • The amount of the impairment loss recognised or reversed by class of assets and by reportable segment based on the enterprise’s primary format (as defined in AS 17); and
  • If the aggregation of assets for identifying the cash-generating unit has changed since the previous estimate of the cash-generating unit’s recoverable amount (if any), the enterprise should describe the current and former way of aggregating assets and the reasons for changing the way the cash-generating unit is identified;
  • Whether the recoverable amount of the asset (cash-generating unit) is its net selling price or its value in use;
  • If recoverable amount is net selling price, the basis used to determine net selling price (such as whether selling price was determined by reference to an active market or in some other way); and
  • If recoverable amount is value in use, the discount rate(s) used in the current estimate and previous estimate (if any) of value in use. If impairment losses recognised (reversed) during the period are material in aggregate to the financial statements of the reporting enterprise as a whole, an enterprise should disclose a brief description of the following:
  • The main classes of assets affected by impairment losses (reversals of impairment losses);
  • The main events and circumstances that led to the recognition (reversal) of these impairment losses.

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