LGAM Knowledge Base

In accounting, the term impairment means a downward revaluation of fixed assets.

IAS 36.6 states that an asset is impaired when its carrying amount exceeds its recoverable amount.

To determine whether an item of property, plant and equipment is impaired, an entity applies AASB 136. That Standard explains how an entity reviews the carrying amount of its assets, how it determines the recoverable amount of an asset, and when it recognises, or reverses the recognition of, an impairment loss.

Related Pages

• Impairment Discussion

External Links & References

1. Queensland Treasury Impairment of Assets Policy
2. Wikipedia
3. IAS Plus
4. AASB 116 - Property, Plant & Equipment
5. AASB 136 - Impairment of Assets