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Is it compulsory to test for impairement?

Is it compulsory under IFRS to test for impairment of any fixed asset every year?

asked Feb 19, 2013 in IAS 36 - Impairment of Assets by anonymous

1 Answer

0 votes
It is not compulsory to test for impairment except for following instances:

-any intangible asset which has indefinite useful life
-any intangible asset which is not yet available for use
-goodwill acquired in a business combination

Other assets should be tested for impairment only if there is any indication of any impairment. However you need to assess whether there is any indication of any asset being impaired.
answered Feb 22, 2013 by Kapig Level 2 Member (3,350 points)