frs 136 impairment testing template
DESCRIPTION
FRS 136 Impairment Testing TemplateTRANSCRIPT
SummaryClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Summary of impairment testingSTEPSWORK TO BE PERFORMEDCONCLUSION OF THE INDIVIDUAL STEPS1Indication of impairment losses0.02Identify assets for impairment tests0.03Measuring recoverable amount3.1- Fair value less costs to sell03.2- Value in use04Recognising and measuring impairment losses05Allocating impairment losses0IMPORTANT NOTES TO THE USERS OF THIS IMPAIRMENT TESTING TEMPLATE:1Users should read and understand FRS 136 Impairment of Assets before using this template.2Throughout this template, please take note of the following:represents editable areas by the usersrepresents results derived from your inputs.Wordsrepresents hyperlink to other parts of this documents3You are advised not to rely solely on this template to test the impairment losses.
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.AXP TS:Please click me to start the impairment testingIndication of impairment lossesIdentify assets for impairment tests- Fair value less costs to sell- Value in useRecognising and measuring impairment lossesAllocating impairment lossesIndication of impairment lossesRecognising and measuring impairment losses
IndicationClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Indication of Impairment AssetsBack to summaryEXTERNAL SOURCES OF INFORMATION1Has the asset's market value declined significantly more than expected as a result of passage of time or normal use?Pls select2Are there any significant changes that have taken place or will take place that will adversely affect the Company's assets?Pls select- Technological changes- Market changes- Economic changes- Legal changes3Is there any increase in market interest rates or other market rates of return on investments?Pls select4Is the carrying amount of the net assets of the Company exceeding its market capitalisation?Pls selectINTERNAL SOURCES OF INFORMATION5Is there any evidence of obsolescence or physical damange of the assets of the Company?Pls select6Are there any significant changes that have taken place or will take place that will adversely affect the Company's assets?Pls select- Do you want to review the list for consideration?Pls select0.00.00.00.07Is there any evidence from internal reporting that indicates that the economic performance of an asset is, or will be, worse than expected?Pls select- Do you want to review the list for consideration?Pls select0.00.00.00.0REVIEW FOR IMPAIRMENT LOSS FOR INTANGIBLE ASSETS8Is there any intangible asset with an indefinite useful life?Pls select9is there any intangible asset not yet available for use?Pls select10Is there any goodwill acquired in a business combination?Pls selectCONCLUSION ON ASSESSMENT OF THE INDICATION OF IMPAIRMENT OF ASSETS:-0.00.0Back to summary0.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&11&R&9Copyright 2006 AXP Solutions Sdn. Bhd.AXP TS:Please answer all the following questions.Back to summaryBack to summary0.0
CAClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Identify Assets for Impairment Tests and Determine their Carrying AmountsHelpBack to summaryName of Individual Assets / CGUTOTALIndividual Assets / CGUPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectLand0.0Buldings0.0Plant and machinery0.0Equipment and furniture0.0Motor vehicles0.0Other PPE (1)0.0Other PPE (2)0.0Other PPE (3)0.0Investment property - at cost0.0Deferred expenditure0.0Subsidiaries0.0Associates0.0Joint venture0.0Other investment (1)0.0Other investment (2)0.0Intangible assets0.0Goodwill0.0Corporate assets0.0TOTAL0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Errors in allocation of individual assets (if any):-> 1 item is allocated, or no input in line 70.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Goodwill and/or corporate assets are allocated0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Back to summary0.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.AXP TS:Please click me to know how to derive figure for goodwillAXP TS:Please click me to know how to derive figure for corporate assetsHelpBack to summaryBack to summaryGoodwillCorporate assets0.0
FVClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Determininng Fair Value Less Costs to SellHelpBack to summaryName of Individual Assets / CGU0.00.00.00.00.00.00.00.00.00.00.00.0Sources of Fair valueTotalPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectFAIR VALUE0.0LESS: COSTS TO SELL- Legal costs0.0- Stamp duty0.0- Other transaction taxes0.0- Costs of removing the asset0.0- Direct incremental costs0.0- Other (1)0.0- Other (2)0.0- Other (3)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Fair Value Less Costs to Sell0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Back to summary0.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.HelpBack to summaryBack to summary0.0
VIU-InputClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Determining Value in UseHelpBack to summaryName of Individual Assets / CGU0.00.00.00.00.00.00.00.00.00.00.00.0To Assess VIU?0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Input:First projection year2006Projected cash inflowsProjected cash outflows - Direct costsProjected cash outflows - Other costsProjected net cash flows at end of useful life:-20062007200820092010Projected growth rate for:Cash inflows:-2007200820092010Cash outflows - Direct costs:-2007200820092010Cash outflows - Other costs:-2007200820092010Discount rate:-2006200720082009201020060.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%20070.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%20080.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%20090.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%20100.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Back to summary0.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.AXP TS:Projections over a period longer than 5 years are not included in this templateHelpBack to summaryBack to summaryDiscount rate:-0.00.0
VIU-OutputClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Determining Value in UseHelpBack to summaryName of Individual Assets / CGUTOTAL0.00.00.00.00.00.00.00.00.00.00.00.00.0NET PRESENT VALUE0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02006Projected cash inflows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Direct costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Other costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected net cash flows at end of useful life0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Cash Flows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Present Value0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02007Projected cash inflows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Direct costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Other costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected net cash flows at end of useful life0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Cash Flows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Present Value0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02008Projected cash inflows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Direct costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Other costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected net cash flows at end of useful life0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Cash Flows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Present Value0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02009Projected cash inflows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Direct costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Other costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected net cash flows at end of useful life0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Cash Flows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Present Value0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02010Projected cash inflows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Direct costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected cash outflows - Other costs0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Projected net cash flows at end of useful life0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Cash Flows0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Net Present Value0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Back to summary0.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.Back to summaryBack to summaryHelp0.0
ImpairmentClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Summary of Proposed Impairment LossesBack to summaryName of Individual Assets / CGUGRAND TOTAL0.00.00.00.00.00.00.00.00.00.00.00.0CARRYING AMOUNT0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Fair value less costs to sell0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Value in use0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0RECOVERABLE AMOUNT0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Impairment Losses To Be Recognised0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0- Goodwill0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0- Assets other than goodwill0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Add: Impairment losses recogised previously on:-0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0- Goodwill0.0- Assets other than goodwill0.0Less: Impairment losses reversed0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Accumulated impairment losses recognised0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Accumulated impairment losses carried forward:-- Goodwill0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0- Assets other than goodwill0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Back to summary0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.AXP TS:FRS 136.124An impairment loss recognised for goodwill shall not be reversed in a subsequent period.AXP TS:FRS 136.122A reversal of an impairment loss for a cash-generating unit shall be allocated to the assets of the unit (except for goodwill) pro rata with the carrying amounts of those assets.AXP TS:Carrying Amount minus Recoverable Amount if Carrying Amount > Recoverable AmountAXP TS:Higher of Fair Value less Costs to Sell and Value in UseBack to summaryBack to summary0.0
AllocationClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Summary of Allocation of Impairment Losses to Individual Assets / Cash-generating UnitsBack to summaryName of Individual Assets / CGUGRAND TOTAL0.00.00.00.00.00.00.00.00.00.00.00.0Individual Assets / CGUPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectPls selectIMPAIRMENT LOSSES TO BE RECOGNISED0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Land0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Buldings0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Plant and machinery0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Equipment and furniture0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Motor vehicles0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Other PPE (1)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Other PPE (2)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Other PPE (3)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Investment property - at cost0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Deferred expenditure0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Subsidiaries0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Associates0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Joint venture0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Other investment (1)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Other investment (2)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Intangible assets0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Goodwill0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Corporate assets0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0CGU or individual asset0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0Back to summary0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.Back to summaryBack to summary
HelpClient's Name:Sample Sdn. Bhd.Year / Period Ended:31 December 2005Subject:Help on Using Impairment Testing TemplateGuidelines to complete CA ("Carrying Amount") Sheet1Identify individual assets and/or cash-generating units subject to impairment test.Line 6Question:What assets are excluded from the scope of FRS 136?Click me2Select whether the asset(s) is an individual asset or cash-generating unitGuidance:Can the asset's value in use be estimated to be close to its fair value less costs to sell?Pls selectCan the asset generate cash inflows that are largely INDEPENDENT from other assets?Pls selectResult:0.0Line 73Fill in the CARRYING AMOUNT of the individual asset(s) or cash-generating unit(s)Line 9 ~ 26Reminder:For individual assets Please ensure that ONLY one amount is allocated to individual asset(s).Example:Assets not subject to impairment test under FRS 136 (but dealt with in other FRS)1Inventories2Assets arising from construction contracts3Deferred tax assets4Assets arising from employee benefits5Financial assets that are within the scope of FRS 1396Investment property that is measured at fair value7Biological assets related to agricultural activity that are measured at fair value less estimated point-of-sale costs8Deferred acquisition costs, and intangible assets, arising from insurer's contractual rights under insurance contracts9Non-current assets (or disposal groups) classfied as held for saleBackGuidelines to determine Recoverable Amount - Fair value less costs to sell1Is there any binding sale agreement in an arm's length transaction?Pls select0.00.00.00.0Pls select0.00.00.00.0Pls select0.00.0Guidelines to complete FV ("Fair value less costs to sell") Sheet1After determining the sources for fair value, select the sources from drop-down listLine 72Input the "fair value" determined using the sources indicated in step 1Line 93Input the "costs to sell", other than those that have been recognised as liabilitiesLine 12 ~ 19Reminder:Termination benefits and costs associated with reducing or reorganising a business following the disposal are excluded.Example:Guidelines to complete VIU-Input ("Value in use") Sheet1Key in the first forecast year/period in cell B10Cell B102Key in the forecasted cash inflows & cash outflows for direct and other costs for the first forecast year/periodLine 11 ~ 133Key in the projected net cash flows of the assets at the end of the useful lifeLine 16 ~ 204Key in the projected growth rate for the cash inflows & cash outflows for direct and other costs:-Cash inflowsLine 24 ~ 27Cash outflows - Direct costsLine 30 ~ 33Cash outflows - Other costsLine 36 ~ 395Key in the discount rate for discounting future cash flowsLine 42 ~ 46Question:How to determine discount rate?Click me6Net present value for the value in use will be generated automaticallyNet Present ValueExample:Determining GoodwillAllocation of goodwill on acquisition1From the acquisition date, goodwill acquired in a business combination shall be allocated to the acquirer's cash-generating units that are expected to benefit from the synergies, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.Example:Holding acquired Subsidiary on 1.9.2005, during the financial year from 1.1.2005 ~ 31.12.2005. Holding shall allocate goodwill acquired on 1.9.2005.2Each unit to which goodwill is so allocated shall: represent the lowest level within the entity at which the goodwill is monitored for internal management purposes; and not be larger than a primary or secondary segments as determined by FRS 114 (2004).Initial allocation that cannot be completed during the annual period3If the initial allocation of goodwill acquired in a business combination cannot be completed before the end of the annual period in which the business combination is effected that intial allocation shall be completed before the end of the first annual period beginning after the acquisition date.Example:If Holding cannot complete the allocation of goodwill by 31.12.2005:-- And that the next financial year will begin on 1.1.2006 and end on 31.12.2006, Holding shall complete the allocation of goodwill latest by 31.12.2006.- And that Holding changes its financial year end to 30.06.2006, Holding shall complete the allocation of goodwill latest by 30.06.2006.Treatment of goodwill associated with the operation disposed of4The goodwill associated with the operation disposed of shall be: included in the carrying amount of the operation when determining the gain or loss on disposal; and measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained UNLESS the entity can demonstrate that some other method better reflects the goodwill associated with the operation disposed of.Treatment of goodwill associated with the reorganising of reporting structure5The goodwill associated with the operation disposed of shall be: reallocated to the units affected; and performed using a relative value approach UNLESS the entity can demonstrate that some other method better reflects the goodwill associated with the reorganised units.Back to CADetermining Corporate AssetsIn testing a cash-generating unit for impairment, an entity shall identify all the corporate assets that relate to the cash-generating unit under review.If a portion of the carrying amount of a corporate asset CAN be allocated on a reasonable and consistent basis to that unit1Fill in the carrying amount of corporate assets of a cash-generating unit.Line 262Compare the carrying amount of the unit (including the carrying amount of corporate assets) with recoverable amount.If a portion of the carrying amount of a corporate asset CANNOT be allocated on a reasonable and consistent basis1Compare the carrying amount of the unit (excluding the corporate asset), with its recoverable amount.2Recognise any impairment loss.3Identify the smallest group of cash-generating units that includes cash-generating unit under review and to which a portion of the carrying amount of the corporate asset can be allocated on a reasonable and consistent basis.4Compare the carrying amount of the group of units (including the corporate asset allocated to that group of units), with its recoverable amount.5Recognise any impairment loss.Back to CADetermining Discount Rate1Is the asset-specific rate directly available from the market?Pls select0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
&R&10Prepared by: _______________ Date: _______________Reviewed by: _______________ Date: _______________&R&9Copyright 2006 AXP Solutions Sdn. Bhd.Line 6Line 7Line 9 ~ 26Click me0.00.00.0Line 7Line 9Line 12 ~ 19Cell B10Line 11 ~ 13Line 16 ~ 20Line 24 ~ 27Line 30 ~ 33Line 36 ~ 39Line 42 ~ 46Net Present ValueBack to CALine 26Back to CAClick me0.00.0Back
ValidateSUMMARY SHEETPropose to recognise impairment losses.Propose to reverse impairment losses.Propose to recognise and reverse impairment losses.No impairment losses need to be recognised.Please proceed to step 4Error in allocating goodwill, please ensure that ONLY one amount for individual assetsRefer to "Allocation" for impairment losses allocatedINDICATION SHEETYes_noYesNoPls selectResult0.0Yes0.0No0.0Intangible assetsPLEASE PROCEED TO TEST FOR THE IMPAIRMENT LOSSESDO NOT PROCEED ~ NO INDICATION OF IMPAIRMENT LOSSTEST THE IMPAIRMENT LOSS FOR THE ABOVEMENTIONED INTANGIBLE ASSETS ONLYERROR, LINE 25 AND/OR 26 IN CA SHEET SHOULD NOT HAVE ANY FIGURES FOR INDIVIDUAL ASSETPLEASE PROCEED TO STEP 3List of significant changesIs the asset becoming idle?Does the Company plan to discountinue or restructure the operation to which the asset belongs?Does the Company plan to dispose of an asset before the previously expected date?Is the Company reassessing the useful life of an asset as finite rather than indefinite?List of internal reportingAre the cash flows for acquiring the asset or subsequent cash needs significantly higher than those originally budgeted?Are the actual net cash flows or operating profit or loss flowing from the asset significantly worse than those budgeted?Is there significant decline in budgeted net cash flows or operating profit, or significant increase in budgeted loss?Are there operating losses or net cash outflows when current period amounts are aggregated with budgeted amounts for the future?Go to next step ~ Determining carrying amountsCA (CARRYING AMOUNT) SHEETcgu_indCash-generating unitIndividual assetPls selectFairValueBinding sale agreementTraded in an active marketBest information availablePls select> CA, do not proceed< CA, to assess VIUFV of all or certain items < CA, please assess the VIU for those items' FV < CA= CA, do not proceedGo to next step ~ Determining fair value less costs to sellVIU-INPUT SHEETAssess VIUDetermining Value in UseGo to VIU-Output for Net Present Value computedVIU-OUTPUT SHEETGo to next step ~ Summary of impairment lossesDETERMINING FAIR VALUE (HELP)Please use binding sale agreement.Please proceed to next questionIs the asset traded in an active market?Is the current bid price available?Please use the current bid price.Please use price of the most recent transaction (provided no significant change since transaction date).Based on the best information available which reflects an arm's length transaction.COMPLETE CA (HELP)Please perform impairment test on INDIVIDUAL ASSET(S)Please perform impairment test on CASH-GENERATING UNIT(S)00DETERMINING DISCOUNT RATE (HELP)Please use the asset-specific rate available from the marketPlease follow the guideline in item 2 to estimate the discount ratePlease follow the following steps to estimate the discount rate:-Take into account the following rates:(a) Entity's weighted average cost of capital determined using techniques, such as the Capital Asset Pricing Model;(b) Entity's incremental borrowing rate; and(c) Other market rates.Adjust the above rates to:(a) Reflect the way that the market would assess the specific risks associated with the asset's estimated cash flows; and(b) Exclude risks that are not relevant to the asset's estimated cash flows or for which the estimated cash flows have been adjusted.Other considerations:(a) Consideration should be given to risks such as country risk, currency risk and price risk.(b) Discount rate used must be a pre-tax rate.(c) Entity normally uses a single discount rate for the estimate of an asset's value in use.(d) However, entity uses separate discount rates for different future periods where value in use is sensitive to a difference in risks for different periods or term structure of interest rates.
Go to VIU-Output for Net Present Value computed