The International Accounting Standards Board (IASB) has published for comment ED/2013/1 an Exposure Draft of proposed amendments to IAS 36 Impairment of Assets.
The ED proposes to modify the disclosures in IAS 36 for the measurement of the recoverable amount of impaired assets. Those disclosure requirements, introduced by IFRS 13 Fair Value Measurement (issued in May 2011), were inadvertently made broader than was intended by requiring an entity to disclose the recoverable amount of each cash-generating unit for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit is significant when compared to the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives. The proposed amendment narrows the requirement by requiring an entity to disclose the recoverable amount of an individual asset (including goodwill) or a cash-generating unit for which the entity has recognised or reversed an impairment loss during the reporting period.
The amendments proposed in the ED also overlap with an amendment to IAS 36 that had been proposed by the Exposure Draft Annual Improvements to IFRSs 2010–2012 Cycle published in May 2012. That ED proposed an amendment that would require an entity to disclose the discount rate that was used in a present value technique in order to determine the recoverable amount of an impaired asset, regardless of whether that recoverable amount was based on fair value less costs of disposal or value in use. That proposal is now incorporated into this ED.
Comments can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chairman, New Zealand Accounting Standards Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to firstname.lastname@example.org. Comments can also be made electronically to the IASB website (www.ifrs.org), using the ‘Comment on a proposal’ page.
Comments are due to the NZASB by 1 March 2013 and to the IASB by 19 March 2013.