Syllabus B3. Impairment of assets 5 / 19

• Identify, circumstances which indicate that the impairment of an asset may have occurred.
• Describe what is meant by a cash-generating unit.
• Define and calculate the recoverable amount of an asset and any associated impairment losses.
• State the basis on which impairment losses should be allocated, and allocate a given impairment loss to the assets of a cashgenerating unit.
• Account for the reversal of an impairment loss that was recognised in a previous period.
Impairment of assets