ACCA AAA ^INT Syllabus D. Audit of Historical Financial Information - Non-current Assets - Impairments - Notes ^{5 / 41}

Recoverable amount

is higher of...

• Value in Use

  The PV of future cash flows

• FV less Costs to sell

Only check for impairment when theres been an indicator

eg
Damage
Loss of key employees
MV fall
Fall in interest rates

Order for impairment

1. Goodwill

2. All other non current assets pro rata to their carrying values