The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its ...AboutusWhoweareOurstructureWorkinginthepublicinterestHowwesetIFRSStandardsOurconsultativebodiesContactusWorkwithusAroundtheworldWhyglobalaccountingstandards?UseofIFRSStandardsbyjurisdictionAdoptionandcopyrightNewsandresourcesPublication:UseofIFRSStandardsaroundtheworld[PDF]IssuedStandardsIFRSStandardsTheIFRSforSMEsStandardIFRSTranslationsEditorialcorrectionsIFRSTaxonomyApplyingtheStandardsSupportingmaterialsforIFRSStandardsSupportingconsistentapplicationSupportingmaterialsfortheIFRSforSMEsStandardProjectsWorkplanPost-implementationReviewsPipelineprojectsOpenforcommentBetterCommunicationinFinancialReportingCompletedprojectsNewsandeventsIFRSFoundationnewsIFRSFoundationUpdatesMeetingsandeventscalendarIFRSFoundationspeechesIFRSFoundationpodcastsServicesFollow-IAS36ImpairmentofAssets×YouneedtoSignintousethisfeatureCloseShowSectionsAboutStandardNewsAboutThecoreprincipleinIAS36isthatanassetmustnotbecarriedinthefinancialstatementsatmorethanthehighestamounttoberecoveredthroughitsuseorsale.Ifthecarryingamountexceedstherecoverableamount,theassetisdescribedasimpaired.Theentitymustreducethecarryingamountoftheassettoitsrecoverableamount,andrecogniseanimpairmentloss.IAS36alsoappliestogroupsofassetsthatdonotgeneratecashflowsindividually(knownascash-generatingunits).IAS36appliestoallassetsexceptthoseforwhichotherStandardsaddressimpairment.Theexceptionsincludeinventories,deferredtaxassets,assetsarisingfromemployeebenefits,financialassetswithinthescopeofIFRS9,investmentpropertymeasuredatfairvalue,biologicalassetswithinthescopeofIAS41,someassetsarisingfrominsurancecontracts,andnon-currentassetsheldforsale.TherecoverableamountofthefollowingassetsinthescopeofIAS36mustbeassessedeachyear:intangibleassetswithindefiniteusefullives;intangibleassetsnotyetavailableforuse;andgoodwillacquiredinabusinesscombination.Therecoverableamountofothera