A	B	C	D	E	F	G	H
17			Impairment of Long-Lived Non-Financial Assets
18		Canadian ASPE and U.S. GAAP*	Property, Plant & Equipment (PP&E)	Limited-Life Intangible Assets	Indefinite-Life Intangible Assets	Goodwill
19		Do ASPE and/or U.S. GAAP require the entity to be aware that an indication of impairment exists BEFORE requiring the entity to test the asset for impairment?
20			Yes
21		Impairment testing model.	'Cost Recovery'
22			The carrying amount is compared to the undiscounted future cash flows from use and eventual sale.		The carrying amount is compared to the fair value.	The carrying amount (including associated Goodwill) of the reporting unit is compared to its fair value.
23		If testing deems the asset impaired, what is the amount of the impairment loss that should be recognised in the income statement?	The carrying amount less the fair value. ($0 if the fair value exceeds the carrying amount).
24		Can an impairment loss reversal be recognized, and if so, what is the limit, if any, to the reversal?	No. ASPE Section 3063.06: An impairment loss shall not be reversed if the fair value subsequently increases.		No. ASPE Section 3064.67: An impairment loss for an intangible asset shall not be reversed if the fair value subsequently increases.
25		* Canadian ASPE (Accounting Standards for Private Enterprises) are very similar to U.S. GAAP in the measurement and recognition of the impairment of long-lived non-financial assets. (See U.S. Codification Topics 360 Property, Plant and Equipment, and 350 Intangibles - Goodwill and Other).
26		Excerpts are reprinted with permission from the CPA Canada Handbook - Accounting, ©2023, ASPE 3063 and ASPE 3064, by Chartered Professional Accountants of Canada. All rights reserved by copyright owner.
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28			Impairment of Long-Lived Non-Financial Assets
29		IFRS and IFRS-SMEs**	Property, Plant & Equipment (PP&E)	Limited-Life Intangible Assets	Indefinite-Life Intangible Assets	Goodwill
30		Do IFRS require the entity to be aware that an indication of impairment exists BEFORE requiring the entity to test the asset for impairment?	Yes.		No.
31		Impairment testing model.	'Rational Entity'
32			The carrying amount is compared to the recoverable amount.***			The carrying amount (including associated Goodwill) of the cash-generating unit is compared to its recoverable amount.
33		If testing deems the asset impaired, what is the amount of the impairment loss that should be recognised in comprehensive income?	The carrying amount less the recoverable amount.			The carrying amount less the recoverable amount.****
34		Can an impairment loss reversal be recognized, and if so, what is the limit, if any, to the reversal?	Yes, an impairment loss reversal can be recognized in a subsequent period under both the cost and revaluation models. Under the cost model, the reversal cannot increase the asset's carrying amount to an amount higher than would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. [Comment: remember that an indefinite-life asset would have $0 accumulated amortization]. Under the revaluation model, there is no limit; an impairment loss reversal is treated as a revaluation increase: for further details see			No: IAS 36.124: An impairment loss recognised for goodwill shall not be reversed in a subsequent period. IAS 36.125: IAS 38 Intangible Assets prohibits the recognition of internally generated goodwill. Any increase in the recoverable amount of goodwill in the periods following the recognition of an impairment loss for that goodwill is likely to be an increase in internally generated goodwill, rather than a reversal of the impairment loss recognised for the acquired goodwill.
35			capitalassetrevaluation.com
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37		** Full IFRS and IFRS for SMEs use the same measurement and recognition principles for impairment of long-lived non-financial assets. Significantly less disclosure is required by IFRS for SMEs (see IAS 36 Impairment of Assets and IFRS-SME Section 27 Impairment of Assets).
38		*** Under IFRS 'recoverable amount' is the higher of (i) the present value of the asset's future cash flows from use and eventual sale and (ii) the asset's fair value less cost to sell.
39		**** IAS 36.104: The impairment loss shall be allocated to reduce the carrying amount of the assets of the unit (group of units) in the following order: (a) first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group of units); and (b) then, to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). IAS 36.105: In allocating an impairment loss in accordance with paragraph 104, an entity shall not reduce the carrying amount of an asset below the highest of: (a) its fair value less costs of disposal (if determinable); (b) its value in use (if determinable); and (c) zero. The amount of the impairment loss that would otherwise have been allocated to the asset shall be allocated pro rata to the other assets of the unit (group of units).
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