IAS 36 Impairment & Sensitivity Tool
IAS 36 requires entities to test assets for impairment whenever there is an indication that the carrying amount may not be recoverable, and mandatorily for goodwill and indefinite-life intangibles at least annually.
This tool helps you determine whether a carrying amount exceeds its recoverable amount — the higher of fair value less costs of disposal and value in use — and computes the resulting impairment loss or headroom, based on IAS 36 paragraphs 25–29 (FVLCD), 30–57 (value in use), and 58–64 (recognition of impairment loss).
IAS 36 §55–56: discount future cash flows using a pre-tax rate reflecting current market assessment of time value and asset-specific risk.
How it works
You input the asset or CGU carrying amount, select the recoverable amount method (value in use or fair value less costs of disposal), and supply the pre-calculated recoverable amount.
The tool computes the impairment loss as the excess of carrying amount over recoverable amount (IAS 36 §59), and shows the percentage change in recoverable amount that would trigger or eliminate impairment. Loss allocation across individual assets within a CGU (IAS 36 §104 waterfall) and multi-scenario sensitivity tables are not automated — use the AI chat for guidance on those steps.