This article explains if and when a detailed impairment test as set out in MFRS 136 is required. The guidance prescribes different requirements for goodwill and indefinite life intangible assets (including those not ready for use) when compared to all other assets. As such, this article will cover Step3 in the impairment review which is to determine if and when to test for impairment is needed.
Designed with our clients in mind, our audit and assurance services focus on critical areas and risks that matter most to your business. The ability to manage...
-
Audit approach
Designing a tailored audit programme customised for your business, we will combine the collective skill and experience of assurance professionals around the world to deliver an audit that is efficient and provides assurance to your key stakeholders.
-
Audit methodology
We have adopted Grant Thornton International's Horizon audit approach and Voyager software, a revolutionary paperless audit designed to achieve a consistent standard of audit service.
-
MFRS
At Grant Thornton, our MFRS advisers can help you navigate the complexity of financial reporting.
-
Our local experts
Our local experts
At Grant Thornton, tax is a key part of our organisation and our tax teams can offer you a range of solutions.
-
Tax advisory & compliance
Our teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
-
Corporate & individual tax
Our teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
-
International tax & Global mobility services
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
-
Indirect tax
Our indirect tax specialists help clients in effective planning; assist to bring clarity to the legislation; assist and advise in audits or investigations. It is important for all entities, whether or not required to register for Sales Tax or Service Tax to analyse the impact of the taxes on their business operations, their revenues and expenses, and their customers and suppliers.
-
Tax audit & investigation
Tax audit and investigation
-
Transfer pricing
Transfer pricing
As your business grows, our advisory services are designed to help you achieve your goals. Successful growth often means navigating a complex array of...
-
M&A, Restructuring & Forensics
Forensic
-
Corporate finance
Whether you are raising capital, disposing of a business or seeking a wider market for your company's shares on a stock market, we are ready to help make it a successful and stress-free experience for you.
-
Business risk services
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
-
Recovery and reorganisation
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
Sustainability and Climate Change Services
Japan Desk in Grant Thornton Malaysia was established in October 2013 to serve as bridge between Malaysia and Japan.
Our expertise in the property industry in ASEAN
Support clients in identifying strategic business or investment partners in China or other region
Our expertise in the retail industry in ASEAN
Our expertise in the technology industry in ASEAN
MFRS 136 ‘Impairment of Assets’ prescribes the accounting for impairment reviews. While the guidance in this area has not changed in recent years, it still remains a challenging area to apply by preparers of financial statements.
The articles in our ‘Insights into MFRS 136’ series have been written to assist preparers of financial statements and those charged with the governance of reporting entities understand the requirements set out in MFRS 136, and revisit some areas where confusion has been seen in practice.
The next three articles in our ‘Insights into MFRS 136’ series cover Step 4 of the impairment review, namely estimating the recoverable amount.
We cover:
- Recoverable amount and fair value less costs of disposal
- Value in use – estimating future cash inflows and outflows
- Value in use – applying the appropriate discount rate
This article, covers the definitions of recoverable amount and fair value less costs of disposal (FVLCOD) and provides an overview of value in use (VIU).
How we can help
We hope you find the information in this article helpful in giving you some insight into MFRS 136. If you would like to discuss any of the points raised, please do not hesitate to contact us.
Related content
View more
Insights into MFRS 136
MFRS 136 - If and when to undertake an impairment review
Insights into MFRS 136
Scope and structure of MFRS 136
This article, Scope and structure of MFRS 136, looks at the scope of the impairment review (i.e. the types of assets that are included) and how it is structured (i.e. the level at which assets are reviewed).
MFRS
MFRS 136 - Overview of the Standard
This article provides an ‘at a glance’ overview of MFRS 136’s main requirements and outlines the major steps in applying those requirements.