Accounting Standards 1-29 - Seth & Associates

disclosed under paragraph 121.
123. An enterprise is encouraged to disclose key assumptions used to determine
the recoverable amount of assets (cash-generating units) during the period.
Transitional Provisions
124. On the date of this Statement becoming mandatory, an enterprise
should assess whether there is any indication that an asset may be
impaired (see paragraphs 5-13). If any such indication exists, the
enterprise should determine impairment loss, if any, in accordance with
this Statement. The impairment loss, so determined, should be adjusted
against opening balance of revenue reserves being the accumulated
impairment loss relating to periods prior to this Statement becoming
mandatory unless the impairment loss is on a revalued asset. An
impairment loss on a revalued asset should be recognised directly
against any revaluation surplus for the asset to the extent that the
impairment loss does not exceed the amount held in the revaluation
surplus for that same asset. If the impairment loss exceeds the amount
held in the revaluation surplus for that same asset, the excess should
be adjusted against opening balance of revenue reserves.
125. Any impairment loss arising after the date of this Statement becoming
mandatory should be recognised in accordance with this Statement (i.e.,
in the statement of profit and loss unless an asset is carried at revalued
amount. An impairment loss on a revalued asset should be treated as a
revaluation decrease).
5 See Accounting Standard (AS) 24 ‘Discontinuing Operations’.
Appendix
llustrative Examples
Contents
EXAMPLE
1
EXAMPLE
2-
IDENTIFICATION OF CASH- GENERATING UNITS A1-A22
A- Retail Store Chain A1-A4
B- Plant for an Intermediate Step in a Production Process A5-A10
C- Single Product Enterprise A11-
A16
D- Magazine Titles A17-
A19
E- Building: Half Rented to Others and Half Occupied for
Own Use
CALCULATION OF VALUE IN USE AND RECOGNITION
OF AN IMPAIRMENT LOSS
A20-
A22
A23-
A32