Impairment loss

Screen management

This function is composed of:

• A header that is used to specify the processing options: simulation, printing of a detailed log file.
  
• A tab that is used to enter the impairment loss/reversal or impairment loss/reversal cancellation process setups.

Management of the window

The management is the same for this window as for all the mass processing processings that can be applied to assets.

Processing setup

1/ Impairment loss/reversal process:

First, it is necessary to set up the processing. This setup consists in:

- Specifying the processing options. By default, the process is performed in Simulation mode. It generates a Detailedlog file presenting the values of the different parameters applied at the time of the execution and displaying, for each asset updated, the Balance sheet value and Market value, the Impairment loss, Impairment loss reversal and Balance amounts and the reversal limit for the impairment loss as well as the new Net value after impairment loss.

- Possibly entering the company in order to filter the CGUs and thus only display in the list accessed from the CGU field those that own at least one asset belonging to the selected company.

- Entering the setups linked to the impairment loss/reversal processing: reference of the the CGUbeing the subject of the impairment loss/reversal, the Depreciation plan concerned, the Reason for the impairment loss/reversal as well as the Market value and/or the Usage value of the CGU.

2/ Impairment loss/reversal cancellation processing:

It is only necessary to activate the Cancel impairment loss flag. It becomes available once a impairment loss/reversal process has taken place for the selected CGU, in the current period for the specified depreciation plan.

Process launch

Once the setup is done, it is possible to:

• Either to directly confirm the entry of the parameters by clicking on [OK]. The deprecation/reversal calculation is carried out directly in the selected asset(s).
  
• Or to pass by an intermediate stage - control on the parameters entered and the values calculated - by clicking on the button [Control].

A window displays in the form of a table the list of assets attached to the selected CGU. For each of the assets, the following information is displayed:

- Company in which the asset is referenced
- Asset reference and description
- Ex-tax receipt value (CoA or IFRS)
- Net value before impairment loss/reversal
- Impairment
- Impairment loss reversal
- Net value before impairment loss/reversal
- Reversal limit
- Market value
- Effective start date.

The impairment loss or impairment loss reversal amounts calculated in this way can be modified by the user.

Any modification must be confirmed by using the button [Save] list. To cancel the modifications under way on the asset, click on [Cancel].
Once the manual adjustments are complete, click on [End] button to close the control window; the parameter entry window is displayed again, making it possible to either confirm the mass update by clicking [OK], or to abort the update by clicking the button [End].

Header

Options

• Simulation:
  This box, ticked by default, is used to carry out an impairment loss simulation on the selected assets. The modification of the assets is not recorded in the database.
  The impact of the processing on the assets can be viewed in the log file displayed at processing completion.
  
• Detailed log file:
  A process log file is systematically displayed at the end of the processing. This log shows the processing options used, any selection criteria and the impairment loss setup values. It further shows for each of the companies involved in the process: the number of assets processed, the number of assets updated and the number of assets not processed as a result of an error.
  
  When this box is selected, the log file is displayed in a detailed report presenting, in addition to the information listed above, the list of assets successfully processed, grouped by company. The following information is given for each of the assets : the Balance sheet value, the Market value, the Impairment loss amount, the Impairment loss reversal amount, the Impairment loss balance, the Impairment loss reversallimit as well as the new Net value.

Note: the viewing and printing of the log files is possible at any time via the Print log file print request of the ATRACE report code, obtained from the Supervisor function in the Print/Group print menu.

Company selection – Site selection

These tables display both the list of managed companies for which the user is authorized and the list of sites corresponding to these companies where the user is authorized.

 When the company parameterACCPERCTL - Control of accounting periods (chapter AAS, group CPT) has Yes for value, the company is not displayed in the list as soon as at least of one its context is not synchronized with the accounting period/fiscal breakdown.In this case, it is necessary to launch the processing of Contexts synchronization.
The desynchronization status of a context can be viewed on theDetailed status of contexts, Calculation tab (the value of the Modification type field is set to:CNX and the value of the field Parameter modified isDESYNC).

Note:
An impairment loss is necessarily carried out on all the assets making up a CGU. These assets can be referenced in different companies, it is therefore not possible to choose a company with the goal of only selecting the assets of this company.
The selection is only used to filter the CGUs in order to only display those having at least one asset belonging to the chosen company in the list accessible from the CGU field.

Tab Setup definition

1 - Impairment loss (reversal)

This tab is used to:

• Enter the reference of the CGU to be impaired.
   
• Select the plan on which the impairment loss processing will be carried out. To be selected, the plan must fulfill the following conditions:
   
  - It must be a plan managed according to the IAS/IFRS or CRC2002-10 standards.
  - It cannot be the subsidy plan.
  - If the assets belong to different companies, the management currency for the context as well as the current period end date of the context must be identical across all of these companies.
  - A periodic calculation of the plan must necessarily have been performed for each company.
• Enter the following parameters:
  
  - Internal reason and/or external reason justifying the impairment loss or impairment loss reversal.
  
  - Market value and/or Usage value. These values will be used to determine the Recoverable value that corresponds to the largest of the two. The entry of at least one of the two values is therefore mandatory.
   
• Display the following information:
  
  - Effective date: this field is automatically loaded with the end date of the current fiscal year or with the end date of the current period when the fiscal year is sub-divided into periods.
  
  - Net bookvalue. This field is automatically loaded with the sum of the net book values of the assets in the CGU at the end of the current period before the application of the impairment loss or the impairment loss reversal.
  This field is not assigned upon impairment loss cancellation.
   
  -Impairment loss. This field is loaded automatically after determining the value to recover, based on the impairment loss amount of the period. This amount corresponds to the result of the following calculation:
  
  Sum of the Net Book Values of the assets in the CGU at period end – Recoverable value of the CGU
  … only if the sum of the net book values is greater than the recoverable value. In the opposite case, the impairment loss amount is equal to: 0.
  This field is not entered during the cancellation of an impairment loss.
   
  - Impairment loss reversal. This field is automatically loaded after the recoverable value has been determined. It contains, if it exists, the impairment loss reversal amount for the period. It can only be entered if an impairment loss has already been carried out in one of the previous periods.
  This amount corresponds to the result of the following calculation:
  Recoverable value of the CGU - Sum of the Net Book Values for the assets of the CGU at period end 
  … only if the recoverable value is greater than the sum of the net book values.
  Otherwise, the Impairment loss reversal amount is equal to: 0.
  This field is not entered during the cancellation of an impairment loss.
   
  - Impairment loss reversal balance. This field is entered only when the calculated impairment loss reversal amount cannot be distributed in its totality, on the assets attached to the CGU, taking into account the impairment loss reversal limits of the assets.
  This impairment loss reversal balance can be used as a revaluation for companies that have chosen this method: the revaluation is carried out either by individual processing or by the mass revaluation . processing.
  This field is not entered during the cancellation of an impairment loss.
  
  - Impairment loss limit. This field is only entered when an impairment loss has already been carried out in one of the previous periods. It is loaded with the sum of the impairment loss reversal limits for the assets in the CGU.
  This amount is used to determine the distribution of the impairment loss reversal on the assets of the CGU (see below the terms used to distribute the global impairment loss reversal amount determined at CGU level, on each of the assets,) as well as the impairment loss reversal balance.

Description of the impairment loss processing

An impairment loss processing carries out the following operations:

• Calculation of the impairment loss amount (and impairment loss reversal limit) or of the impairment loss reversal amount of the CGU, then distribution of the amount on each of the selected assets according to the terms detailed later, at the level of the Control button.
   
• Calculation of the new net value of the assets at the end of the period. If this new net value is smaller than the residual value, the amount of this net value will be added to the residual value at closure.
   
• Loading of the internal/external reason for impairment loss, at the level of each asset. This information is displayed in the Depreciation plan tabs.
   
• The impairment loss of an asset in non residual mode leads to a change in depreciation method that will automatically take the Equivalent residual method value. This change in method is used to process in a long-term fashion the impairment loss or impairment loss reversal, by depreciating the new net value over the residual depreciation duration.
   
• Generation of an Impairment loss event (FASIML )or impairment loss reversal brought about by the disappearance of or reduction in the value loss index for the asset:
  - The operating effective date recorded in the EVTDAT field and the accounting effective date recorded in the CPTDATINT field receive the End date of the current period.
  This event contains the information required for the production of accounting entries related to impairment losses and impairment loss reversals.
  (The user can view the events in the Event journal window that can be accessed from the Other info tab of the Assets management function.)
  
  Notes:
  - In case of an impairment loss reversal occurring during the issue of an asset with an impairment loss balance on issue date, the FASIML event is generated on asset disposal. 
  - When the impairment loss reversal is linked to an impairment loss on a plan managed in compliance with the CRC2002-10 standard, and transferred to exceptional depreciation (see below), no reversal event is generated. The values required for the posting of the impairment loss in the impairment loss account, are recorded in the DEPREC charge table. 

Impairment loss on a plan managed in compliance with the CRC2002-10 standard (generally speaking on the chart of accounts of a French company).

A impairment loss occurring on a plan managed in compliance with the CRC2002-10 standard is automatically accompanied by a impairment loss reversal calculated on the last period of the current FY. The amount of the impairment loss reversal corresponds to the difference between the amount of the theoretical FY expense (calculated without taking the impairment loss into account) and the amount of the actual FY expense.
This impairment loss reversal is automatically transferred to exceptional depreciation in the last period of the FY or in the issue period if an asset issue is recorded in a previous period.
The reversal and its transfer to exceptional charge are neutral regarding the net value:
- the impairment loss reversal increases the net value
- the exceptional depreciation charge reduces this net value by the same amount.
 
Notes:

• An impairment loss on the chart of accounts does not generate any Book vs. Tax depreciation. This depreciation is actually determined taking into account the theoretical accounting depreciation of the FY (and not the actual depreciation), i.e. taking into account all the depreciation expenses: the "standard" expense to which the exceptional expense, caused by a impairment loss reversal or not (see examples 2 and 3 below), is added.
• When an asset has 2 impairment loss reversals on the same period, the chronology is as follows:
  1. Calculation of the expenses: the result is the Impairment loss reversal to transfer as exceptional expense.
  2. * Either saving of an impairment loss reversal after disappearance of or decrease in the value loss index: this Impairment loss reversal will be added to the Reversal calculated in step 1.
  2. Or impairment loss reversal because of the asset issue: this Impairment loss reversal will be added to the Reversal  calculated in 1.
   
  * This reversal is exclusive:
  - if the asset is issued, the impairment loss or impairment loss reversal is prohibited,
  - if an asset has been subjected to an impairment loss or an impairment loss reversal and is issued in the same period, the impairment loss (or impairment loss reversal) is canceled. The events used to reverse their posting are generated.

2 - Cancellation of the impairment loss/reversal

The assets in a CGU cannot be subjected to more than one impairment loss/reversal in the same plan over the current period. It is therefore necessary to cancel the impairment loss/reversal previously performed before carrying out a new impairment loss/reversal.
 
This cancellation is possible as long as the fiscal year or period has not been closed. It used to re-initialize the impairment loss or reversal amount for the assets and to create the cancellation events corresponding to the original events.

Description of the impairment loss/reversal cancellation processing

The cancellation process for the impairment loss/reversal leads to:

• the reset to zero of the impairment loss amount or impairment loss reversal amount of the assets.
  
• the reassignment to their values prior to the impairment loss/reversal of the fields updated by the impairment loss processing (with the exception of the Market value, which keeps the value entered at the time of the impairment loss).
  
• the automatic switching back to the original method if the impairment loss has led to the mandatory change of the depreciation method to an equivalent residual method..
• the generation of an Impairment loss cancellation event (FASIML). (The impairment loss and impairment loss cancellation events have the same contents, only the event type is used to distinguish them).
  View events in the Events journal window that can be accessed from the Other info tab of the Assets management function.
  

Batch task

This function can be run in batch mode. The standard task FASIML is provided for that purpose.

Specific Buttons

Check

This button leads to the display of a window containing the list of assets attached to the selected CGU in a table. Reminder: the assets showing the following characteristics at the level of the Process description cannot be subject to an impairment loss. They are implicitly excluded from the list of selected assets. For each of the assets, the following information is displayed: - Company in which the asset is referenced, - theasset reference and description, - Receipt value ex-tax, - Net valuebefore impairment loss - impairment loss: the impairment loss amount for each of the assets is automatically determined in the following way: The global impairment loss amount calculated at CGU level is posted as a priority and at a maximum (until its net value is equal to 0) for the assets which Fixed asset type is Goodwill. The remaining impairment loss amount is distributed on the other assets on a pro rata basis as follows: Remaining impairment loss amount (after posting on the assets of the type Goodwill) x Net accounting value of the asset / Sum of the Net accounting values for the non-Goodwill assets whose market value is not specified or for those whose market value is less than the Net value. Modify this standard behavior by setting the parameter IMLNSPNBV - Impair if Market value > NV to 'Yes' (AAS chapter, FAS group).In this case, the impairment loss remaining amount will be distributed on all the assets including those whose market value is higher than their net book value. On completion of the automatic distribution, the impairment loss amount calculated in this way for each of the assets remain modifiable including for the Goodwill assets. Notes: - When the IMLNSPNBV - Impair if Market value > NV parameter is set to "No", any asset having a Market value greater than or equal to its Net value is not impacted by the impairment loss; its net value is taken into account in the calculation of the impairment loss amount for the CGU. Yet this asset receives no part from the impairment loss. - In order to balance the impairment loss calculated at CGU level, the last asset impaired receives the balance of the impairment loss not distributed on the other assets. Example of impairment loss of a CGU composed of 4 Non-Goodwill assets with 2 having their own market values entered (the IMLNSPNBV - Impair if Market value > NV parameter is set to "No"). Assets Market value of the asset Net value Impairment loss Net value after impairment loss Calculation Amount B1   2,000 2,000 * 2,000 / 5,000 800 1,200 A2   2,000 2,000 * 2,000 / 5,000 800 1,200 B3 1,500 1,000 0    0 1,000 B4    500 1,000 2,000 * 1,000 / 5,000 400    600 Total CGU   6,000   2,000 4,000 Total of net values of the 4 assets: 6,000 Recoverable value of the CGU: 4,000 Impairment loss to be distributed across the assets: 6,000 - 4,000 = 2,000 The B3 asset is not impaired ; it is excluded from the distribution because its market value is greater than its net value. - Impairment loss reversal: the impairment loss reversal amount for each of the assets is automatically determined as follows: No impairment loss reversal is performed for Goodwill assets. The reversal is distributed on the other assets taking into account their impairment loss reversal limit in order to avoid this reversal leading to a net value that is greater than that which would have been obtained in the absence of impairment loss. If the global Impairment loss reversal amount calculated at CGU level … 1/ … is greater than or equal to the sum of the Impairment loss reversal limits of the assets, the Impairment loss reversal amount of each non Goodwill asset is then equal to its Impairment loss reversal limit. 2/… is less than the total of the Impairment loss reversal limit of the assets, the Impairment loss reversal amount of each non Goodwill asset is then equal to the result of the following calculation: Global impairment loss reversal amount for the CGU x Impairment loss reversal limit of the asset / Sum of the impairment loss reversal limits for all of the Goodwill assets. See below, an example of impairment loss followed by an impairment loss reversal for a CGU composed of two tangible fixed assets and one fixed asset of type Goodwill. Note: any asset not having an Impairment loss reversal limit is excluded from the calculation. At the end of the automatic distribution, the reversal amount thus calculated for each of the assets remains modifiable (including the Goodwill assets) as this amount does not exceed the increase limit for the asset. - Net value. This is the Net value of the asset at the end of the current period, after impairment loss. Note: if on completion of the impairment loss calculation, the net value becomes less than the residual value, the latter will be automatically loaded with this new net value amount upon the next period closing. - Reversal limit. This is the maximum amount of the impairment loss reversal. This amount, automatically calculated in the following way, constitutes the limit applied in order not to obtain a Net accounting value greater than that which would have been determined if the asset has not been impaired: Theoretical net value at period start (the theoretical value does neither take the impairment losses nor the impairment loss reversals into account) - Actual net value at period start (after impairment losses on the previous periods). Market value: this value is entered only if a market value has been entered for the asset, either during a revaluation process, or in the options window accessible from the asset management function. - Start-up date. Any modification of one or more depreciation parameters carried out on an asset must be validated using the [Save] button. To cancel the modifications under progress on the asset, click on [Abort]. Once the manual adjustments are completed, click on button [End] to close the control window; the setup entry window is displayed again, which makes it possible to either confirm the mass update by clicking on [Ok], or to abort the update by clicking on [End]

Examples

*Example 1 of an impairment loss followed by an impairment loss reversal on a CGU composed of two Property, Plant and Equipment assets and one asset of Goodwill type.

The CGU is composed by the following assets:

Asset	Fixed asset type	Depreciation Start Date	Initial balance sheet value	Method	Duration
I01	Property, Plant and Equipment	01/01/2004	100,000	LP	5 years
I02	Property, Plant and Equipment	01/07/2004	5,000	LP	5 years
I03	Goodwill	01/01/2004	10,000	LP	4 years

 

		Theoretical values excluding impairment loss					Actual values including impairment loss
FY	Asset	Fiscal	Total	Value Net theoretical	Impairm. / Reversal Impairm.	Reversal limit	Fiscal	Total	ActualNetValue
2004	I01	20,000	20,000	80,000			20,000	20,000	80,000
	I02	502.73	502.73	4,497.27			502.73	502.73	4,497.27
	I03	2,500	2,500	7,500			2,500	2,500	7,500
2005	I01	20,000	40,000	60,000	- 3,304.65		20,000	40,000	56,695.35
	I02	1,000	1,502.73	3,497.27	- 192.62		1,000	1,502.73	3,304.65
	I03	2,500	5,000	5,000	- 5,000		2,500	5,000	0
			TOTAL	68,497.27	- 8,497.27 (1)			Total	60,000
2006	I01	20,000	60,000	40,000	+3,304.65	3,304.65	18,898.45	58,898.45	37,796.90 41,101.55
	I02	1,000	2,502.73	2,497.27	+ 192,62	192.62	944.19	2,446.92	2,360.46 2,553.08
	I03	2,500	7,500	2,500	0	0	0	5,000	0
					(3)		(4)	TOTAL	40,157.36 (2) (5)

2005 FY end:
 (1)
- Total of the Net valuesof the assets of the CGU: 68,497.27
- Recoverable value of the CGU = 60 000.
impairment loss of the CGU = 68 497,27 – 60 000 = 8,497.27 
 - Distribution of the impairment loss:
 The depreciation is allocated as a priority and the maximum on the Goodwill I03 asset is: 5,000.
 It is then posted to assets I01 and I02.
* Impairment loss of asset I01: 3,497.27 x 60,000 / 63,497.27 = 3,304.65
* Impairment loss of asset I02: (4)  8,497.27 – (5,000 + 3,304.65)  = 192.62

 2006 FY end:
(2)
Net values before impairment loss reversal:
- Asset I01: 56,695.35 – 18,898.45 = 37,796.90
- Asset I02: 3,304.65 – 944.19 = 2,360.46
- Sum of the Net values of the assets in the CGU before the impairment loss reversal: 40,157.36
- CGU recoverable value = 45,000.
CGU impairment loss reversal: 45,000 – 40,157.36 = 4,842.64

(3)
- Reversal limit of asset I01: 60,000 – 56,695.35 = 3,304.65
- Reversal limit of asset I02: 3,497.27 – 3,304.65 = 192.62
The amount of the Impairment loss reversal (4,842.64) being greater than or equal to the total of the reversal limits for the impairment loss of the assets I01 and I02 (3,497.27), the amount of theimpairment loss reversal for each of the non Goodwill assets is then equal to its impairment loss reversal limit:
- Impairment loss reversal of asset I01 = 3,304.65
- Impairment loss reversal of asset A02 = 192.62
- No impairment loss reversal is performed on the Goodwill |03 asset.

(4)
Calculation of 2006 charges, with switching of the depreciation method to Residual Months (RM).
- Charge for asset I01: 56,695.35 X 12 / 36 = 18,898.45
- Charge for asset I02: 3,304.65 X 12 / 42 = 944.19

(5)
Net values after impairment loss reversal:
- Asset I01: 56,695.35 – 18,898.45 + 3,304.65 = 41,101.55
- Asset I02: 3,304.65 – 944.19 + 192.62 = 2,553.08

* Example 2: Accounting and Fiscal depreciation plan, due to an impairment loss.

- Depreciation start date: 01/01/2002
- Asset value: 1,000
- Accounting method: linear over 10 years
- Fiscal method: linear over 10 years
- Current fiscal year: [01/01/2006 - 31/12/2006]
- On 12/31/2006, there is an impairment loss of 200

Depreciation plan Accounting :

Fiscal year	Reval.	Charge	Total	Write-off	Transfer	Impairm. balance	NV
2002	1,000	100	100				900
2003	1,000	100	200				800
2004	1,000	100	300				700
2005	1,000	100	400				600
2006	1,000	100	500	200		200	300
2007	300	60	560		(1) 40	(3) 160	(2) 240
2008	300	60	620		(1) 40	120	180
2009	300	60	680		(1) 40	80	120
2010	300	60	740		(1) 40	40	60
2011	300	60	800		(1) 40	0	0

 
(1) "Theoretical" charge - "actual" charge, i.e.: 100 - 60 = 40
(2) Net value after impairment loss - "actual" charge, i.e.: 300 - 60 = 240
(3) FY end impairment loss balance = FY start balance - Transfer, i.e.: 200 - 40 = 160

Depreciation plan Fiscal:

Fiscal year	Reval.	Charge	Total	NV	Exceptional provision	Exceptional reversal
2002	1,000	100	100	900	0	0
2003	1,000	100	200	800	0	0
2004	1,000	100	300	700	0	0
2005	1,000	100	400	600	0	0
2006	1,000	100	500	500	0	0
2007	1,000	100	600	400	0	0
2008	1,000	100	700	300	0	0
2009	1,000	100	800	200	0	0
2010	1,000	100	900	100	0	0
2011	1,000	100	1,000	0	0	0

 
The fiscal depreciation plan is the same after the impairment loss recorded on the accounting depreciation plan.
No exceptional depreciation is generated.

* Example 3: Accounting and Fiscal depreciation plan, due to an impairment loss.

- Depreciation start date: 01/01/2002
- Asset value: 2,000
- Accounting method: linear over 10 years
- Fiscal method: linear over 8 years
- Current fiscal year: [01/01/2006 - 31/12/2006]
- On 12/31/2006, there is an impairment loss of 600

Depreciation plan Accounting :

Fiscal year	Reval.	Charge	Total	Write-off	Transfer	Impairm. balance	NV
2002	2,000	200	200				1,800
2003	2,000	200	400				1,600
2004	2,000	200	600				1,400
2005	2,000	200	800				1,200
2006	2,000	200	1,000	600		600	400
2007	400	80	1,080		(1) 120	(3) 480	(2) 320
2008	400	80	1,160		(1) 120	360	240
2009	400	80	1,240		(1) 120	240	160
2010	400	80	1,320		(1) 120	120	80
2011	400	80	1,400		(1) 120	0	0

 
(1) "Theoretical" charge - "actual" charge, i.e.: 200 - 80 = 120
(2) Net value after impairment loss - "actual" charge, i.e.: 400 - 80 = 320
(3) FY end impairment loss balance = FY start balance - Transfer, i.e.: 600 - 120 = 480

Depreciation plan Fiscal :

Fiscal year	Reval.	Charge	Total	NV	Exceptional provision	Exceptional reversal
2002	2,000	250	250	1,750	(4) 50	0
2003	2,000	250	500	1,500	(4) 50	0
2004	2,000	250	750	1,250	(4) 50	0
2005	2,000	250	1,000	1,000	(4) 50	0
2006	2,000	250	1,250	750	(4) 50	0
2007	2,000	250	1,500	500	(4) 50	0
2008	2,000	250	1,750	250	(4) 50	0
2009	2,000	250	2,000	0	(4) 50	0
2010	2,000	0	2,000	0	0	(4) 200
2011	2,000	0	2,000	0	0	(4) 200

 
4) Fiscal charge - (Standard accounting charge "". + "exceptional" accounting charge) or fiscal charge - "theoretical" accounting charge.

Error messages

The only error messages are the generic ones.

"Multi-company impairment loss impossible for this plan: the current period is not the same for all companies"

This message appears when the impairment loss concerns a CGU whose assets belong to different companies that do not have the same current period in the selected plan context.

"Impairment loss increase impossible, the selected assets are not impaired." 

An impairment loss reversal is reported when the recoverable value becomes greater than the Net value but this reversal cannot be saved if no impairment loss of a plan has taken place over one of the previous periods.
In this case, a revaluation should be conducted to take this value reversal into account.

"Some of the selected assets have their own market values and cannot be impaired"

This message is displayed when one of the assets belonging to the CGU has its own market value and the IMLNSPNBV - Impair if Market value > NV parameter is set to "No". In this case, the asset is not impacted by the impairment loss and receives no part from the impairment loss whilst this market value is greater than the net value of the asset.

"A company calculation must be carried out in order to impair"

An impairment loss is recorded after having calculated the depreciations for the period or the fiscal year. As a consequence, the impairment loss processing is only authorized if a period (or fiscal year) calculation has been carried out for all the companies for which there are assets in the CGU.

"The asset has been revaluated in the period, it cannot be impaired"

During the same period, it is not possible to perform both a revaluation and a depreciation on the same plan. If one of the assets in the CGU has been reevaluated, it is necessary to have previously canceled this asset revaluation to carry out the impairment loss.

Tables used

Refer to documentation Implementation