[Illustrative Checklist] Disclosure requirements under Ind AS 36 | Impairment of Assets

The objective of Ind AS 36, Impairment of Assets, is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through the use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognize an impairment loss. The Standard also specifies when an entity should reverse an impairment loss and prescribes disclosures.

As per the requirement of this standard, an entity is required to follow the below-mentioned disclosure requirements:

I. For each class of assets whether following has been disclosed:

(a) The amount of impairment losses recognized in profit or loss during the period and the line item(s) of the statement of profit and loss in which those impairment losses are included,

(b) The amount of reversals of impairment losses recognized in profit or loss during the period and the line item(s) of the statement of profit and loss in which those impairment losses are reversed,

(c) The amount of impairment losses on revalued assets recognized in other comprehensive income during the period, if any, and

(d) If any, the amount of reversals of impairment losses on revalued assets recognized in other comprehensive income during the period.

Note: The information required in para 126 may be presented with other information disclosed for the class of assets. A class of assets is a grouping of similar assets used in an entity’s operations.

II. Whether the following for each reportable segment has been disclosed in case segment information is reported in accordance with Ind AS 108,

(a) The amount of impairment losses recognized in profit or loss and in other comprehensive income during the period, and

(b) The amount of reversals of impairment losses recognized in profit or loss and in other comprehensive income during the period.

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