DEFERRED TAX TAX EFFECT OF TIMING DIFFERENCES TIMING DIFFERENCES DIFFERENCES BETWEEN TAXABLE INCOME & ACCOUNTING INCOME FOR A PERIOD THAT ORIGINATE IN ONE PERIOD & ARE CAPABLE OF REVERSAL IN ONE OR MORE SUBSEQUENT PERIODS PERMANENT DIFFERENCES DIFFERENCES BETWEEN TAXABLE & ACCOUNTING INCOME FOR A PERIOD THAT ORIGINATE IN ONE PERIOD & DO NOT REVERSE SUBSEQUENTLY
DEFINITIONS TIMING DIFFERENCES ARISE BECAUSE THE PERIOD IN WHICH SOME ITEMS OF REVENUE & EXPENSES ARE INCLUDED IN TAXABLE INCOME DO NOT COINCIDE WITH THE PERIOD IN WHICH SUCH ITEMS OF REVENUE & EXPENSES ARE INCLUDED OR CONSIDERED IN ARRIVING AT ACCOUNTING INCOME UNABSORBED DEPRECIATION & CARRY FORWARD OF LOSSES WHICH CAN BE SET- OFF AGAINST FUTURE TAXABLE INCOME ARE ALSO CONSIDERED AS TIMING DIFFERENCES AND RESULT IN DEFERRED TAX ASSETS, SUBJECT TO CONSIDERATION OF PRUDENCE TIMING DIFFERENCES THE DIFFERENCES BETWEEN TAXABLE & ACCOUNTING INCOME CAN BE CLASSIFIED INTO PERMANENT & TIMING DIFFERENCES. RECOGNITION TAX EXPENSE FOR THE PERIOD, COMPRISING CURRENT TAX & DEFERRED TAX, SHOULD BE INCLUDED IN DETERMINATION OF THE NET PROFIT OR LOSS FOR THE PERIOD TAX EFFECT OF A TIMING DIFFERENCE THAT RESULTS IN A DEFERRED TAX ASSET IS AN EXPENSE PROVIDED IN P & L BUT NOT ALLOWED AS A DEDUCTION THIS WILL REVERSE WHEN DEDUCTION IS ALLOWED IN FUTURE YEARS. TAX EFFECT OF A TIMING DIFFERENCE THAT RESULTS IN A DEFERRED TAX LIABILITY IS THE HIGHER CHARGE OF DEPRECIATION ALLOWABLE COMPARED TO THE DEPRECIATION PROVIDED IN P & L THIS WILL REVERSE WHEN DEDUCTION IS ALLOWED IN FUTURE YEARS. PERMANENT DIFFERENCES DO NOT RESULT IN DEFERRED TAX ASSETS OR DEFERRED TAX LIABILITIES. RECOGNITION THE DEFERRED TAX DUE TO TIMING DIFFERENCES WHICH REVERSE DURING TAX HOLIDAY PERIOD IS NOT RECOGNISED TO THE EXTENT GROSS TOTAL INCOME IS SUBJECT TO THE DEDUCTION IF PREVIOUS CALCULATIONS SHOW THAT RECOVERABLE AMOUNT IS GREATER THAN ITS CARRYING AMOUNT, THE ENTERPRISE NEED NOT RE-ESTIMATE IF NO EVENTS OCCURRED TO ELIMINATE THAT DIFFERENCE. IF PREVIOUS ANALYSIS MAY SHOW THAT RECOVERABLE AMOUNT IS NOT SENSITIVE TO ONE (OR MORE) OF THE INDICATIONS. IF THERE IS AN INDICATION THAT AN ASSET MAY BE IMPAIRED, THIS MAY INDICATE THAT THE REMAINING USEFUL LIFE, THE DEPRECIATION METHOD OR THE RESIDUAL VALUE TO BE REVIEWED & ADJUSTED UNDER THE AS APPLICABLE, EVEN IF NO IMPAIRMENT LOSS IS RECOGNISED FOR THE ASSET. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. INTERNAL SOURCES OF INFORMATION IF EITHER OF NET SELLING PRICE AND ITS VALUE IN USE EXCEEDS CARRYING AMOUNT, THE ASSET IS NOT IMPAIRED & NEED NOT ESTIMATE THE OTHER AMOUNT. IF NOT POSSIBLE TO DETERMINE NET SELLING PRICE, THEN THE RECOVERABLE AMOUNT OF THE ASSET MAY BE TAKEN TO BE ITS VALUE IN USE. IF THERE IS NO REASON TO BELIEVE VALUE IN USE MATERIALLY EXCEEDS ITS NET SELLING PRICE, RECOVERABLE AMOUNT MAY BE TAKEN AS NET SELLING PRICE. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. MEASUREMENT OF RECOVERABLE AMOUNT PRICE IN THE BINDING SALE AGREEMENT NO BINDING SALE AGREEMENT, BUT HAS AN ACTIVE MARKET MARKET PRICE COSTS OF DISPOSAL WHERE MARKET PRICE IS CURRENT BID PRICE & WHERE CURRENT BID PRICE IS UNAVAILABLE, PRICE OF THE MOST RECENT TRANSACTION (ONLY IF THERE HAS NOT BEEN A SIGNIFICANT CHANGE IN ECONOMIC CIRCUMSTANCES BETWEEN THE TRANSACTION DATE & THE DATE OF ESTIMATE). IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. NET SELLING PRICE NO BINDING SALE AGREEMENT OR ACTIVE MARKET THE AMOUNT THAT AN ENTERPRISE COULD OBTAIN IN AN ARMS LENGTH TRANSACTION BETWEEN KNOWLEDGEABLE, WILLING PARTIES, AFTER DEDUCTING THE COSTS OF DISPOSAL NET SELLING PRICE DOES NOT REFLECT A FORCED SALE, UNLESS MANAGEMENT IS COMPELLED TO SELL IMMEDIATELY. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. NET SELLING PRICE IN MEASURING VALUE IN USE CF PROJECTIONS BASED ON REASONABLE ASSUMPTIONS BEST ESTIMATE OF THE SET OF ECONOMIC CONDITIONS EXIST OVER THE REMAINING USEFUL LIFE OF THE ASSET. GREATER WEIGHT GIVEN TO EXTERNAL EVIDENCE
CF PROJECTIONS BASED ON RECENT FINANCIAL BUDGETS PROJECTIONS FOR A MAXIMUM PERIOD OF 5 YEARS,
CF PROJECTIONS BEYOND THE PERIOD SHOULD BE ESTIMATED EXTRAPOLATING THE PROJECTIONS USING A STEADY OR DECLINING GROWTH RATE, THIS GROWTH RATE SHOULD NOT EXCEED THE LONG-TERM AVERAGE GROWTH RATE IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. BASIS FOR ESTIMATES OF FUTURE CASH FLOWS DETAILED, EXPLICIT & RELIABLE FINANCIAL BUDGETS FOR MORE THAN 5 YEARS ARE NOT AVAILABLE MAY USE FINANCIAL BUDGETS FOR MORE THAN 5 YEARS IF CONFIDENT THAT THESE PROJECTIONS ARE RELIABLE & CAN DEMONSTRATE ITS ABILITY, BASED ON PAST EXPERIENCE, TO FORECAST CFs ACCURATELY OVER THAT LONGER PERIOD FAVOURABLE CONDITIONS, COMPETITORS ARE LIKELY TO ENTER THE MARKET & RESTRICT GROWTH. DIFFICULT TO EXCEED AVERAGE GROWTH OVER LONG TERM IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. BASIS FOR ESTIMATES OF FUTURE CASH FLOWS ESTIMATES OF FUTURE CFs & THE DISCOUNT RATE REFLECT PRICE INCREASES DUE TO GENERAL INFLATION. IF DISCOUNT RATE INCLUDES SUCH EFFECT FUTURE CFs ARE ESTIMATED IN NOMINAL TERMS. IF DISCOUNT RATE EXCLUDES SUCH EFFECT FUTURE CFs ARE ESTIMATED IN REAL TERMS BUT INCLUDE FUTURE SPECIFIC PRICE INCREASES OR DECREASES. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. COMPOSITION OF ESTIMATES OF FUTURE CASH FLOWS PROJECTIONS OF CASH OUTFLOWS INCLUDE FUTURE OVERHEADS THAT CAN BE ATTRIBUTED DIRECTLY, OR ALLOCATED ON A REASONABLE & CONSISTENT BASIS, TO THE USE OF THE ASSET. CARRYING AMOUNT OF AN ASSET UNDER CONSTRUCTION ESTIMATE OF FUTURE CFs INCLUDES AN ESTIMATE OF FURTHER CASH OUTFLOW TO BE INCURRED BEFORE THE ASSET IS READY FOR USE OR SALE. ESTIMATES OF FUTURE CASH FLOWS DO NOT INCLUDE LARGELY INDEPENDENT CASH INFLOWS CASH OUTFLOWS ALREADY BEEN RECOGNISED AS LIABILITIES IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. COMPOSITION OF ESTIMATES OF FUTURE CASH FLOWS ESTIMATES OF FUTURE CASH FLOWS SHOULD NOT INCLUDE A FUTURE RESTRUCTURING NOT YET COMMITTED FUTURE CAPITAL EXPENDITURE TO ENHANCE PERFORMANCE THE SAME WILL NOT BE REFLECTED IN VALUE IN USE RESTRUCTURING PROGRAMME IS PLANNED AND CONTROLLED BY MANAGEMENT AND THAT MATERIALLY CHANGES EITHER THE SCOPE OF BUSINESS OR ITS MANNER ESTIMATES OF FUTURE CASH FLOWS SHOULD NOT INCLUDE CASH INFLOWS OR OUTFLOWS FROM FINANCING ACTIVITIES INCOME TAX RECEIPTS OR PAYMENTS IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. COMPOSITION OF ESTIMATES OF FUTURE CASH FLOWS IN ESTIMATING NET CASH FLOWS TO BE RECEIVED (OR PAID) FOR THE DISPOSAL OF AN ASSET USE PRICES ON DATE OF ESTIMATE FOR SIMILAR ASSETS ADJUSTED FOR BOTH FUTURE PRICE INCREASES DUE TO GENERAL INFLATION & SPECIFIC FUTURE PRICE INCREASES IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. COMPOSITION OF ESTIMATES OF FUTURE CASH FLOWS FUTURE CASH FLOWS ARE ESTIMATED IN THE CURRENCY GENERATED AND THEN DISCOUNTED USING A RATE APPROPRIATE TRANSLATES THE PV OBTAINED USING EXCHANGE RATE AT THE BALANCE SHEET DATE IN AS 11, ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREX RATES, AS CLOSING RATE. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. FOREIGN CURRENCY FUTURE CASH FLOWS THE DISCOUNT RATE(S) SHOULD BE A PRE-TAX RATE(S) THAT REFLECT(S) CURRENT MARKET OF TVM & RISKS SPECIFIC TO THE ASSET. IT SHOULDNT REFLECT RISKS ALREADY ADJUSTED IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. DISCOUNT RATE A RATE THAT REFLECTS CURRENT MARKET ASSESSMENTS OF TVM & THE RISKS SPECIFIC TO THE ASSET IS THE RETURN THAT INVESTORS WOULD REQUIRE IF THEY CHOOSE AN INVESTMENT THAT WOULD GENERATE CASH FLOWS OF AMOUNTS, TIMING AND RISK PROFILE EQUIVALENT TO THOSE THAT THE ENTERPRISE EXPECTS TO DERIVE FROM THE ASSET. THIS RATE IS ESTIMATED FROM THE RATE IMPLICIT IN CURRENT MARKET TRANSACTIONS FOR SIMILAR ASSETS OR FROM WACC OF A LISTED ENTERPRISE THAT HAS A SINGLE ASSET OR PORTFOLIO SIMILAR IN TERMS OF SERVICE POTENTIAL & RISKS. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. THE PURPOSE IS TO ESTIMATE A MARKET ASSESSMENT OF TVM & RISKS THE ENTERPRISE MAY CONSIDER WACC, INCREMENTAL BORROWING RATE & MARKET BORROWING RATES AND ARE ADJUSTED TO REFLECT THE WAY THAT THE MARKET WOULD ASSESS THE SPECIFIC RISKS & TO EXCLUDE RISKS THAT ARE NOT RELEVANT. COUNTRY RISK, CURRENCY RISK, PRICE RISK & CASH FLOW RISK DISCOUNT RATE THE DISCOUNT RATE IS INDEPENDENT OF THE CAPITAL STRUCTURE & THE WAY THE ENTERPRISE FINANCED THE PURCHASE OF THE ASSET BECAUSE THE FUTURE CFs EXPECTED TO ARISE FROM AN ASSET DO NOT DEPEND ON THE WAY IN WHICH THE ENTERPRISE FINANCED THE PURCHASE OF THE ASSET. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. WHEN THE BASIS FOR RATE IS POST-TAX, IT IS ADJUSTED TO PRE-TAX RATE. DISCOUNT RATE NORMALLY USES A SINGLE RATE FOR ESTIMATE OF VALUE IN USE. HOWEVER, USES SEPARATE RATES FOR DIFFERENT FUTURE PERIODS WHERE VALUE IN USE IS SENSITIVE TO A DIFF. IN RISKS FOR DIFF. PERIODS OR TO THE TERM STRUCTURE OF INTEREST RATES. RECOGNISED AS AN EXPENSE UNLESS CARRIED AT REVALUED AMOUNT AS PER AS 10, IN WHICH CASE TREATED AS A REVALUATION DECREASE IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. RECOGNITION AND MEASUREMENT OF AN IMPAIRMENT LOSS WHEN IMPAIRMENT LOSS EXCEEDS CARRYING AMOUNT, RECOGNISE A LIABILITY IF REQUIRED BY ANOTHER AS. AFTER RECOGNITION, DEPRECIATION SHOULD BE ADJUSTED TO ALLOCATE THE REVISED CARRYING AMOUNT, LESS ITS RESIDUAL VALUE (IF ANY), ON A SYSTEMATIC BASIS OVER ITS REMAINING USEFUL LIFE. ANY RELATED DEFERRED TAX ASSETS OR LIABILITIES ARE DETERMINED UNDER AS 22 RECOVERABLE AMOUNT OF AN ASSET CANNOT BE DETERMINED IF VALUE IN USE CANNOT BE ESTIMATED TO BE CLOSE TO ITS NET SELLING PRICE DOES NOT GENERATE INDEPENDENT CASH INFLOWS FROM CONTINUING USE CAN BE DETERMINED ONLY FOR THE ASSETS CASH-GENERATING UNIT IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. IDENTIFICATION OF THE CASH-GENERATING UNIT TO WHICH IT BELONGS IF RECOVERABLE AMOUNT CANNOT BE DETERMINED FOR AN ASSET, AN ENTERPRISE IDENTIFIES THE LOWEST AGGREGATION OF ASSETS THAT GENERATE LARGELY INDEPENDENT CASH INFLOWS FROM CONTINUING USE. CASH INFLOWS FROM CONTINUING USE ARE INFLOWS RECEIVED FROM PARTIES OUTSIDE THE REPORTING ENTERPRISE. IF AN ACTIVE MARKET EXISTS FOR THE OUTPUT PRODUCED BY AN ASSET OR ASSETS, SHOULD BE IDENTIFIED AS A CASH-GENERATING UNIT WHERE BEST ESTIMATE OF FUTURE MARKET PRICES SHOULD BE USED IN DETERMINING THE VALUE IN USE OF ALL CASH-GENERATING UNITS THE CARRYING AMOUNT OF A CASH-GENERATING UNIT INCLUDES ASSETS THAT CAN BE ATTRIBUTED DIRECTLY ON A REASONABLE & CONSISTENT BASIS, TO CASH-GENERATING UNIT & THAT WILL GENERATE FUTURE CASH INFLOWS DOES NOT INCLUDE ANY RECOGNISED LIABILITY IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. RECOVERABLE & CARRYING AMOUNT OF A CASH-GENERATING UNIT MAY HAVE TO CONSIDER CERTAIN RECOGNISED ASSETS OR LIABILITIES TO DETERMINE THE RECOVERABLE AMOUNT OF A CASH-GENERATING UNIT. IN ORDER TO PERFORM A MEANINGFUL COMPARISON, CARRYING AMOUNT IS DEDUCTED/ADDED FOR BOTH VALUE IN USE & CARRYING AMOUNT. IF AN ACTIVE MARKET EXISTS FOR THE OUTPUT PRODUCED BY AN ASSET OR ASSETS, SHOULD BE IDENTIFIED AS A CASH-GENERATING UNIT WHERE BEST ESTIMATE OF FUTURE MARKET PRICES SHOULD BE USED IN DETERMINING THE VALUE IN USE OF ALL CASH-GENERATING UNITS IDENTIFY WHETHER GOODWILL OF THE CASH-GENERATING UNIT IS RECOGNISED IN THE FINANCIAL STATEMENTS, IF YES, THEN PERFORM BOTTOM-UP TEST TO IDENTIFY WHETHER ITS CARRYING AMOUNT CAN BE ALLOCATED ON A REASONABLE BASIS TO THE CASH- GENERATING UNIT THEN, COMPARE THE RECOVERABLE AMOUNT TO ITS CARRYING AMOUNT IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. GOODWILL IF NOT PERFORM A TOP-DOWN TEST TO IDENTIFY THE SMALLEST CASH-GENERATING UNIT THEN, COMPARE THE RECOVERABLE AMOUNT OF THE LARGER CASH- GENERATING UNIT TO ITS CARRYING AMOUNT BECAUSE CORPORATE ASSETS DO NOT GENERATE SEPARATE CASH INFLOWS, THE RECOVERABLE AMOUNT CANNOT BE DETERMINED UNLESS DISPOSED OFF IF THERE IS AN INDICATION OF IMPAIREMENT, RECOVERABLE AMOUNT IS DETERMINED FOR THE CASH-GENERATING UNIT TO WHICH IT BELONGS, COMPARED TO THE CARRYING AMOUNT OF THIS CASH-GENERATING UNIT IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. CORPORATE ASSETS IF THE CARRYING AMOUNT CAN BE ALLOCATED ON A REASONABLE BASIS TO THE CASH-GENERATING UNIT, APPLY THE BOTTOM-UP TEST ONLY IF NOT, APPLY BOTH THE BOTTOM- UP AND TOP-DOWN TESTS ALLOCATED TO REDUCE THE CARRYING AMOUNT OF THE ASSETS OF THE UNIT FIRST, TO GOODWILL ALLOCATED TO THE CASH-GENERATING UNIT; AND THEN, TO OTHERS ON A PRO-RATA BASIS BASED ON THEIR CARRYING AMOUNT IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. IMPAIRMENT LOSS FOR A CASH-GENERATING UNIT IN ALLOCATING AN IMPAIRMENT LOSS THE CARRYING AMOUNT SHOULD NOT BE REDUCED BELOW THE HIGHEST OF
1. ITS NET SELLING PRICE (OR) 2. ITS VALUE IN USE (OR) 3. ZERO AN IMPAIRMENT LOSS RECOGNISED FOR AN ASSET IN PRIOR PERIODS SHOULD BE REVERSED IF THERE HAS BEEN A CHANGE IN THE ESTIMATES OF CASH INFLOWS, OUTFLOWS OR DISCOUNT RATES USED TO DETERMINE RECOVERABLE AMOUNT SINCE THE LAST IMPAIRMENT LOSS WAS RECOGNISED. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. REVERSAL OF AN IMPAIRMENT LOSS THEN CARRYING AMOUNT SHOULD BE INCREASED TO RECOVERABLE AMOUNT. THAT INCREASE IS A REVERSAL OF AN IMPAIRMENT LOSS. VALUE IN USE MAY BECOME GREATER THAN CARRYING AMOUNT BECAUSE PV OF FUTURE CASH INFLOWS INCREASES AS THEY BECOME CLOSER. HOWEVER, THE SERVICE POTENTIAL OF THE ASSET HAS NOT INCREASED. THEREFORE, AN IMPAIRMENT LOSS IS NOT REVERSED BECAUSE OF THE PASSAGE OF TIME (UNWINDING OF THE DISCOUNT), EVEN IF RECOVERABLE AMOUNT BECOMES HIGHER THAN CARRYING AMOUNT. INCREASED CARRYING AMOUNT DUE TO A REVERSAL SHOULD NOT EXCEED THE CARRYING AMOUNT THAT WOULD HAVE BEEN DETERMINED HAD NO IMPAIRMENT LOSS RECOGNISED IN PRIOR PERIODS. IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. REVERSAL OF AN IMPAIRMENT LOSS FOR AN INDIVIDUAL ASSET REVERSAL OF AN IMPAIRMENT LOSS FOR A CASH-GENERATING UNIT IN ALLOCATING A REVERSAL FOR A CASH-GENERATING UNIT THE CARRYING AMOUNT SHOULD NOT BE INCREASED ABOVE THE LOWER OF
ITS RECOVERABLE AMOUNT & CARRYING AMOUNT (IF NO IMPAIRMENT LOSS RECOGNISED IN PRIOR PERIODS) AN IMPAIRMENT LOSS RECOGNISED FOR GOODWILL SHOULD NOT BE REVERSED IN A SUBSEQUENT PERIOD UNLESS 1. THE IMPAIRMENT LOSS WAS CAUSED BY A SPECIFIC EXTERNAL EVENT OF AN EXCEPTIONAL NATURE THAT IS NOT EXPECTED TO RECUR & 2. SUBSEQUENT EXTERNAL EVENTS HAVE OCCURRED THAT REVERSE THE EFFECT OF THAT EVENT IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. REVERSAL OF AN IMPAIRMENT LOSS FOR GOODWILL A SPECIFIC EXTERNAL EVENT AN EVENT THAT IS OUTSIDE OF THE CONTROL OF THE ENTERPRISE. NEW REGULATIONS THAT SIGNIFICANTLY CURTAIL OPERATING ACTIVITIES, OR DECREASE THE PROFITABILITY, OF THE BUSINESS TO WHICH IT RELATES. FOR EACH CLASS OF ASSETS 1. IMPAIRMENT LOSSES RECOGNISED IN P & L 2. REVERSALS OF IMPAIRMENT LOSSES RECOGNISED IN P & L 3. IMPAIRMENT LOSSES RECOGNISED AGAINST REVALUATION SURPLUS 4. REVERSALS OF IMPAIRMENT LOSSES RECOGNISED IN REVALUATION SURPLUS IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. DISCLOSURE IF AN IMPAIRMENT LOSS IS RECOGNISED OR REVERSED AND IS MATERIAL AN ENTERPRISE SHOULD DISCLOSE
1. EVENTS & CIRCUMSTANCES THAT LED TO THE RECOGNITION OR REVERSAL 2. THE IMPAIRMENT LOSS RECOGNISED OR REVERSED 3. THE NATURE & THE REPORTABLE SEGMENT OF AN INDIVIDUAL ASSET 4. DESCRIPTION, IMPAIRMENT LOSS RECOGNISED OR REVERSED & CURRENT & FORMER WAY OF AGGREGATING ASSETS FOR A CASH-GENERATING UNIT 5. RECOVERABLE AMOUNT IS ITS NET SELLING PRICE OR VALUE IN USE 6. BASIS USED TO DETERMINE NET SELLING PRICE 7. DISCOUNT RATE USED IN CURRENT & PREVIOUS ESTIMATE OF VALUE IN USE IMPAIRMENT = CARRYING AMOUNT RECOVERABLE AMOUNT. DISCLOSURE IF IMPAIRMENT LOSSES RECOGNISED (REVERSED) DURING THE PERIOD ARE MATERIAL IN AGGREGATE TO THE FINANCIAL STATEMENTS
1. MAIN CLASSES OF ASSETS AFFECTED BY IMPAIRMENT LOSSES (REVERSALS OF IMPAIRMENT LOSSES) 2. THE MAIN EVENTS AND CIRCUMSTANCES THAT LED TO THE RECOGNITION (REVERSAL) OF THESE IMPAIRMENT LOSSES