Vous êtes sur la page 1sur 1

IAS 16 : Property,plant&equipment

IAS 36: Impairment asset(loss in value of an asset) (its not covered by depreciation which is regular
reduction of value of an asset) (this is physical damage of an asset)

3 main reasons why depreciation is necessary?


To know the replacement cost of an asset

To know the true and fair value of concern

To know the net income and calculate exact tax(why because it lower the taxes)

Which is not under impairment:

IAS2: Inventories

IAS13: Investment

IAS7: WIP of construction contracts

IAS15: plan asset (NRV)

IAS22: DTA (deferred Tax Asset)

Impairment= carrying value of an asset-Recoverable amount

Cost-Accumulated depreciation (Book value of the asset)

IAS7: cashflow statement:how is the business generating money

1. Cash 2. Bank balances

Any short term investment which can be convertible in to cash (holding period is < 3 months)

It not following accrual principal

It divided into 3 parts:

1. Operating activities: purchases, sells, salaries exp,general exp (day to day operation of the
business which due to the profit & loss)
2. Investing activities: equity of share of any other company, give loan & get interest for bank
interest is operating activities
3. Financing activities :