Signs of not conducting an impairment test. Termination of recognition (disposal) of fixed assets. Procedure for conducting an impairment test and documentary

IAS 36 "Impairment of Assets" and explanation of the CRMFO (IFRIC) 10 "Interim Financial Statements and Impairment" is considered about the accuracy of non-financial assets. Standard requirements relate to all assets, except:

• investment property facilities taken into account at fair value;
• stocks;
• biological assets taken into account at fair value less costs for sale;
• deferred tax assets;
• assets arising from construction contracts;
• assets arising from remuneration to employees;
• non-current assets intended for sale;
• delayed costs and financial assets (except investment in subsidiaries, associated companies and joint ventures).

Impairment of financial instruments is in the regulation of IFRS (IFRS) 9, IFRS (IAS) 21, IAS 32, IAS 39 and clarifications to them.

IAS 36 considers impairment in three directions: impairment of a separate asset, impairment of a unit generating cash flow (TEG), impairment of business reputation. The concepts of "reserve" and "impairment" should be distinguished. In practice, the term "reserve" is often used in the value of the estimated amount of loans or similar impairment losses. But, unlike real reserves, which considers IAS 37 "Reserves, conditional obligations and conditional assets", the impairment is not a reserved obligation, but is an adjustment of the value of the corresponding assets.

Note that among Russian PBUs such a standard for the impairment of assets. There is only one reservation in PBU 14/2007 "Accounting for intangible assets". Thus, in paragraph 22 of the provisions it is indicated that intangible assets can be checked for impairment in the manner prescribed by IFRS. If we talk about the regulation of this aspect of reporting in US GAAP, then we can note a lot of general moments with IFRS in the approach to impairment. However, a large number of differences lies in detail. For example, US GAAP does not require discount cash flows when determining the reimbursement of the amount, and when determining the fair price of the transaction, there is not enough use of the price of the active market (there are some more criteria), and the forecast periods are also different (IFRS recommends five years, US GAAP is the term of use of the asset by the company) etc.

Step 1. Determine the assets you need to test for impairment

To begin with, it is necessary to understand whether it is worth exposing an impairment testing. To do this, it is necessary to analyze the indicators indicating possible impairment, as well as determine the degree of sensitivity of assets to these indicators. The result of this stage will be the decision on testing or refusing it.

The standard indicates external (for example, negative changes in external conditions of carrying out activities or legal environment, the growth of market interest rates, the emergence of large competitors) and internal signs (for example, fell the effectiveness of the use of an asset, a physical damage to the asset, etc.) occurred.). In some cases, it is necessary to conduct an impairment test, even despite the lack of signs of impairment.

Note!

This check is absolutely not necessary to hold on December 31. It can be done at any other time of the year. The main thing is that it is carried out at the same time every year. That is, if in 2010 the company tests good to impairment on August 30, then in 2011, in 2012, etc. It is for this date that you need to check.

Annual compulsory checking for impairment is necessary in relation to goodwill, as well as intangible assets, not yet ready to use either who have an indefinite period. useful use.

At this stage, it is important to determine who in the company will decide that any asset must be subjected to "markdown". Ideal if it is a person from Business. This may be an employee of the manufacturing department, logistics, an employee of a property department, but not an accountant, who did not even see this asset and has no information about the future fate of this object, the dynamics of prices for it, the market situation.

However, this does not mean that the accountant should simply transfer the amount at the calculation of the responsible person into the accounting system. He needs to understand the calculation methodology, make sure that it corresponds to the methodology of past years, as well as the principles laid down in IFRS. It should also be explained by the responsible specialist, why do these calculations need and what kind of report you need to get. Perhaps you will have to consult with your colleagues or auditors if any aspects of the calculation cause doubt.

Step 2. Calculate the reimbursable value of the asset

After you decide that you need to test for impairment, it is necessary to calculate the reimbursable value of the asset. This is the largest of two quantities:

• the value of the use of an asset (the discounted value of future cash flows that are expected to be obtained from the asset as a result of the continuation of use and subsequent alienation);
• fair cost less sales costs.

Between the two values \u200b\u200bthere is a principal difference. Fair cost reflects the estimates and information available from well-informed and want to make such an operation of buyers and sellers. The value of use, on the contrary, reflects the assessments of a particular organization.

Note!

Goodwill check on the subject of impairment always at the level of the EDP or the NEG Group.

Standard recommends applying an individual approach to assets. That is, it is better to check for impairment of assets in lecturer than to combine them into groups. If this is not possible (for example, too much time consuming and takes a lot of time), the assets are checked for impairment as part of a unit generating cash flows (TEG).

The unit generating cash flows is the smallest group of assets, within the framework of which funds are generated as a result of the use of relevant assets, this inflow does not depend on the inflow of funds generated by other assets or assets.

Example

In the network trading, the store with all its equipment (building, refrigeration equipment, racks, etc.) will be submitted to the EDP. In this case, the estimate, such as a refrigeration unit, is impossible separately for impairment, since this asset generates cash flows only in combination with other assets. In addition, each store most likely has its client base. It is also an important factor in the "branch". And even the fact that the store can use the same infrastructure as other shops, have one servicing back office (that is, general marketing and other operating expenses), does not play roles when highlighting the store in a separate TEG. The key factor here is the ability to generate a cash flow.

The allocation of the EDP can be one of the most difficult moments in the process of conducting an impairment test. Here you need to apply a professional judgment. Therefore, we again point out what was said at the beginning of the article - one accountant is difficult to cope with such difficult analysis as the identification of an autonomous, independent inflow of funds from the EDP. We need to seek help and consulting from specialists from other departments. In this case, employees of the scheduled department, controllers, operating managers can help.

To determine fair value, it is best to refer to the new IFRS 13. Despite the fact that this standard does not explain the concept of fair value less costs for sale, in other aspects it is quite applicable to IFRS (IAS) 36. The cost of selling in this aspect is the additional costs that are associated with the disposal (alienation) of the asset and preparation are recognized Asset to such a disposal. Commissions for banks for issuing loans or costs for income tax on the sale of an asset do not refer to such costs due to the fact that they are already recognized as an obligation.

The calculation of the value of use is based on substantiated and adequate assumptions regarding the forecasts of cash flows, which are approved by the Company's management (as part of budgets and forecasts drawn up in accordance with the principles of IFRS). Standard recommends that a period not exceeding such a period of five years. The composition of cash flows is individual for each enterprise. General is that the calculation includes cash receipts from the further use of the asset necessary for this cash costs (including overhead), as well as net cash flow from the subsequent disposal of the asset at the end of its useful use. Also an important point It is that the calculated estimates of cash flows must reflect the current state of the asset. Therefore, the future capital costs cannot be included in the calculation, which are aimed at improving the quality of the asset and the corresponding benefits from this. However, the capital costs of maintaining the current state of the asset must be included.

The value of use is sometimes difficult to determine. Therefore, you can take advantage of the next cunning: to calculate the fair cost less the cost of sale, and if it is higher than the balance sheet, then the value of use will not be necessary. It happens on the contrary: the companies are difficult to determine the fair value less costs for sale. In this case, you can use the same logic and consider first the value of use.

After the company rated future cash flows, they need to be discounted at the corresponding rate. The discount rate can be calculated by one of the following methods:

1. calculate the weighted average cost of capital (WACC) if the company has resources (analysts, databases);
2. use the weighted average cost of the company's credit portfolio (this indicator is able to count any Specialist IFRS) or get information about long-term lending rates, which can be attracted to new loans as of the evaluation date;
3. you can use the recommendation of the Federal Tariff Service and use a risk-free rate increased by 2 percent. In this case, as a rigless, it is possible to take an average rate on deposits in several "reliable" banks.

International standards are recommended to be used as a starting point to calculate the discount rate, the weighted average cost of the company's capital, but in practice it is quite difficult to calculate. Our company WACC does not count, but use the third method.

Step 3. Determine Impairment Loss

Impairment loss occurs when the carrying amount of the asset or the EDP exceeds the recoverable cost. In this case, the value of the asset in the statement of financial position reduces the amount of impairment loss. If it is a basic means or intangible asset, then you still need to proportionally reduce the amount of accumulated depreciation. Consider the following situation.

The management of the company found one of the signs of impairment of equipment producing spare parts for laptops: in the reporting period, spare parts were sold at a price below the cost. Therefore, it was decided to carry out a test for impairment of this production equipment.

The balance sheet value of the equipment is 290,000 rubles. Fair value minus costs for sale (counted by analysts of the company) is 120,000 rubles. The expected net inflow of funds from the equipment in the next three years (the remaining time life) is equal to 100,000 rubles per year. Discount rate is 10 percent. Accordingly, the net present inflow of cash in three years will be 248 684 rubles. (100 000: (1 + 0.1) + 100 000: (1 + 0.1) 2 + 100 000: (1 + 0.1) 3). This value is the value of the use of the asset. First you need to compare it with a fair value and more (248 684 rubles) Compare with the book value of the equipment. As a result, we obtain an impairment loss in the amount of 41,316 rubles. (290 000 - 248 684).

Different options for exceeding the three types of value of assets and outcomes of this comparison are shown in Table 1.

Table 1.definition of assets impairment loss

Step 4. Recognize an impairment loss

The impairment loss, as well as the amount of its recovery, is recognized as part of profit or loss for the period. Most often, impairment loss reflect a separate line as part of some expenses with the disclosure of relevant information in explanations to financial statements.

Based on the conditions of the situation discussed above, the company will make the following wiring:

Note!

If any of the assets in the composition of the EDP clearly depreciated, an impairment loss should be attributed first to this asset. Then the remaining amount should be attributed to Goodwil. If the EDP impairment loss exceeds the cost of goodwill, then further write-offs produce in proportion to the book value of the remaining assets.

It should be remembered that if the asset was revalued, then the loss from its impairment is recognized as part of the other aggregate profits and are represented in the reassessment reserve in the part in which the amount of the loss covers the amount of previously recognized accommodation of the same asset. If the loss against impairment is more accumulated preamp, the difference is referred to the financial result.

With the recognition of an impairment loss, the situation is a bit more complicated. The EDP impairment loss must be distributed between assets that are included in this TEG. First of all, impairment loss believes to goodwill (its assessment is the most subjective), and the remaining part is distributed to other assets as part of the EDP in proportion to their book value.

At the same time, it is impossible to write off the value of the asset below:

• its fair value minus costs for sale;
• zero.

This is a fairly widespread error in accounting: with proportional separation, impairment loss often forget about the existence of such a limit.

Consider the following situation. The company acquired a taxi business together with a car fleet, licenses for $ 230,000. Excerpt from a financial statement report is given in Table 2. All assets and liabilities are reflected at fair value minus costs for sale (usually defined using external appraisers).

Table 2.Generalized statement of financial position (option 1)

Some time after the purchase, three cars are invited. The company did not have time to re-inform insurance policies to cars to the hijacking, and the insurance organization refused to compensate for a loss. The company must recognize an impairment loss. After the analysis and calculations, it turned out that the impairment loss would be more than the cost of cars. The fact is that there fell in general the cost from the use of the EDP, which is the whole business "Taxi".

According to the company's estimates, the total impairment loss is 45,000 US dollars. In this case, 30,000 US dollars need to be written off against the cost of fixed assets, and the residue is against the amount of goodwill. The financial statement report will change as shown in Table 2.

Sometimes it may turn out that the company has distributed an impairment loss between assets, taking into account the specified limit, but their cost was not enough for complete "absorption" of this loss.

Suppose that, according to the company's estimates, an impairment loss amounted to not $ 45,000, but $ 75,000. Changes in the financial statement report are presented in Table 3.

Table 3.Generalized financial statement (option 2)

In the situation under consideration, the EDP cannot depreciate up to $ 155,000 (230,000 - 75,000), since the fair value of the EDP assets minus sales costs are equal to 160,000 US dollars. In this case, the RDP is more profitable to sell separately by assets, and not continue to use in the current state.

Step 5. Analyze the situation after the reporting date.

The company should also assess the market situation after the reporting date. Most often, unexpected situations on the market, it is impossible to foresee during the construction of forecasts, so these calculations do not adjust. But such events should be taken into account when testing for impairment in the next reporting period, as well as disclose information in notes to financial statements.

At the next reporting date, you must not forget to assess the situation in order to identify any indicators that previously recognized amounts of impairment losses must be restored.

Exception - Goodwill: If it once devalued, it is never impossible to restore this amount. This is due to the fact that IFRS prohibits the recognition of the internally created goodwill, and an increase in the amount of goodwill after recognition of an impairment loss is most often associated with the creation of an internal goodwill.

Step 6. Prepare disclosures

All work, analysis, calculations for conducting an impairment test must be documented - not only for future generations, but also in order to disclose such data on pages as:

• what criteria assigned you to the idea of \u200b\u200bthe need for impairment;
• how did you consider the value of the use of an asset (if this estimate is chosen as a recoverable amount), including what a discount rate was used, what duration was the forecast period in your calculation;
• how did you consider the fair value of the asset less the cost of sale (if this estimate is chosen as a recoverable amount), including whether fair value is determined based on the active market data;
• what amount did you reflect and for what line of reporting;
• what amount losses were restored;
• a description of a unit generating cash flows - as it has been identified and evaluated;
• analysis of sensitivity showing how the change in assumptions used in the calculation will affect the amount of impairment.

As it is best to use the most conservative numbers. For example, warn users of reporting on the loss of 100 percent of the book value of the fixed assessment.

In practice, such a situation may arise when the company understands that the impairment of the asset has occurred and its carrying cost does not reflect more real pictures. However, due to certain circumstances (for example, the lack of necessary data), it is impossible to calculate correctly and reflect the amount of the loss. What to do in such cases? Here you can use the following approach: it is better not to count anything than to calculate something that the company itself does not believe. Probably this amount will be incomprehensible and user, so it can distort the reporting figures even more. In such a situation, it is necessary to disclose information about possible impairment loss in notes to prepare a reporting user to the fact that in the following periods when clarifying the situation, it can see the negative financial implications of any events.

Another slippery moment is associated with assets insurance. The company knows that something happened to the asset and it falls under the insief case. But at the time of the reporting, the situation was not clarified to the end and the insurance compensation was not yet received. How to do in that case? First, in no case is not "to kill" the amount accounts receivable For insurance with an asset impairment. These are different accounting objects, and their account must be conducted separately. And if the insurance company also disputes the amount of the loss or does not recognize this moment The case of insurance, then the company has no right to recognize any insurance asset in its reporting.

Also note that if in the state of your company there is not enough forces to independently perform an impairment test, consultants should be attracted to solve this problem and independent appraisers. This is especially true for testing for impairment of business reputation and the EDP.

Order of the Federal Service for Tariffs (FTS of Russia) of March 3, 2011 No. 57-E. "On Approval Methodical instructions By calculating the weighted average cost of own and borrowed capital, which is attracted to implement an investment project to form a technological reserve for electrical energy production facilities. "

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As a rule, companies conduct a test for the impairment of assets according to pre-regulated procedures with automatic calculations. This approach can lead to the distortion of reporting. It is important to correctly determine the cost of business and its key assets. Economic uncertainty affects the assumptions used in the assessment regarding the growth rates and discount rates, the cash flow predictions are increasingly confidential.

As a rule, the company, not the first year component of IFRS reporting, already have ready-made models for conducting such tests. The most commonly found to determine the recoverable value on the basis of value of use, since there is no free market for many assets.

How does the assets impairment test be carried out in practice?

From year to year, pre-regulated procedures are held:

• significant events are analyzed that could lead to a change in cash flow (company restructuring, the introduction of investment programs, a change in market conditions, the conditions of financing and taxation, and so on);
• a new (corrected existing) list of individual assets and units generating cash (EMDS), on which impairment testing will be carried out. The most essential EMDS is taken into account, which is distributed Goodwill (it can be separate business units, subsidiaries or segments). When drawing up, the list is taken into account both factor in materiality and signs of impairment (reducing the cost of net assets, budget failure, losses);
• the discount rate is determined (most companies use an indicator of the weighted average cost of capital, WACC - English. Weighted Average Cost of Capital);
• data on the value of assets are collected taking into account Goodwille (fixed assets, intangible assets, incomplete construction) at the date of testing, as well as expected in the medium-term (no more than 5 years), the perspective of cash flow inflows and predicted changes in the value of assets. For these goals, budgets and forecasts are used as part of the company's planning process.

Impairment testing technologies are configured to automatically calculate the value of the use of assets and the EMDS, comparing them with the book value, as well as the determination of sensitivity to the change in the calculation of the percentage of interest rates, profitability, growth rates. The use of similar models for the procedure for compiling reports under IFRS has both its advantages and disadvantages. The advantages include a methodological sequence, ensuring the comparability of data, the visuality of calculations, the ability to attract a model of ordinary accounting or finance specialists to fill out. In addition, mainly the development of models carry out experienced financial consultants in cooperation with the auditors, which is a kind of quality guarantee.

The disadvantage of this toolkit is the absence of flexibility and inability to take into account dynamic changes in the economic situation. There is an additional risk of calculating the calculations that arises due to the human factor - it is necessary to carefully monitor how neatly the indicators are collected to determine the WACC, whether the data made in the model, initial numbers and so on.

The quality of the construction of cash flow predictions in the planning and budgeting process remains an urgent problem, which is confirmed by the European Commission on Securities and Financial Markets (English ESMA - European Securities and Markets Authority).

International Asset Impairment Testing Trends

As a result of the analysis of several hundred financial statements conducted by ESMA, the poor quality of the discovered assets disclosed is revealed. Experts noted that the requirements for disclosure of information, to fulfill which the more active participation of the Guidelines are needed, are respected to a lesser extent than the requirements for information disclosure for which small efforts should be spent, which indicates the use of template phrases and models that do not reflect reality.

Moreover, as a result of unfavorable economic conditions, it is obvious to a decrease in cash flows generated by assets, and, accordingly, the likelihood of impairment losses increases. However, an increase in impairment losses was not detected.

In May 2013, the IFRS Council was published by IFRS (IAS) 36 "Impairment of Assets", which relate to the disclosure of the recoverable value of non-financial assets. The requirements for disclosing information Paragraphs 130 were supplemented, subparagraph "F" (added paragraphs (I) - (III)), and 134, subparagraph "E" (Paragraphs (IIA) and (IIB) were added). These changes are partly related to the amendments to IFRS 13 "Evaluation of fair value", partly are a response to the requests of the business community to increase the reliability and transparency of information in terms of assets impairment.

The amendments relate to the disclosure of information on the recoverable value of the impairment assets determined on the basis of fair value less expenses for sale.

Additionally reveal:

1. The level of the hierarchy of fair value in accordance with IFRS 13;
2. For assets related to the categories of the second and third level of the fair value hierarchy:
   • description of the assessment methodology used to determine the fair value less costs for disposal. If there was a change in the techniques, this fact and its causes are indicated;
   • each key assumption, on the basis of which the manual determines the fair value. The key assumptions are those assumptions to the change of which the reimbursable value of the most sensitive (change in sales, margin, the time to improve the asset or the introduction of a new product);
3. The discounting rates used in the reporting and previous periods, if the fair value minus expenditures is measured using discounted cash flow forecasts.

on the calculated estimates used to determine the recoverable value of essential EMDS containing goodwill or intangible assets with an indefinite service life, it is also necessary to further disclose the level of fair value hierarchy in accordance with IFRS 13 and describe the changes that have occurred in the assessment methods indicating the reasons.

Obviously, these amendments require additional efforts in the formation of indicators of financial statements and the preparation of appropriate disclosures.

How to improve reporting in terms of assets' impairment?

The main condition is the active involvement of the highest management management, since the assessment for impairment is not an accounting procedure. First of all, this is a business assessment that has a direct impact on the future development of the company. The manual must organize both the support of the process and the assessment of the results of impairment testing. It should be ensured to ensure the neutrality of the assessment, because not every leader is ready to recognize impairment losses.

It is necessary to use more qualitative forecast information. The assumptions used in the construction of forecasts should reflect the trends in the industry and the economy as a whole. The data obtained as a result of previous forecasts should not be mechanically extrapolated, they should be critically analyzed.

To obtain realistic forecast calculations, key assumptions must be regularly revised:

• how cash flows will change if the depth of the economic recession will be greater or less than previously assumed;
• what will happen with income if the restoration of the economy will begin before or later than the expected period;
• whether the actual rate of reducing costs laid down in the budget;
• how will affect the change in currency exchange rates or prices for raw materials in a large or smaller side.

As a result of the revision of key assumptions, the manual may come to various conclusions - from the need to change the prediction model to restructuring or reorganizing assets.

According to research, users of financial statements are interested in information about the opinion and intentions of management regarding future business development, and including events that led to impairment. Disclose data are not required, but IFRS calls not to be limited to the requirements of standards, if it increases the usefulness of reporting. Also, in the preparation of financial statements, not only sufficient disclosure of information should be ensured, but also the lack of contradictions with other data as the very reporting and other published documents, such as analytical reviews, press releases, reports for experts analysts and shareholder meetings.

document status: materials for the meeting OK

Description of the problem

The status of "accounting of intangible assets" provides for an inspection on the impairment of NMA in the manner defined by international financial reporting standards (PBU 2/2007).

IAS 36 "Impairment of Assets" Standard (IAS) prescribes the order that should be applied in the accounting of assets so that their balance sheet costs do not exceed the recoverable cost - cost future economic benefits (use for intended or selling), which the company can receive from this asset in the future.

Thus, based on the principle of diligence, the cost of assets in the balance sheet should not be overestimated.

In the event that this is the case, it is believed that the asset depreciated and the standard prescribes to reflect the impairment loss, and also determines when an impairment loss must be restored.

General rules for checking impairment NMA

Any situation that leads to a decrease in future cash receipts from the asset, is a sign of possible depreciation of the asset.

Signs indicating the impairment of NMA are divided into internal and external.

Exterior signs:

A significant reduction in the market value of the asset;

Significant changes in the economic, market and legal conditions of the Company's work;

Significant changes in the technological processes of production;

Market interest rates or other market rates of income on investments increased and this growth will have significant adverse effects for the discount rate used in calculating the value of the use and recoverable value of the asset.

Internal signs:

Moral and physical wear;

The company involves eliminating an asset;

The company involves restructuring;

Internal reporting indicators have changed, which prove that current or future use of the asset's use is worse than expected initially.

The above list of impairment signs is not exhaustive. The company can identify other signs of possible depreciation of the asset, which is why it will also be necessary to conduct an impairment check.

Verification of impairment assets can be represented as a scheme:

Basic rules for conducting an impairment test:

For NMA generating funds, which fall under the action of IFRS 36, the company must carry out a mandatory impairment test at the end of each fiscal year. If the company is an intermediate financial statements - for example, a quarterly - verification for signs of impairment should be carried out at each reporting date.

If there are signs of impairment, it is necessary to calculate the recoverable value. If there is no sign of impairment, it is not necessary to calculate the recoverable cost, except for intangible assets with an unlimited useful life.

Intangible assets with an unlimited service life are those for which it is difficult to establish the exact duration of the period during which the company expects to obtain economic benefits from these assets. Intangible assets with an unlimited service life are not depreciated, but are checked for impairment.

Solution, examples

The company quarterly identifies indicators of impairment of intangible assets for the presence or absence of external and internal signs.

A check is formed - a list of NMA and is sent responsible for use in order to confirm the presence or absence of impairment indicators at the reporting date.

Example check - Identification of indicators of impairment of intangible assets:

Prepared: Signature Date

Checked: Signature Date

Approved: Signature Date

In the event of an impairment indicators, the company conducts the NMA testing for impairment.

An example of an approach to conducting an impairment test and determining the recoverable value of NMA:

Fair cost less sales costs - this is the amount that can be obtained from the sale of an asset in the transaction between independent, knowledgeable, who want to make this transaction by the parties.
In the absence of a sales contract, the fair value is defined as the price of the active market - the price of purchasing a similar asset on the market, the price of the last transaction for the acquisition of a similar asset.
In the absence of a sales contract and an active market, a fair value is determined on the basis of the most reliable information available in the company . For example, an assessment of NMMA appraisers.
Costs for sale - these are additional costs that are directly related to the sale of an asset, with the exception of financial costs and income tax, as well as the costs already included in the obligations.

Value use - the amount of discounted future cash flows from the asset under consideration (units generating money).
The calculation of the value of the use of an asset (EMDS) involves the formation of tributaries and cash outflows from the use of an asset (EMDS), as well as their discount on the corresponding discount rate.

Discounting cash flows from the use of the asset is associated with the unequal value of money in time. Reducing the cost of cash flows in time suggests that the amount of money today's more than a similar amount of money after a certain time, because during this time the specified amount of money, being embedded, will bring their owner an additional income. Thus, discounting is the calculation of the current value of monetary sums related to future periods.

Option for calculating the value of the use of an asset (EMDS):

Discount rate - bet before tax deduction, which reflects the current market value Money and risks inherent in this asset (given EMDS). In particular, it may be market credit rates or the weighted average cost of the company's capital (WACC).

Discount index Used in the calculation of the value of the use of the asset (EMDS) is determined by the formula:

1 / (1+ discount rate) ^ n

where the degree n is the number of the period under consideration (year).

Flow of money - revenue from sales of products (works, services) produced using asset (EMDS). In this case, the revenue is defined as a product of sales in physical terms on the price of the implementation;
- receipts from the sale of assets in the late periods of its use;

Flow outflow Directly related to the tributaries - variable costs for production (works, services), costs for planned and preventive repair.

Forecast period - For which cash flows are determined. The period is equal five years. During this period, cash flows can be formed taking into account the raising growth rates.

The basis for building forecast cash flows are company budgets.

Loss of impairment - if the carrying amount of the asset is more than its recoverable cost, it is necessary to reduce the value of the asset before it is reimbursed and recognized in the amount (the balance price is the reimbursable value).

Based on the calculation of the recoverable value, the asset impairment loss is fully recognized.

Reflection of an impairment loss in accounting:

In the accounting of assets in Russian and international rules. The main goal of this standard IFRS is to eliminate the intensification of the book value of non-current (long-term) assets.

The book value of non-current assets is the historical cost adjusted to the amount of accounting depreciation, which is an estimated value and only approximately reflects the change in the cost of assets over time. Meanwhile, investors who are the main users of financial statements, are interested in non-abstract cost figures, but the economic benefits that assets can bring in the future. IAS 36 IAS 36 "Impairment of Assets" provides confidence that the value of economic benefits from assets reflected in the reporting will not be overestimated.

The text of IFRS standards in Russian is published not only on the official website of the Ministry of Finance (there is an article below), but also on many Internet resources. However, read the original text of the standards is quite tedious, because they are written by the professional language of documents. I will try in this article state the essence of the standard understandable. For professional judgments, in the process of preparing the real statements, it is necessary, of course, to refer to the original text as the standard translated into Russian and to all additions and explanations, which are usually not translated into Russian.

DIPIFR diploma applicants should pay attention to IFRS 36 in the December 2015 session and in the future. This standard has not yet been tested by the existing examiner by Paul Robins on the DIPPR exam. But the same story until June 2015 was with the standard of IFRS 41 "Agriculture", and in June 2015 the question under IFRS 41 appeared at once on 12 points.

Economic meaning of inspection of impairment assets

According to IFRS 36 "Impairment of assets" asset can not be reflected in the statement of financial position in larger sumthan its recoverable cost. If the carrying amount of the asset cannot be completely reimbursed through its continued use or through sale, then an impairment of such an asset (loss in OKU) should be recognized.

Indicators of assets impairment

IAS 36 IFRS Standard prescribes to carry out an assets impairment test (just below). This test is a rather laborious procedure, therefore, there is no requirement to conduct it at the end of each reporting period. Asset impairment test should be carried out in the presence of impairment indicators. At each reporting date, the company must determine if there are indicators (IFRS 36, p.12). Impairment indicators are divided into external and internal depending on where the source of information is

External sources of information

• during the period, the market value of the asset decreased significantly more than expected over time or under normal use.
• significant changes .. in technical, market, economic or legal conditions in which the company operates, or in the market for which the asset is intended.
• market interest rates increased during the period (therefore there was a discount rate used in the calculation of value of use)
• the carrying amount of the net assets of the enterprise exceeds its market capitalization (in other words, the company's cost in financial statements has become more than the cost of the company on the stock exchange)

Internal sources of information

• signs of moral obsolescence or physical damage asset.
• significant changes .. occurred during the period or will occur in the near future: a simple asset, plans to terminate or restructure the activity to which the asset refers, plans for the disposal of an asset to the previously planned date, as well as the reclassification of the service life of the asset with an uncertain one.
• from the internal reporting it is that the economic efficiency of the asset is worse or worse than expected.

Regardless of whether there are or any signs of impairment, it is necessary to check for impairment annually:

1. intangible asset with an indefinite service life,
2. an intangible asset that is not available for use (R & D),
3. acquired as a result of the union of business Goodwill.

MSFO Asset Impairment Test

The impairment test means the definition of the recoverable value of the asset and comparing it with the cost.

The reimbursable value of the asset is the largest of:

• Fair value asset minus sales costs
• The value of the use of the asset, which represents the discounted value of future cash flows that will be obtained from the use of the asset.

a) if the book value\u003e compensated, then the asset depreciated. The amount of exceeding is an impairment loss, which refers either on the ODA, or to the reassessment reserve.

b) if the book value< возмещаемой, то обесценения нет, и, следовательно, корректировок в отчетности тоже нет.

If the concept of fair value is more or less clear, then the value of use is a new term that appears in IFRS with the introduction of an assets' impairment standard.

Value to use asset

What is a reimbursement value? If you own an asset, then you can either use it or sell it. The decision to do with the asset depends on how much benefits (cash) you will receive in one way or another. In most cases, the value of the use of an asset exceeds the fair value of its sale, so it is more profitable to sell an asset, and consume economic benefits generated by it. But if you do not know how to use an asset with a profit, and the price of its sale is more attractive for you, then it will be better to sell it to someone who will be able to extract more benefit from the asset.

The value of use is the present value of future cash flows from the asset.

To determine the value of the use of an asset, you need to predict all the cash flows that you get from the asset in the future and to today's moment. The phrase "All future streams" means that it is necessary to take into account both cash tributaries and cash outflows associated both using the asset and with its retirement in the future. For example, if you buy a second apartment for rent (at the same time you have an apartment for living), then the value of using this second apartment will be equal to the present value of the future rent per minus utility costs throughout the term of use plus the present value Pure cash flow from selling this apartment in the future.

Evaluation of the recoverable cost - need to read the standard

In IFRS 36, paying great attention to the calculation of both the recoverable cost in general and the value of use in particular, since the recoverable cost is the cornerstone of this standard.

To determine the fair value of the asset minus costs for sale should be addressed to the standard. Please note that items 25-27 of the IFRS 36 standards were removed with the release of IFRS 13, but in Russian translation, which was published on the website of the Ministry of Finance, they still remained, as the translation was made before making changes to IFRS in terms of fair value.

The determination of the value of the asset is occupied by a substantial part of IFRS 36. How to estimate future cash flows from the asset painted in 20 paragraphs of the standard and another 4 paragraph refer to the selection of the discount rate. In addition, there is an application A, which explains how to discount expected cash flows to calculate the value of use. This application is translated into Russian. Unfortunately, on this translation into Russian ends. The original of the IFRS 36 standard contains another application C, the bases for conclusions and illustrative examples, and all three of these undeserved parts are not inferior to the part of the standard that has been translated into Russian.

If you bring to evaluate the recoverable value of the asset to conduct an impairment test of IFRS, then you will have to carefully read everything that is written about this in IFRS 36. In this case, you can evaluate how much it is a time-consuming occupation, and why the test for impairment is not carried out every The reporting period, and only in the presence of signs of depreciation asset.

The translation of IFRS 36 is posted on the website of the Ministry of Finance. It can be found on the link:

http://www.minfin.ru/ru/perfomance/accounting/mej_standart_fo/docs/

An illustrative task of calculating the impairment of the asset

Alpha has conducted an inspection of its assets for impairment. There is reason to believe that the cost of some production equipment is irreversibly decreased. Products manufactured using this equipment were sold below the cost. The balance sheet value of the equipment at the end of the reporting period is $ 290,000, and the fair value less costs for sale is estimated at $ 120,000. The expected net cash receipts from the use of this equipment over the next 3 years amount to $ 100,000 per year. For calculations of the discounted cost, you should use the interest rate of 10%.

Is there any impairment of equipment in this case? How to reflect it In the financial statements of alfa?

Decision

1) Since there are signs of equipment impairment (selling products below cost \u003d the economic efficiency of the asset is unsatisfactory), it is necessary to conduct an impairment test.

2) Impairment test - comparing the book value of production equipment with its recoverable amount.

2) Reimborn amount is the largest of two quantities: the fair value of the asset minus the cost of selling and its value of use.

4) Fair cost less costs for sale is 120,000.

5) The value of use is equal to the discounted value of future cash flows from the asset - 248.685 dollars. Factor (coefficient) of discounting for 1.2 and 3rd year can be taken from, on the examination of the dipfa, these figures will be given.

6) 248.685\u003e 120,000. Thus, the recoverable amount is 248.685 dollars.

7) Therefore, Alpha should write off the value of the asset to its value of use and recognize the loss in the amount of 41.315 (\u003d 290,000 - 248.685) in Ap.

Dt Loss from Impairment CT OS (Equipment) - 41,315

• OFP: Fixed assets - 248,685
• OSD: Impairment Loss - 41,315

IFRS 36 is one of the most voluminous standards of IFRS and its consideration is impossible within the same article - it would be too long. In this article, I did not concern such issues: where impairment losses are reflected, what is the EMDS, the impairment of goodwill, restore impairment loss and disclosure of information. I plan to do this in the following publications.

In the process of economic activities of sports institutions, some objects of non-financial assets (fixed assets, unprovered assets) may have signs of impairment. It is necessary to identify such signs in order to make a managerial decision to further use the specified property or its disposal and reflect data facts in accounting and reporting. For these purposes, the FSBU "Impairment of Assets" is applied. Read more about this - in consultation.

The impairment of assets takes place in a situation where the cost of property in the reporting period (last reporting periods) decreased faster than it was assumed during its use in accordance with the targeted appointment. For example, property is physically and morally outdated or suffered in disaster, a different emergency.

FSBU "Impairment of Assets" prescribes public sector institutions:

reflect in accounting an asset impairment loss if it exceeds the fair value (the amount that can be obtained through its sale or recovery);

restore an asset impairment loss in case of identifying signs indicating that the loss recognized in previous periods no longer exists or decreased;

disclose this information in the accounting (financial) reporting.

Note: The IBBU "Impairment Assets" is not applied to stocks and financial assets, unless otherwise provided by this standard.

According to paragraph 6 of the FSBU "Impairment of Assets", identifying signs of impairment of an asset is carried out in the framework of the inventory of assets and obligations to compile an annual accounting (financial) reporting by analyzing any signs that indicate a possible depreciation of the asset (hereinafter referred to as an impairment test).

By virtue of the federal standard, the testing test of assets can be divided into several stages:

identifying signs of impairment of an asset (reduction of previously recognized impairment);

determination of the fair value of the asset;

determining the amount of impairment loss (reducing the previously recognized loss);

reflection of test results in accounting and reporting.

Procedure for conducting an impairment test and documentary

Currently, the recommendations for conducting assets are not included in the regulatory legal acts regulating in public sector institutions. At the same time, in the letter of the Ministry of Finance of the Russian Federation of September 19, 2018 No. 02-07-05 / 67175, information was brought in addition to the application for the use of the FSBU "Impairment of Assets" will be sent additionally within the framework of general recommendations for the preparation for annual accounting (financial) reporting.

As mentioned above, the asset impairment test is carried out when conducting an annual property inventory, that is, until December 31 of the current year. We recommend to pass the main stages of the test for the impairment of assets (identifying signs, definition of fair value and loss) during the inventory period, without waiting for the explanations of the Ministry of Finance, since this process is time consuming and can take a lot of time. Then (on the basis of the recommendations of the financial department), the results of the test for impairment should be reflected.

Identification of signs of depreciation asset

When conducting an impairment test, assets are shared as follows.

Assets generating cash flows (hereinafter - the assets of the GDP), - assets, the purpose of which is to obtain economic benefits (income) in the form of money or their equivalents (hereinafter referred to as a positive cash flow, cash flows), regardless of the fact of obtaining such income.

Assets that do not generate cash flows (hereinafter referred to as the assets of NGDP), - assets that are expected to receive beneficial potential and the purpose of which is not to receive cash flows.

Group of assets - A combination of assets similarities in essence or functions performed in the activities of the accounting entity, information about which is disclosed in the accounting (financial) reporting of one article (generalized).

Cash flow unit (The GDP unit) is the smallest identifiable group of assets suitable for positive cash flows. A group of assets is identified as a unit of GDP, if from the total cash flow obtained in the framework of the accounting entity activities, it is possible to separate cash flow arising from the use of this assets group.

The GDP unit unites both assets, from the independent use of which the beneficial potential is expected and the purpose of which is not to obtain cash flows and assets, with the independent use of which it is possible to obtain a positive cash flow (hereinafter referred to as an asset in the EDP generating cash flows).

A group of assets used to perform work, including internal consumption by the institution, can be classified as a unit of GDP - for example, a football training platform, which includes changing rooms and other rooms for athletes and service personnel, playing field, drainage system , a system of subsoil heating, an irrigation system, strengthening elements, gates, benches for teams, seats for viewers, lighting equipment, fence, etc. According to this classification, the identification of signs of impairment is carried out:

a) individually for each asset NGDP;

b) individually for each asset GDP;

c) for each individual unit of GDP.

Signs of impairment asset can be external and internal. For example, internal features include moral obsolescence and (or) physical damage to the asset that reduce its useful potential. TO external signs - the absence of either a significant reduction in the need for work, the services provided by the asset.

In case of detection of any sign of impairment of the asset, named in paragraph 7, 8 of the FSBU "Impairment of Assets" (either in the local act of the institution), when carrying out an inventory, the authorized commission decides on the need to determine the fair value of the asset, taking into account the materiality of the influence of the identified signs of impairment .

Note: If, according to the results of the analysis of identified signs of impairment of an asset in the institution, a decision is made to account for an asset on off-balance accounts, in the future the test for impairment of such an asset (definition of fair value) is not carried out (paragraph 14 of the FSBU "Impairment of Assets").

The form of a protocol of the Commission to identify indication of impairment may contain:

1) the name of the protocol (for example, a protocol to identify the signs of assets' impairment), the number, date of compilation;

2) preamble (the Commission approved by order from ______ No. ______, as part of ___________________ in the inventory of assets in order to ensure the accuracy of these annual accounting (financial) reporting, it has established signs of impairment of an asset as of ________________ (date, inventory inventory number);

4) features indicating an impairment of an asset (with justification);

5) Commission's decision.

Determination of fair value

The fair value of the asset is determined by the Commission, which is entrusted with such powers (if necessary, with the involvement of third-party specialists), using the method of market prices or the method of amortized substitution cost (paragraph 11 of the FSBU "Austal Impairment"). The procedure for applying these methods is provided in paragraph 54 of the FSBU "Conceptual Fundamentals".

The institution uses that method that allows the most reliably to assess the fair value of the asset. The selected method for determining the fair value of the asset is set in the commission of the Commission on the definition of the fair value of the asset.

1) the name of the act (for example, the act of defining fair value), the number, date of compilation;

2) Preamble (the Commission approved by order from ______ ______, in the composition of ___________________ in relation to the object, which identified signs of impairment (protocol from ___ № ______), determined its fair value on the basis of the following data ...);

3) a brief description of the object (object name, inventory number, balance and residual value, asset of the State Code / Active NGDP / Unit of GDP);

4) Method for determining fair value. Depending on the selected method, when determining the fair value of the object, the Commission uses:

prices on prices for similar material values \u200b\u200bobtained in writing from manufacturers' organizations;

price level information available from state statistical authorities as well as in funds mass media and special literature;

expert conclusions (including experts attracted to work in the commission for the admission and disposal of assets) on the value of individual (similar) objects of non-financial assets);

5) data on the current (medium) market price (with the attachment of supporting documents to the act);

6) Commission's decision.

Note: At the same time, when deciding to determine the fair value, the Commission is assessed by the need for adjustment in relation to the asset of the remaining time of its useful use (paragraph 13 of the FSBU "Impairment of Assets").

Recognition of an asset impairment loss

By virtue of paragraph 15 of the FSBU "Impairment of Assets" Decision on recognizing an impairment loss of an asset, which is a state (municipal) property, is made in a manner similar to the decision to write down such property established in accordance with the legislation of the Russian Federation.

Note: With regard to immovable and especially valuable movable property acquired by budget or autonomous institutions at the expense of the founder's funds, the decision of the Commission on recognition of an impairment loss is subject to coordination with the owner of the property. In a state institution, such decisions must be coordinated with the owner regarding the entire property.

The procedure for recognizing an impairment loss of an asset in accounting is as follows:

1. An asset impairment loss is recognized if the residual value of the asset on the annual reporting date exceeds its fair value minus the costs of the disposal of such an asset, calculated according to the decision-made decision to determine the fair value of the asset.

2. The residual value of the asset on the annual reporting date decreases to its fair value, determined according to the Commission's decision, minus the cost of the disposal of such an asset, but not more than the residual value of the asset for the annual reporting date. When calculating, the predetermined features of the recognition of damages from impairment of an asset of the GDP and the NGDP asset, the GDP units (are shown below).

3. The loss is reflected in accounting at the same time as part of the costs of the reporting period. In this case, the sum of the previously accrued depreciation of the asset is not corrected.

Features of recognizing losses from impairment asset GDP and an asset NGDP They are as follows (paragraph 16 of the FSBU "Asset Impairment").

If the calculated amount of a loss of impairment of an asset is more of its residual value for the annual reporting date, then the residual value of such an asset is reduced to zero (with the recognition of the corresponding amount in the costs of the reporting period). The obligation to such exceeding is recognized in accounting in cases established by regulatory legal acts regulating management. accounting and drawing up accounting (financial) reporting.

After recognizing an impairment loss of an asset, the rate of depreciation on the asset is adjusted in connection with the adopted accounting entity by the decision on the adjustment on the asset of the remaining useful life in such a way as to evenly distribute the revised residual value of the asset during the remaining time of its useful use, taking into account its adjustment .

Features of recognition of an impairment loss unit of GDP They are as follows (paragraph 17 of the FSBU "Austal Impairment").

The impairment loss of the unit of the State GDP is distributed in proportion to the residual value of assets included in the unit GDP. At the same time, the residual value of the asset, which is part of the GDP unit, decreases to its fair value less than the cost of disposal, if it is defined, otherwise - to zero.

For an asset, which is part of the GDP unit, an asset impairment loss is recognized, in case its residual value for the annual reporting date is more than the fair value of the GDP unit minus the cost of disposal or residual value, taking into account the results of an earlier distribution of an asset impairment.

If the cost of a unit of GDP has not decreased, then for assets in the EMD, which generates cash flows, an impairment loss is not recognized. This rule is valid, even if the fair value minus the costs of the departure of the asset in the EMDP generating cash flows, less residual value for the annual reporting date of such an asset.

Conducting an impairment test of NGDP assets that are part of the GDP unit is carried out before the test for impairment of the entire GDP unit. After the test for impairment of NGDP assets, which are part of the GDP unit, their residual value is included in the residual value of the GDP unit, in respect of which the impairment test is carried out.

Loss of impairment unit of the State Unitary Enterprise is recognized by distributing the amount of a loss from impairment of the GDP unit, calculated on the results of the test for impairment of the GDP unit, in proportion to the residual value of all the GDP state-of-GDP assets. With respect to the assets of the NGDP, which are part of the GDP unit, recognition of an impairment loss of an IPU unit is not made.

Documentary registration of the calculation of an impairment loss.

The decision of the commission to which the authority is entrusted to define fair value may be issued as an act. The form of such an act may contain:

1) the name of the document (for example, the calculation of an asset impairment loss), the number, date of compilation;

2) Preamble (the Commission approved by the order from ______ No. ______, as part of ___________________ in relation to the object, which identified signs of impairment (protocol from ___ № ______), the loss of impairment was made on the basis of the following data ...);

3) a brief description of the object (object name, inventory number, balance and residual value, asset of the State Code / Active NGDP / Unit of GDP);

4) settlement data and calculation (listed in the table below);

5) the Commission's decision;

6) a mark on coordination with the owner of the property (if necessary).

* Data on the cost of disposal is documented (attached to the calculation). If necessary, explanations (tables) are given, taking into account the features of recognition of the loss provided for in paragraph 16, 17 of the FSBU "Impairment of Assets" against NGDP assets, GDP assets, GPD units.

Reflection loss in accounting

The accrual of an impairment loss of the object of fixed assets is reflected in accounting, separately from the value of the object of fixed assets by analogy with the amount of depreciation by this OS object.

At the same time, an asset impairment loss is recognized as the composition of the costs of the reporting period at a time. The amount of the previously accrued depreciation of the asset is not adjusted.

For reflection in accounting, amounts of accumulated losses are provided account 0 114 00 000 "Impairment of non-financial assets" (in the context of analytical accounts).

In the table, we give correspondence for accounts on accrualing and debiting assets impairment losses, as well as in the case of the transfer of property, for which such a loss was previously charged.

Example.

The budgetary institution of sports has sports equipment on the balance sheet, the initial value of which is 2,200,000 rubles, accrued depreciation - 800,000 rubles. This equipment was acquired at the expense of income generating activities for the provision of paid services. When carrying out inventory, the commission identified signs of its impairment, namely a decrease in cost due to certain elements of the structure as a result of aggressive impact ambient (The consequences of the hurricane). The Commission identified the average market value of such equipment, taking into account the current state of 1,000,000 rubles. The implementation of the equipment is not expected.

The commission determined that this sports equipment belongs to the assets of the GDP.

The fair value of the equipment is 1,000,000 rubles, since the cost of sale is not assumed.

Based on the calculations, the residual cost of the equipment exceeds its fair value ((2,200,000 - 800,000) rubles.\u003e 1 000 000 rub.). Consequently, the institution recognizes losses from its impairment in the amount of 400,000 rubles. ((2,200,000 - 800 000) - 1,000,000).

Accounting reflects the following entry:

Reflection of impairment losses in financial statements

In the accounting (financial) reporting, as a result of recognition (restoration) of impairment damages, the asset is disclosed as follows for each group of assets:

a) the amount of impairment losses of an asset recognized during the period in the cost of expenses and the reporting items in which these depreciation losses are included;

b) the amount of restored losses from the impairment of an asset recognized during the period as part of the income, and the reporting articles on which these losses on the depreciation of the asset were restored.

According to the amount of an impairment loss of an asset recognized or restored during the reporting period, the institution reflects in the reporting (paragraph 32 of the FSBU "Asset Impairment"):

events and circumstances that led to the recognition or restoration of an asset impairment loss;

the amount of a recognized or restored loss against an asset impairment;

the group to which the asset belongs is to provide such information provided for by regulatory legal acts regulating accounting and drawing up accounting (financial) reporting;

methods used to determine fair value when conducting an impairment test.

This information is transmitted together with other data disclosed for each assets group in accordance with regulatory legal acts.

In conclusion, the summary of the foregoing. The identification of signs of impairment of an asset is carried out in the framework of the inventory of assets and liabilities before drawing up annual accounting (financial) reporting by conducting an impairment test.

For these purposes in the institution it is advisable to approve (by a separate document or as part of accounting policies):

commissions, which are entrusted with the authority to identify signs of impairment of assets, the definition of fair value, the calculation of an impairment loss;

the procedure for conducting an impairment test in the implementation of annual inventory and in other cases;

forms of documents, on the basis of which the results of the test for impairment are issued.

Recommendations for the use of the FSBU "Impairment of Assets" will be sent to the Finance Office in addition to the general recommendations for preparing for the annual accounting (financial) reporting (letter of the Ministry of Finance of the Russian Federation of September 19, 2018 No. 02-07-05 / 67175).