MFRS 136 Other impairment issues

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MFRS 136 ‘Impairment of Assets’ is a Standard that has been an issue for many years. However, some areas of the Standard are complex and therefore can be challenging to apply in practice, and therefore many entities struggle when determining whether or not their assets should be impaired.

The articles in our ‘Insights into MFRS 136’ series have been written to assist preparers of financial statements and those charged with the governance of reporting entities understand the requirements set out in MFRS 136, and revisit some areas where confusion has been seen in practice.

This article considers some regularly encountered application issues when applying MFRS 136, which are: 

  • the ‘deferred tax and goodwill problem’
  • non-controlling interests
  • equity accounting, and
  • the interaction between MFRS 136 and other MFRS.

How we can help

We hope you find the information in this article helpful in giving you some insight into MFRS 136. If you would like to discuss any of the points raised, please do not hesitate to contact us.