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This article, Scope and structure of MFRS 136, looks at the scope of the impairment review (i.e. the types of assets that are included) and how it is structured (i.e. the level at which assets are reviewed).

MFRS 136 ‘Impairment of Assets’ provides the core principles when assessing if an asset should be impaired. However, due to the complex nature of the guidance, the requirements of MFRS 136 can be challenging to apply in practice.

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 publication covers the following two steps of any impairment review:
• Step 1: Identify assets within the scope of MFRS 136
• Step 2: Determine the structure of the impairment review.

The remaining steps will be considered in subsequent articles.

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.