MFRS 136 - Value in use: estimating future cash inflows and outflows

insight featured image
MFRS 136 ‘Impairment of Assets’ prescribes the accounting for impairment reviews. There are some detailed requirements of MFRS 136 that are complex and challenging for the preparers of financial statements to apply.

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.

We will cover:

This article is the second in a three-part series on Step 4 of the impairment review on estimating the recoverable amount and discusses estimating future cash inflows and outflows in value in use (VIU) calculations.

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.