Individually Significant Receivables CRICOS Provider Code: 00115M. This is the current version of this document. (4) An asset should not be carried in the balance sheet at a value greater than its recoverable amount. (24) For assets other than goodwill, the impairment loss is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. Impairment disclosures for intangibles with indefinite life and those not yet available for use require more extensive details to be captured as part of the notes in the financial statements. To illustrate, Ogden Bank (the creditor) recognized an impairment loss of $12,434 by debiting Bad Debt Expense for the expected loss. (32) The collectability of trade receivables is reviewed on an ongoing basis. The impairment adjustment is meant to show the uncollectible parts of the receivable. PROV BAD DEBT : impairment loss 3500-WWSR-546829 . Feedback The reversal of an impairment loss recognises an increase in the estimated service potential of an asset, either from use or sale since the last impairment test. (33) The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows. Category of debtor Recoverable amount is defined as the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use. Impairment losses recognised in the income statement on equity instruments shall not be reversed through the income statement, but are recognised in equity in the available-for-sale financial assets revaluation reserve. Impairment loss . Reversal of an Impairment Loss. An indicator of possible impairment is the ageing schedule of the debtor balances. Part B - Measuring Recoverable Amount This is the current version of this document. Methodology for the impairment of receivables 6 assets arising from employee benefits;  Part H - Impairment of Receivables – Sundry Debtors Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or other financial reorganisation and default or delinquent in making payments are considered indicators that the receivable is impaired. Reversal of an im­pair­ment loss Same approach as for the iden­ti­fi­ca­tion of impaired assets: assess at each balance sheet date whether there is an in­di­ca­tion that an im­pair­ment loss may have decreased. The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense. If the University recovers amounts that have been previously written off as uncollectable, the recovered amount is recognised in the income statement. There is a prolonged decline in the fair value, i.e. IAS 39 requires all financial assets, with the exception of those measured at FVTPL, to be assessed for impairment. Reversal of impairment is a situation where a company can declare an asset to be valuable where it has previously been declared a liability. (1) This Procedure is applied in accounting for the impairment of all assets (including current assets) other than: (2) Refer to the Accounting (Financial) Policy. An indicator of possible impairment is the ageing schedule of the debtor balances. Loans and Receivables Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy or other financial reorganisation and default or delinquent in making payments are considered indicators that the receivable is impaired. Impairment loss/Reversal of 3500-WWSR-547829 . (16) Investments in equity instruments are deemed ‘impaired’, and charged to the Income Statement, when either of the following occurs: In general, asset impairment indicates that an asset costs more to a business than it is worth. Reduction in allowance for impairment of TR means there is a reversal of impairment loss on TR of $58. 40% Is there any evidence of obsolescence or physical damage to the asset? deferred tax assets;  (21) Assets are tested for impairment to ensure that they are not carried in the balance sheet at a value more than their recoverable amount. Sponsors (exclude internal sponsors) Age group (in days): Available-for-Sale Financial Assets The loss is first set off against any revaluation surplus relating to the same class of assets in reserves and the balance of the loss is then treated as an expense in the income statement. If there is no binding sale agreement or active market for an asset, fair value less costs to sell is based on the best information available to reflect the amount that the University could obtain, at the reporting date, from the disposal of the asset in an arm's length transaction between knowledgeable, willing parties, after deducting the costs of disposal. (6) Recoverable amount is measured as the higher of an asset’s fair value less costs to sell and its value in use. Government debtors FOR THE IMPAIRMENT OF RECEIVABLES POLICY ... 3500-WWSR-550829 Prov Bad Debt Impairment loss / Reversal of impairment 3500-WWSR-547829 Prov Bad Debt loss 3500-WWSR-546829 Prov Bad Debt 3500-WMRR-422829 Prov Bad Debt 3500-WMRR-420829 Prov Bad Debt 3500-TWWD-567829 Prov Bad Debt 3500-TWWD-566829 Prov Bad Debt 3500-TWWD-560829 Prov Bad … The increased carrying amount of an asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. It is pertinent to note here that some External Auditors have more information on their clients’ customers than the information provided by the clients. The impairment is recognised in the income statement. 4. (9) If the recoverable amount of an asset is less than its carrying amount, the University should reduce the carrying amount to the recoverable amount. Join us as we go through a note issued at par that becomes an impaired note!   (33) The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows.   Have any significant changes occurred in the period, including the asset becoming idle, plans to discontinue or restructure the operation to which the asset belongs, which will materially reduce the useful life of the asset? Computer Equipment, Other Plant and Equipment and Motor Vehicles  (37) For collective assessment, the University has used its experienced judgement in determining the level of provision for each of the categories based on the following key factors: (38) Based on the age and category of the debtors, the University currently recognises an impairment provision, at the following rates, on the outstanding debtor balances as at the reporting date: (39) The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows. © Copyright 2017 La Trobe University. Export to Excel. (13) For assets other than goodwill, the reversal of an impairment loss should be recognised if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment test was carried out. Loss events can be considered to be events that crystalize to form objective evidence of impairment; and examples may include significant financial difficulty of the parties involved; reports of accident on a customer’s major factory, or it becoming probable that the customer will enter bankruptcy. (36) The collectability of trade receivables is reviewed on an ongoing basis. Number of days of debt outstanding  Reversal of impairment loss on receivables Note 25 30 275 Write down of from DA 121 at Malaysia Theological Seminary 4.2 As long as a financial instrument is on revenue account, any unrealised gain or loss recognised in the P&L will be taxable or allowable as a deduction. (30) Where there is insufficient balance in the revaluation reserve to cover the impairment losses of any class of PPE, the resulting loss is charged to ‘Central’ through the relevant impairment expense accounts. (23) If the recoverable amount of an asset is determined to be lesser than its carrying amount, an impairment loss is recognised in the income statement (for assets carried on a depreciated historical cost basis) or treated as a revaluation decrease (for assets that are carried at revalued amount). eur-lex.europa.eu. 0% (3) Refer to the Accounting (Financial) Policy. The reduction is recognised as an impairment loss. Testing threshold, if any, is detailed in the University’s procedures for each class of asset. (12) An assessment is required to be done at each reporting date to identify whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill may no longer exist or may have decreased. 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