Topic 06 · IAS 36
Impairment of assets
When a non-financial asset or goodwill is written down to its recoverable amount, at what unit, on discounted or undiscounted cash flows, and whether the write-down can ever be reversed.
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- 2024-03-27FRS 102The Periodic Review rewrote revenue (Section 23) and leases (Section 20) but made only consequential and editorial changes to Section 27 Impairment of Assets; the indicator-based test, recoverable amount definition, CGU mechanics and reversal rules are unchanged for periods beginning on or after 1 January 2026. Effective 2026-01-01.
- 2024-03-14IFRSThe IASB proposed targeted changes to the impairment test of cash-generating units containing goodwill, including relief from the value-in-use restrictions on uncommitted restructurings and enhancements, use of post-tax inputs and discount rates, and clarified guidance on the level at which goodwill is allocated, alongside new IFRS 3 disclosures on the performance of acquisitions. As of the IASB's July 2026 update the Board is still redeliberating; no final amendments or effective date have been issued.
- 2021-03-30US GAAPLets private companies and not-for-profit entities evaluate goodwill impairment triggering events only as of the reporting date rather than throughout the period, extending the Private Company Council's goodwill amortisation alternative. Effective for fiscal years beginning after 15 December 2019 with early adoption permitted. Effective 2020-01-01.
- 2017-01-26US GAAPASU 2017-04 Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill ImpairmentEliminated Step 2 of the goodwill impairment test (the hypothetical purchase price allocation); the loss is now the excess of a reporting unit's carrying amount over its fair value, capped at the goodwill allocated to the unit. Effective for SEC filers other than smaller reporting companies for fiscal years beginning after 15 December 2019 and, after the ASU 2019-10 deferral, for all other entities after 15 December 2022. Effective 2020-01-01.