Financial accounting and reporting requires an analysis of impairment review of Tangible assets as and when circumstances indicates that there is a diminution in the valuation of tangible asset.
IAS 36/Indian GAAP – AS 28: Impairment of Assets requires the testing of long-lived tangible fixed assets valuation as and when required with other assets tested where there is an indication that the asset may be impaired. An individual tangible asset may be tested for impairment at a cash generating unit (“CGU”) level where independent cash flows cannot be attributed to a single asset. The Carrying value of the tangible asset/CGU is compared to its recoverable amount – Fair Value less Cost of Disposal to determine whether the asset or CGU is impaired or not.
RBSA has the required skills and expertise to perform unbiased and fair impairment analysis that will bring clarity to senior management, auditors, valuation professionals, and regulators by explaining the valuation aspects.