IAS 36 training

Prerequisites

No prior knowledge is required

Objectives

◗ Implement the impairment test under IFRS.

◗ Make the connection to the test based on French standards.

◗ Calculate the impairment of a CGU (Cash-Generating Unit), with or without goodwill.

◗ Identify implementation challenges.

Training program

◗ The Challenges of Impairment Testing and the Definition of Impairment Under IAS 36

– Impairment Tests and Financial Reporting
– Concept of Recoverable Amount: Value in Use and Fair Value Less Costs to Sell
– Comparison with French Regulations
✔ UNDERSTANDING | Illustration: History of Impairments in the CAC 40 and Press Review

◗ The frequency and various levels of application of the impairment test

– Identifying indicators of impairment and frequency of testing
– Scope: individual assets and groups of assets
– CGUs (Cash-Generating Units): definition, identification, and challenges; allocation of goodwill
– Application of IAS 36 to equity-method investments
✔ UNDERSTAND | Example: ESMA decisions
✔ UNDERSTAND | Review of group financial statements
✔ EVALUATE | Quiz: Which assets to test and when?
✔ APPLY | Case studies: Indicators of impairment, determining CGU

◗ The Impairment Test Methodology

– Determining the recoverable amount
– Key challenges and points to watch: Which cash flows? Which discount rate? What time horizon?
– The importance of sensitivity analyses
– Accounting rules for recognizing an impairment loss
✔ UNDERSTAND | Examples: Group disclosures and ESMA decisions
✔ APPLY | Practical exercise: Estimating future cash flows
✔ APPLY | Comprehensive practical exercise: Goodwill impairment

◗ Handling special cases

– Impairment Test for Partial Goodwill
– Impairment and Assets Held for Sale: Interaction with IFRS 5
– Revalued Fixed Assets
– Post-Balance Sheet Date Impairment and Interaction with IAS 10
– Impairment of right-of-use assets (IFRS 16)
✔ UNDERSTANDING | Review of ESMA decisions
✔ UNDERSTANDING | Practical examples with figures

◗ Information to be provided in the appendix and proposed revisions to the standard

– Information to be disclosed in the notes under IFRS and French accounting standards
– Proposed amendments to the standard: key points under consideration

Why choose this course?

The impairment test is a “true-false” specialty of IFRS. The principle is simple, but the details are often misunderstood, particularly the role of fair value. This training course enables participants to apply the provisions of both IFRS and French accounting standards effectively and consistently.

Teaching and assessment methods

Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.

Teaching Methods: A variety of methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.

Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.

During the training: a mix of theoretical concepts and examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.

Monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.

Price

1 295 € EXCL. TAX

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IAS 36 training

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Generalist trainings

IAS 36 training