Depreciation Test of Fixed Assets – Necessity, Indices of Value Loss, Certainty and Frequency of Assessment Evaluation
With the promulgation of IAS 36 "Depreciation of Assets" to ensure a consistent approach of reversible loss of value, removing the specific nationals practices and such the differences what appear as a result of the different treatments. In the chain of procedures for determining the depreciation of an asset/cash generating unit is required first the crossing phase of identification to an possible impaired assets, being necessary for the strict professional reasoning to each business. Applying the test impairment is not random and not to all assets of an enterprise. In general, the standard requires for companies to make the impairment tests when there are signs that an asset may be impaired (but annually for intangible assets with an indefinite useful life and commercial fund). The opportunity given by IAS 36 " Depreciation of Assets" to choose in determining of recoverable amount, between two values is not accidental. It is considered that the company can recover the value of its assets through use or market capitalization. However measurement of the two values is a complex process, very expensive for many businesses, own estimates based on Management Company with a strong subjective load, which is reflected on the certainty and reliability of obtained data.
Volume (Year): (2010)
Issue (Month): 15 ()
|Contact details of provider:|| Postal: |
Web page: http://fsec.ub.ro/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bac:fsecub:10-15-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bogdan Nichifor)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.