Impairment Testing (IAS 36 & IFRS 9)
Safeguarding Asset Values with Rigorous Impairment Assessments
Proper impairment testing is essential for accurate financial reporting and regulatory compliance. ECT Business Consulting conducts thorough, standards-compliant impairment reviews for a wide range of assets.
Scope of Services:
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Identification of impairment indicators for tangible and intangible assets, goodwill, and financial instruments
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Calculation of recoverable amounts using Value in Use and Fair Value Less Costs of Disposal methodologies
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Preparation of impairment testing models and supporting documentation
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Sensitivity and scenario analyses
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Audit support and preparation of disclosures for financial statements
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Key Deliverables:
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Comprehensive impairment testing report
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Detailed calculation models and supporting schedules
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Audit-ready documentation
Client Benefits:
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Confidence in asset valuations and financial statement integrity
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Reduced risk of audit findings or regulatory issues
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Clear, defensible analysis for management and stakeholders
Financial Statements Line Items (FSLI) Impacted:
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Impairment of Property, Plant & Equipment (Statement of Financial Position, Profit & Loss Statement)
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Impairment of Intangible Assets and Goodwill (Balance Sheet, Profit & Loss Statement, OCI)
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Impairment of Financial Assets (Statement of Financial Position, Profit & Loss Statement)
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Notes: Impairment Testing Assumptions & Disclosures (Notes to the Financial Statements)
Why ECT?
Our multidisciplinary team ensures your impairment assessments are robust, transparent, and compliant with all relevant standards.
