- The module is useful when:
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You have to determine in a short time if there are any impairment indicators to ensure whether a detailed impairment tests are required
You do not know how to perform an impairment test and what information you need to do it
You wish to determine a reliable amount of fixed assets allowance or intangible assets impairment charge
You are in charge of accounting of fixed assets looking for a tool enabling to perform multiple impairment tests of tangible assets in a short time
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Service description24iValue imitates the process of thinking and the actions a conventional expert implements to perform a test for the impairment of fixed assets.
The system will guide you step by step through the process of impairment testing, so that even if you know very little about this difficult issue you will be able to easily analyze the impairment indicators and calculate the write-downs of fixed assets. This can be achieved in accordance with the applicable accounting standards (IAS 36).
With 24iValue, you will easily perform impairment testing of non-current assets on your own and save a lot of time and hard work.
This module will be extremely helpful when you need to quickly check whether there is any indication of impairment of fixed assets or have to calculate the impairment charge for non-current assets, especially if you do not know how to determine the appropriate discount rate and free cash flows required to test for impairment.
Do you know that ... ?
Often an assumption is made that it is impossible for fixed assets to be impaired and therefore no relevant analysis of the impairment indicators is performed, despite such analysis shall be performed at least once a year.
If at least one internal or external impairment indicator exists, a detailed impairment test is required to calculate how much a fixed asset value should be decreased, if any.
Testing of impairment of fixed assets and other non-current assets are one of the most complicated tasks faced by accountants or auditors. The process requires advanced knowledge. We have to know how to calculate free cash flow forecasts, determine discount rates, market valuation. Perhaps this is the main reason why an assumption is often made that no impairment of assets has occurred and we do no nothing to confirm that we even fail to perform a relevant analysis of the impairment indicators; however, that may often result in material errors in the valuation of non-current assets.
Without support from specialists with advanced knowledge, correct performance of an entire impairment test seems unfeasible and without good knowledge of financial mathematics, it will most likely generate errors. What happens if an impairment test becomes necessary? Anyway, at a minimum of at least once a year we have to perform an analysis of impairment indicators.
If an impairment risk of fixed assets occurs, it takes a lot of time to identify the appropriate discounting rate and additional time is required to calculate projected free cash flows. Another challenge is to split the impairment charge into various groups of fixed assets or intangibles. In practice, an error may happen in each stage.
We have developed 24iValue for persons who have no idea how to perform an impairment test. With our services, even persons who for the first time tries to make a non-current asset impairment test will perform it in accordance with the requirements.
With 24iValue, in order to perform an impairment test for intangible or tangible assets you do not have to study the intricacies of financial mathematics and management accounting or market valuation. You will be provided with sufficient support, clarification and tips that will be displayed when the impairment test is performed in the module.
We do not need any advanced financial calculator, numerous spreadsheets or lots of computing. Now we have everything in one place. With 24iValue, you can do an impairment test on your own.
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Testing of Impairment of Fixed Assets