Impairment of fixed assets
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What is fixed asset? If you know that, then you should also be aware that fixed assets need impairment testing in some circumstances.
It is often assumed that fixed assets may not be impaired and no analysis of the impairment indicators is made that could confirm or not the impairment although such analysis has to be performed once a year.
If at least one impairment indicator occurs, a detailed impairment test is required to calculate an impairment provisionto fixed assets or confirm that the provision is not necessary.
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Next What is fixed asset? If you know that, then you should also be aware that fixed assets need impairment testing in some circumstances.
It is often assumed that fixed assets may not be impaired and no analysis of the impairment indicators is made that could confirm or not the impairment although such analysis has to be performed once a year.
If at least one impairment indicator occurs, a detailed impairment test is required to calculate an impairment provisionto fixed assets or confirm that the provision is not necessary.
