• Register
Search IFRS Questions / Answers




Welcome to IFRSanswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login few seconds

Get IFRSanswer App

Forensic Accounting

Difference between impairment & amortization


What is the difference between impairment & amortization? Are they same?

asked Apr 20, 2013 in IAS 36 - Impairment of Assets by anonymous
retagged Apr 23, 2013 by Mysio
Anyone to answer?

1 Answer

0 votes
As per IAS 36, impairment is the amount by which its carrying amount exceeds its recoverable amount.
-Carrying amount: the amount at which an asset is recognised in the balance sheet after deducting accumulated depreciation and accumulated impairment losses
-Recoverable amount: the higher of an asset's fair value less costs to sell (sometimes called net selling price) and its value in use

Amortization mean the systematic allocation of an asset to the the income statement on the use of that asset. Amortization is similar to depreciation but the term amortization is used with regard to intangible assets.
answered May 12, 2013 by Mysio Level 5 Member (19,360 points)



...