Maximizing Financial Health: Mastering the Impairment Valuation of Company Asset

1. +91 9868455181 valuer.tka@gmail.com Home About Us Services3 Our Valuation3 Blog Contact Impairment Property Valuation 1. Assessment Phase: The assessment phase involves gathering relevant data and information about the asset or business being evaluated for impairment. This phase includes a comprehensive review of financial statements, historical performance, market conditions, industry trends, and any other factors that may impact the value of the asset. During this phase, impairment indicators are identified based on applicable accounting standards or guidelines. These indicators can include a significant decline in market value, adverse changes in the asset’s operating environment, or changes in legal or regulatory factors. The assessment phase also involves estimating the asset’s recoverable amount, which is the higher of its fair value less costs to sell, or its value in use. This estimation is typically done through cash flow projections, market comparisons, and other relevant valuation techniques. 2. Valuation and Reporting Phase: In the valuation and reporting phase, the estimated recoverable amount is compared to the asset’s carrying value to determine if impairment exists. If the carrying value exceeds the recoverable amount, an impairment loss is recognized. Valuation experts employ appropriate valuation methodologies, such as discounted cash flow analysis, market multiples, or other recognized approaches, to determine the fair value of the impaired asset. Once the impairment loss is determined, it is recorded in the financial statements and disclosed by the applicable accounting standards. A comprehensive impairment valuation report is prepared, documenting the methodologies used, assumptions made, and the resulting fair value determination. This phase may also involve additional considerations such as assessing the recoverability of related deferred tax assets or evaluating any potential reversals of previously recognized impairments. These two phases, assessment and valuation/reporting, form a comprehensive process for impairment valuation services. They ensure that impaired assets or businesses are accurately evaluated, allowing stakeholders to make informed decisions based on the fair value of their assets.

2. Impairment of Assets Impairment of Company Assets Impairment Assessment An impaired asset is an asset that has a market value less than the value listed on its owner’s balance sheet. According to U.S. accounting rules, the value of an asset is impaired when the sum of estimated future cash flows from that asset is less than its book value. An impairment cost must be included under expenses when the book value of an asset exceeds the recoverable amount. Impairment of assets is the diminishing in amount, or value of an asset. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through the use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires recognize an impairment loss. quality, strength the entity to Impairment valuation Ind AS 36 Ind AS 40 An impairment loss is an amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value in use. The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its exceeds the amount to be recovered through the use or sale of the asset Permits interest held in an operating lease as investment property, if the definition of investment property is otherwise met and fair value model is applied. In such cases, the operating lease would be accounted as if it were a finance lease. treatment of property carrying amount Investment Property Valuation Investment value is the amount of money an investor would pay for a property. It refers to an asset’s specific value based parameters. It is measurement of the asset’s property value. on individual’s certain an

4. CONTACT US First Name Last Name Email Address Phone Number Message SEND MESSAGE About Company Our Services Contact Us A Unlocking the true value of your assets. We are your go-to Lands +91 9868455181 team for all your property valuation needs. Professional, A Registered Property Valuation reliable and experienced. A valuer.tka@gmail.com Commercial Property A Mortgages 303 3rd Floor Bansal Tower Community A         Institutional Property Center-II, Ashok Vihar-II, Delhi A Property Markets Copyright © 2023 Tanuj Kumar & Associates Terms & conditions Privacy Policy Desiged By : danstring.com