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Description

Asset Impairment: Testing, Measuring and Recording Impairment Losses

Know when an asset must be impaired and how to justify the amount recognised to your auditor

  • 0.43 days — 3 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

Asset impairment is often addressed under year-end closing pressure. Impairment indicators are not monitored during the year, valuation assumptions are reconstructed after the fact, and the file handed to the auditor amounts to a few lines. Any subsequent reversal is documented even less thoroughly.

This three-hour workshop is built around worked numerical cases. Participants identify the indicators that trigger a test, perform a recoverable amount assessment, record the impairment loss and then build the file supporting the assumptions applied.

Learning objectives

  • Identify impairment indicators during the financial year
  • Determine the recoverable amount of an asset from its fair value less costs of disposal and its value in use
  • Record the impairment loss and adjust the depreciation schedule
  • Handle the reversal of an impairment loss when conditions have changed
  • Build the assumptions file presented during the audit of the accounts

What makes this programme different

Each participant runs a complete impairment test on a fully quantified asset
Value-in-use assumptions are stress-tested through a sensitivity exercise
The supporting file expected by the auditor is built during the workshop

Programme

1Triggering the Test

Spotting the signals before the closing

  • Internal and external indicators of impairment
  • Scope covered and grouping of assets into cash-generating units
  • Test frequency and monitoring during the year
  • Documenting the absence of any indicator

2Measuring the Recoverable Amount

Selecting and defending your assumptions

  • Fair value less costs of disposal and value in use
  • Building the expected cash flow projections
  • Selecting the discount rate and testing the sensitivity of the outcome
  • Treatment of assets without independent cash flows

3Recognition, Reversal and Supporting Evidence

Translating the test into the accounts

  • Impairment entries and impact on profit or loss
  • Adjusting the depreciation schedule after impairment
  • Conditions and entries for a reversal
  • Contents of the supporting file and disclosures in the notes

Who is it for

Accountants and accounting managers, together with management controllers and auditors involved in closing activities.

Prerequisites

Practical experience of closing activities and of fixed asset measurement.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.