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Description

IAS 36 Impairment Testing: Identifying Indicators, Measuring Value and Documenting the Test

Run a defensible impairment test when the business plan also serves as a commercial argument

  • 1 day — 7 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

Impairment testing always runs into the same difficulties: defining cash-generating units, allocating goodwill, selecting a discount rate consistent with the cash flows and supporting a terminal value. Business plans submitted by operational teams are often optimistic, and assumptions change from one reporting period to the next without explanation.

This seven-hour programme is devoted to performing the test in accordance with IAS 36. Participants learn to identify indicators of impairment, build recoverable amount under both approaches, run sensitivity analyses and prepare the documentation supporting the test.

Learning objectives

  • Identify indicators of impairment at the level of an asset or a group of assets
  • Define cash-generating units and allocate goodwill to them
  • Determine value in use from internally consistent cash flow projections
  • Estimate fair value less costs of disposal
  • Build a discount rate consistent with the cash flows used
  • Document the test and carry out the expected sensitivity analyses

What makes this programme different

The test is built in a spreadsheet, from the business plan through to the impairment loss recognised
Classic inconsistencies between cash flows and discount rates are exposed through calculation
Sensitivity analyses are prepared in the form auditors will request them

Programme

1Scope, Indicators and Cash-Generating Units

Knowing when to test and at what level

  • Assets within the scope of the standard and frequency of testing
  • Internal and external indicators of impairment
  • Defining cash-generating units
  • Allocating goodwill and corporate assets
  • Consequences of an organisational change on the units identified

2Building the Recoverable Amount

Two approaches and one shared concern for consistency

  • Value in use and construction of projected cash flows
  • Explicit forecast horizon, terminal value and long-term growth rate
  • Fair value less costs of disposal and market references
  • Determining the discount rate and consistency with the nature of the cash flows
  • Treatment of financing cash flows and of tax

3Recognition, Sensitivity and Disclosures

Making the test open to challenge and fully documented

  • Determining and allocating the impairment loss within the unit
  • Reversals of impairment and the limits applicable to goodwill
  • Sensitivity analyses on the key assumptions
  • Information to be disclosed in the notes to the financial statements
  • Compiling the file supporting the test

Who is it for

Consolidation managers and financial controllers, as well as management accountants, auditors and financial analysts working under IFRS.

Prerequisites

A sound understanding of the general principles of IFRS and of discounting techniques.

Dates & locations

24 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.