Impairment test
This test makes it possible to ensure that a company’s assets are not recorded in the books with a value greater than their recoverable value.
Indications of deterioration can be:
- Changes in the market values of goods
- Changes in the legal, technological or economic environment of the goods
- Effects on interest rates that affect the current discount rate used
- functional obsolescences
- Economic obsolescence
- Technological obsolescence
To which assets is the impairment test applied?
In the case of fixed assets when they show signs of impairment.
When there are changes in the asset use plans, such as:
- Restructuring
- Discontinuity of operations
- Provisions before the scheduled date
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