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FRS 102: Impairment of assets under UK GAAP

FRS 102 Section 27 Impairment of Assets sets out the requirements that apply to the impairment of assets and the recognition of impairment losses.

The standard

The requirements regarding impairment of assets are set out as part of FRS 102. However, individual sections of the standard should not be looked at in isolation as other parts may be relevant.

FRS 102 is regularly updated and amended by the Financial Reporting Council (FRC). For the full text of FRS 102, guidance on which version of the standard to apply and notes on recent amendments, see our main FRS 102 page.

ICAEW guides and support

Helpsheets and factsheets

FRS 102 - Impairment of assets

07-03-2018

This factsheet is a summary of the basic principles of accounting for impairment with practical guidance to will help with implementation.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Impairment of Assets

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Steve Collings Small Company Financial Reporting August 2022

A chapter on impairment of assets within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues. FRS 102 Section 27 and the impairment of inventories, impairment of assets other than inventory and impairment of goodwill are discussed, along with helpful real-life examples.

Impairment of Assets

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Steve Collings Financial Reporting for Unlisted Companies in the UK and Republic of Ireland 2021

A chapter on financial reporting of impairment of assets under UK GAAP. Sections include: Impairment of inventory; Impairment of assets other than inventories; Reversal of an impairment loss; Disclosure requirements. This practical manual focuses on unlisted companies and has been comprehensively updated to reflect changes issued by the Financial Reporting Council (FRC) since 2019.

Property, plant and equipment

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Steve Collings Financial Reporting for Unlisted Companies in the UK and Republic of Ireland 2021

A detailed, practical chapter on financial reporting of property, plant and equipment under FRS 102, section 17 and FRS 105, section 12. Includes sections on initial recognition, subsequent measurement, depreciation, impairment of assets, derecognition and disclosure requirements, with many worked examples.

Depreciation, amortisation and impairment

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Julia Penny Accounting Principles for Tax Purposes 2021

A chapter on the general principles of accounting for depreciation, amortisation and impairment, together with the specific requirements of FRS 102, Section 27, 'Impairment', in this accessible introduction to the accounting rules relevant to tax computations in the UK.

Covid-19 issues

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Steve Collings UK Financial Statements - Presentation and Disclosure Requirements March 2021

A chapter focusing on Covid-19-specific issues in relation to financial statements under new UK GAAP, to help readers understand what reporting entities may need to deal with when preparing their annual reports. The chapter covers events after the end of the reporting period, impairment of assets, going concern, government assistance, judgements and estimation uncertainties.

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Impairment of assets

Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter gives a comparison of FRS 102 Section 27 and IFRS, and covers the requirements for impairment, impairment of assets other than inventories, goodwill and its allocation to CGUs, recognising and measuring impairment losses, reversal of an impairment loss, and disclosures.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Example accounts

Model accounts and disclosure checklists for UK GAAP
The ICAEW Library can provide model accounts and disclosure checklists for FRS 101, FRS 102, FRS 102 Section 1A, FRS 103 and FRS 105. The examples and checklists cover a broad range of entities, including small companies, charities, groups, LLPs and micro-companies.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest UK GAAP handbooks and manuals. You can browse all our books on FRS 102 and impairment of assets or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

GAAP 2019: UK reporting – FRS 102 (Volume B)
Deloitte, Croner-i, 2019
Comprehensive manual explaining how to apply FRS 102, with worked examples and extensive interpretation and guidance. The chapter on impairment of assets covers impairment of inventories, impairment of assets other than inventories, reversal of an impairment loss, and disclosures.

Manual of accounting: UK GAAP
PwC, Lexis Nexis, 2019
Practical guide with worked examples throughout, dealing with day-to-day issues as well as complex questions. The chapter on impairment of assets looks at impairment of inventories, impairment of other assets, additional requirements for impairment of goodwill, issues for parent companies and subsidiaries, reversal of an impairment loss, and presentation and disclosures.

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