However, the procedures in assessing the asset for impairment are quite different. (29) The impairment losses indicated in the valuation reports are adjusted against the surplus revaluation reserves. A provision for impairment of receivables is established when there is objective evidence that the University will not be able to collect all amounts due according to the original terms of the receivable. Documentation of impairment assessment process. When you offer your customers the option to purchase on account, your "Accounts Receivable" account helps you track any open balances by customer. Part B - Measuring Recoverable Amount (36) The collectability of trade receivables is reviewed on an ongoing basis.   (38) Based on the age and category of the debtors, the University currently recognises an impairment provision, at the following rates, on the outstanding debtor balances as at the reporting date: You need to assess at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset (other than goodwill) may no longer exist or may have decreased. Incorporate the effects of the time value of money; Consider the cash flows for the whole of the remaining life of an asset; and. (14) A reversal of an impairment loss on a revalued asset is credited directly to equity under the heading revaluation reserve. Top of PageSection 2 - Scope Property, Plant and Equipment   Available-for-Sale Financial Assets An indicator of possible impairment is the ageing schedule of the debtor balances. 181-270 Based on the age and category of the debtors, the University currently recognises an impairment provision, at the following rates, on the existing debtor balances: When an available-for-sale financial asset is impaired, the cumulative loss that has been recognised directly in equity shall be removed from equity and recognised in the income statement even though the financial asset has not been derecognised. (30) Where there is insufficient balance in the revaluation reserve to cover the impairment losses of any class of PPE, the resulting loss is charged to ‘Central’ through the relevant impairment expense accounts. A provision for impairment of receivables is established when there is objective evidence that the University will not be able to collect all amounts due according to the original terms of the receivable. In the Income statement The loss is first set off against any revaluation surplus relating to the same class of assets in reserves and the balance of the loss is then treated as an expense in the income statement. Recognition of a recourse liability will make a loss on sale of receivables larger than it would otherwise have been. 91-180 (31) Trade Receivables are recognised initially at invoice value (fair value), and are subsequently re-measured at amortised cost using the effective interest method, less any provision for impairment. Join us as we go through a note issued at par that becomes an impaired note! To illustrate, Ogden Bank (the creditor) recognized an impairment loss of $12,434 by debiting Bad Debt Expense for the expected loss. DTTL and each of its member firms are legally separate and independent entities. receivables equivalent to amounts of booster charges in relation to which an impairment allowance - in these amounts until they received or written off, receivables past due or not past with a significant probability of defaults, according to the kind of business or client structure - the amount of reliably estimated impairment, including a kind of a general allowance for bad debts. Methodology for the impairment of receivables 6 Sponsors (exclude internal sponsors) Reversals of impairment losses a r e recognised [...] in other comprehensive income, except for financial assets that are debt securities which are recognised in profit or loss only if the reversal can be objectively related to an event occurring after the impairment loss was recognised. • Loans and receivables, including short-term trade receivables. impairment assessment requirements for investments in equity instruments because, as indicated above, they now can only be measured at FVPL or FVOCI without recycling of fair value changes to profit and loss. (36) The collectability of trade receivables is reviewed on an ongoing basis. c. Impairment losses incurred on financial assets on revenue account and reversal of such losses. 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