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Impairment (Impairment of Assets)

Impairment is the process of recognizing losses when the carrying amount of an asset exceeds its recoverable amount, in compliance with IAS 36 / CPC 01. The process is done in batches, with a mandatory technical report attachment.

When to Use​

Apply impairment when there are indicators that an asset may have lost value, such as:

  • Significant market decline
  • Technological obsolescence
  • Physical damage to the asset
  • Adverse changes in the economic or legal environment

General Flow​

  1. Create an impairment batch (period + reason)
  2. Add items to the batch (one asset per item, with the new recoverable amount)
  3. Attach the technical report (required to confirm)
  4. Confirm the batch — losses are automatically recognized in the result

Batch Status​

StatusDescription
DraftBatch under editing. Items and attachments can be added or removed.
ConfirmedBatch closed. Cannot be edited. Losses already recognized.

Create an Impairment Batch​

  1. Go to Operations → Impairment
  2. Click + New Impairment
  3. Fill in:
    • Reason — Description of the loss reason (e.g.: obsolescence, accident)
    • Period — Reference accounting period
    • Description — Free-text note (optional)
  4. Click Save

Add Items to the Batch​

  1. In the batch detail (Draft status), click + Add Item
  2. Fill in:
    • Asset — Select the asset with an identified loss
    • Fair Value — Recoverable amount assessed in the report (required, > 0)
  3. Click Save

The system automatically calculates:

  • Carrying value before impairment
  • Loss = Current carrying value − Recoverable amount
  • The amount is posted directly to the Period Result (P&L)
info

Unlike revaluation, impairment never generates a gain — it only recognizes losses. If the recoverable amount is greater than the carrying value, no entry is made.

Batch Import​

For large volumes, items can be imported via spreadsheet:

  1. In the batch detail, click Import
  2. Download the spreadsheet template
  3. Fill in asset data and recoverable amounts
  4. Upload the completed spreadsheet

Attach Technical Report​

Confirmation requires at least one attachment:

  1. In the Attachments section of the batch detail, click Attach file
  2. Select the technical report (PDF, DOCX etc.)
  3. The file is linked to the batch for audit purposes

Confirm Batch​

Prerequisites
  • The batch must have at least one item
  • The batch must have at least one attachment (report required)
  1. In the batch detail, click Confirm
  2. Confirm the operation in the dialog
  3. The system recognizes the losses and changes the status to Confirmed

After confirmation, the batch can no longer be edited.

Impairment Impacts​

When confirming the batch:

  • Each asset's carrying value is reduced to the informed recoverable amount
  • The loss is posted as an Expense in the Period Result
  • Future depreciation is recalculated based on the new carrying value
  • The report remains archived and auditable