Impairment Loss Recoverability One Step Test Tool
Apply declared one-step recoverable-amount model using higher FV-less-disposal/value-in-use, without an undiscounted-cash recoverability gate; not interchangeable with US GAAP two-step long-lived-asset tests or impairment reversal rules.
Description
A one-step impairment scenario compares carrying value with the higher of two independently measured recovery values.
A one-step impairment scenario compares carrying value with the higher of two independently measured recovery values. An undiscounted-cash screening gate is absent.1
The returned values include Caller one step recoverable amount minor, One step impairment loss minor, Post test carrying minor. The How section below explains the calculation, input rules and interpretation.
When to use Impairment Loss Recoverability One Step Test Tool
Use Impairment Loss Recoverability One Step Test Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No valuation, US GAAP two-step applicability or impairment-reversal rule is supplied.
Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
How to use Impairment Loss Recoverability One Step Test Tool and understand its results
- Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
- Enter carryingAmountMinor, fairValueLessDisposalCostsMinor, valueInUseMinor using the field table and calculation rules, then run the tool.
- Read callerOneStepRecoverableAmountMinor, oneStepImpairmentLossMinor, postTestCarryingMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| carryingAmountMinor | Carrying amount minor | number | Required |
| fairValueLessDisposalCostsMinor | Fair value less disposal costs minor | number | Required |
| valueInUseMinor | Value in use minor | number | Required |
Enter three nonnegative safe-integer money amounts. Return recoverable amount, nonnegative impairment loss and carrying value after loss.
recoverable=max(fairValueLessDisposal,valueInUse); loss=max(0,carrying−recoverable) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| callerOneStepRecoverableAmountMinor | Caller one step recoverable amount minor | number |
| oneStepImpairmentLossMinor | One step impairment loss minor | number |
| postTestCarryingMinor | Post test carrying minor | number |
{
"input": {
"carryingAmountMinor": 1000,
"fairValueLessDisposalCostsMinor": 600,
"valueInUseMinor": 800
},
"output": {
"callerOneStepRecoverableAmountMinor": 800,
"oneStepImpairmentLossMinor": 200,
"postTestCarryingMinor": 800
}
}Limitations and assumptions
No valuation, US GAAP two-step applicability or impairment-reversal rule is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Lower Of Cost Or Market Write Down Checker: This lower-of-cost-or-market scenario constrains replacement cost between an NRV ceiling and an NRV-minus-normal-profit floor. It differs from a direct cost-versus-NRV test. For a complementary task, use Goodwill Purchase Price Allocation Acquisition Calculator: Acquisition measurement compares consideration plus NCI and previously held interest with identifiable net assets. A negative difference is a bargain-purchase candidate pending reassessment.
References
Similar or alternative tools
- Lower Of Cost Or Market Write Down Checker
This lower-of-cost-or-market scenario constrains replacement cost between an NRV ceiling and an NRV-minus-normal-profit floor. It differs from a direct cost-versus-NRV test.
- Goodwill Purchase Price Allocation Acquisition Calculator
Acquisition measurement compares consideration plus NCI and previously held interest with identifiable net assets. A negative difference is a bargain-purchase candidate pending reassessment.