注会-会计英语讲义(11)

会计英语基础讲义

●internal reports that indicate that the economic performance of an asset is, or will be, worse than expected.

1. Cash flows for acquiring the asset, or subsequent cash needs for operating or maintaining it, are significantly higher than originally budgeted.

2. Operating profit or loss, or actual net cash flows, are significantly worse than those budgeted.

3. A significant decline in budgeted net cash flows or operating profit, or a significant increase in budgeted loss.

4. Operating losses or net cash outflows for the asset, if current period amounts are aggregated with budgeted amounts for the future.

External sources include：

●a significant fall in the asset’s market value

●an adverse change in the company’s competitive or regulatory environment ●a significant increase in market interest rates

●a key employer in the locality where a company carries on business closes down ●the balance sheet value of an entity exceeds market capitalisation.

Example：Impairment Review

At 31 December 20X5, the directors of Ramsey plc carry out a review for impairment of the net assets of a company, Drummond plc, acquired at the beginning of 20X5. Drummond plc comprises a single cash generating unit within the activities undertaken by Ramsey plc.

The net assets of Drummond plc immediately before the impairment review (which took place on 31 December 20X5) consisted of the following：

The following information is relevant to the impairment review：

●Ramsey plc’s accountants have budgeted the future cash flows expected to arise from the continuation of the activities of Drummond plc. These are： 20X6 – $106m, 20X7 – $124m, 20X8 – $70m, and 20X9 – $45m.

●Drummond plc could be sold on 31 December 20X5 for $154m.

Further investigations revealed the following：

●The production licence has no ascertainable market value, but is expected to

generate future economic benefits for the entity at least equivalent to its present carrying value.

●The specialist plant had been damaged and cannot be used in the business. It can be sold for scrap for $20m.