
Sulev Luiga
Recognising assets at their correct value is, among other things, related to the due care of an entity’s management and auditors.
An asset is impaired when its carrying amount exceeds the value of the future economic benefits it is able to generate. In this case, the asset must be written down to its recoverable amount.
The following indications, individually or in combination, may refer to impairment of assets (Estonian Financial Reporting Standard, ASBG 5):
Based on an impairment test, the amount of an impairment loss, if any, must be determined and documented.
If you are a board member, a CFO, an accountant or an auditor and have noticed some or any of the circumstances listed above, please contact BDO Estonia’s financial services advisers to receive an assessment of whether an asset is impaired.
Sulev Luiga