Psak 48 (2013) Impairment: Table of Content

PSAK 48 (2013) IMPAIRMENT
ABSTRACT
The term of impairment is usually associated with a long-lived asset that has market which
decreased significantly. An impairment of asset arises when there is a sudden drop in the fair
value of an asset below its recorded cost. PSAK 48 (Revised 2013) states that impairment
occurs when carrying amount exceeds assets recoverable amount. Before that, internal or
external indications of impairment must present and impairment test must be taken to show
that carrying amount of the asset exceeds recoverable amount. Then, we get the reduction of
the carrying amount exceeds recoverable amount known impairment loss. For critical point,
how to account recoverable amount, specially value in use, is in management control. This is
related to the hierarchy of fair value. Next, in PSAK 48, impairment loss can be reversed.
Reversing impairment also occurs when internal or external indications of reversing present.
Keyword: impairment, impairment lost, PSAK 48, IAS 36, revaluation
TABLE OF CONTENT
Abstract
Table of Content
A. PREFACE 3
1. Background
3
1
2. Problem Statement
3. Purpose of The Paper
4. Research Methodology 3
B. PSAK 48 AND RELATED ON IMPAIRMENT OBSERVATION 3
1. Scope 3
2. Effective Date 4
3. History 4
4. Impairment Related on The Conceptual Framework
5. The Differences Between PSAK 48 and IAS 36 5

6. Definition
a. Impairment
b. Carrying Amount
c. Recoverable Amount
d. Fair Value less Cost to Sell 5

e. Value in Use
5
f.
Cash Gerenating Unit (CGU)
7. Recognition
a. Identifying Assets that May Be Impaired

b. Impairment Test
c. Recognition of an Individual Asset 7

d. Recognition of Cash Generating Unit (CGU)
8. Measurement
a. Measurement of an Individual Asset 8

b. Measurement of Cash Generating Unit
10
9. Reversing of Impairment Loss 13

10. Disclosure of Impairment
14
11. Impairment versus Revaluation 14

C. CRITICAL POINT
D. CONCLUSION 16
E. REFERENCE
17
15
A. PREFACE
1. Background
The term of impairment is usually associated with a long-lived asset that has market which
decreased significantly. An impairment of asset arises when there is a sudden drop in the fair
value of an asset below its recorded cost. The accounting for asset impairment is to write off
the difference between the fair value and the recorded costknown as carrying amount. Some
impairments can be really large that they cause a significant decline in the reported asset base
and profitability of a business. Impairment only occurs when the amount is not recoverable.
This happens when the carrying amount exceeds the sum of the undiscounted cash flows
expected from the use of asset over its remaining useful life and the final disposition of asset.
Here, PSAK 48 specifies the procedures to ensure that assets are carried at no more than their
recoverable amount.
2. Problem Statement
The problem statements of this paper are to explain about :
a.
b.
c.
d.
What is the impairment?

What is the difference between PSAK 48 and IAS 36?
How do we account an impairment in accordance with PSAK 48?
What is the relation between impairment and revaluation model?
3. Purpose of The Paper

This paper is to observe and explain about the application of PSAK 48(Revised 2013)
adopted from IAS 36 in Indonesia. Therefore, this paper will also explain the critical poin in
the application of PSAK 48.
4. Research Methodology
The methodology used in this paper is secondary analysis. This paper analyzing datacollected
by primary and secondary sources. The primary sources are PSAK 48 and IAS 36. Hence, the
secondary sources are academicbooks, journals, and websites.
B. PSAK 48 AND RELATED ON IMPAIRMENT OBSERVATION
1. Scope
PSAK 48 be applied in accounting for the impairment of all assets, other than 1:
a) inventories (see PSAK 14);
b) assets arising from construction contracts (see PSAK 34);
c) deferred tax assets (see PSAK 46);
d) assets arising from employee benefits (see PSAK 24);
e) financial assets (see PSAK 55);
f) investment property that is measured at fair value (see PSAK 13);
g) deferred acquisition costs, and intangible assets, arising from an insurers contractual
rights under insurance contracts (see PSAK 28); and
h) non-current assets (or disposal groups) classified as held for sale (see PSAK 58)
However, PSAK 48 applies to (among other assets):
a) Land
b) Buildings
c) Machinery and equipment
d) Investment property carried at cost
1PSAK 48 (2013), paragraph 02
e) Intangible assets
f) Goodwill
g) Investments in subsidiaries, associates, and joint ventures carried at cost
h) Assets carried at revalued amounts under PSAK 16and PSAK 19.
2. Effective Date
An entity shall apply PASK 48 for annual period begins on or after January 1,2013. Entity
applies this standardprospectively including goodwill and itangible assets arase from business
combination before this standard effective date and other assets arrived before this standard
effective date.2
3. History
The history of PSAKs adoption from the guidance of IAS 36 can be summarised below.
Table B.3.1
Date
Developmet
May 1997
Comments
Exposure Draft E55 Impairment of Assets

IAS 36 Impairment of Assets
June 1998
March
2004
31,
IAS
36 Impairment
Assets revised
of
May
2008
22,
Amended by Annual Improvements to IFRSs 2007
April
2009
16,
Amended
by
anual
improvement to IFRSs 2009
May
2013
29,
Amended by
recoverble
amount disclosure for non
financial assets.
Operative for financial statements

covering periods beginning on or
after 1 July 1999
Applies to goodwill and itangible
assets acquired in business
combination
for which the
agreement date is on or after 31
March 2004
Effective for annual periods
beginning on or after 1 January
2009
2010
2014
PSAK
PSAK 48
(Revisi 1998)
PSAK 48 (Revisi 2009)

Efektifve Date: 1 Januari
2011
PSAK 48 (Revisi 2013)
Efektive Date: 1 Januari
2015
4. Impairment Related on The Conceptual Framework

Related on the conceptual framework,
a. PSAK 48 reflectsrelevance concept over reliability concept for measuremet point.
b. PSAK 48 reflects consistency concept on recognition and measuremet point.
c. PSAK 48 reflects representative faithfullness on measurement and discosure point.
d. PSAK 48 reflects materialism concept for recognition point.
5. The Differences Between PSAK 48 and IAS 36
PSAK 48 adopt all standard of IAS 36, with the eceptional of :
a. Agricultural assets carried at fair value on IAS 41;
b. Rule of effective date, transition period, and early applying option; and
c. Rule on appendix B of IAS 36.
6. Definition
a. Impairment Loss
An impairment loss is the amount by which the carrying amount of an asset or a cashgenerating unit exceeds its recoverable amount. 3
b. Carrying Amount
Carrying amount is the amount at which an asset is recognised after deducting any
accumulated depreciation (amortisation) and accumulated impairment losses thereon. 4
c. Recoverable Amount for an Assets or Cash Generating Unit
Recoverable amount is the higher of an asset or CGUs fair value less costs of disposal
(FVLCOD) and its value in use. 5
d. Fair Value less Cost to Sell
Fair value less costs to sellis the amount obtainable from the sale of an asset or cashgenerating unit in an arms length transaction between knowledgeable, willing parties,
less the costs of disposal.6
e. Value in Use
Value in useis the present value of the future cash flows expected to be derived from an
f.
asset or cash-generating unit.7

Cash Gerenating Unit (CGU)
A cash-generating unitis the smallest identifiable group of assets that generates cash
inflows that are largely independent of the cash inflows from other assets or groups of
assets.8
6. Recognition
a. Identifying Assets that may be Impaired
If any of indications, some indications that an impairment loss may have occurred, is
present, an entity is required to make a formal estimate of assets recoverable amount. If
not, an entity does not require to make it.
There are two kinds of impairment indication. First is external sourches of information
and the other is internal sourches of information.
External sources of information are including9 :


9PSAK 48 (2013), paragraph 12 (a, b, c, d)
1) there is an observationed indication that an assets market value has declined

significantly more than would be expected as a result of the passage of time or normal
use;
2) significant changes with an adverse effect on the entity have taken place during the
period, or will take place in the near future, in the technological, market, economic or
legal environment in which the entity operates or in the market to which an asset is
dedicated;
3) market interest rates or other market rates of return on investments have increased
during the period, and those increases are likely to affect the discount rate used in
calculating an assets value in use and decrease the assets recoverable amount
materially,
4) the carrying amount of the net assets of the entity is more than its market
capitalisation.
Whereas, internal sourches information such as 10:
1) evidence is available of obsolescence or physical damage of an asset.
2) significant changes with an adverse effect on the entity have taken place during the
period, or are expected to take place in the near future, in the extent to which, or
manner in which, an asset is used or is expected to be used. These changes include the
asset becoming idle, plans to discontinue or restructure the operation to which an
asset belongs, plans to dispose of an asset before the previously expected date, and
reassessing the useful life of an asset as finite rather than indefinite.
3) evidence is available from internal reporting that indicates that the economic
performance of an asset is, or will be, worse than expected.
b. Impairment Test
Impairment test is a procedure to prove that an asset has occured an impairment after the
indications of impairment is present.
c. Recognition of an Individual Asset
For an individual asset other than goodwil, impairment is recognized if, and only if, the
recoverable amount of an asset is less than its carrying amount. So, the carrying amount
of the asset shall be reduced to its recoverable amount. Then, this reduction is an
impairment loss. 11
After impairment test applied, an impairment loss shall be recognised immediately in
profit or loss, unless the asset is carried at revalued amount in accordance with another
Standard (for example, in accordance with the revaluation model in PSAK 16: Aset
Tetap). Any impairment loss of a revalued asset shall be treated as a revaluation decrease
in accordance with that other Standard.12
10PSAK 48 (2013), paragraph 12 (e,f,g)
11PSAK 48 (2013), paragraph 58, 59
An impairment loss on a non-revalued asset is recognised in profit or loss. However, an

impairment loss on a revalued asset is recognised in other comprehensive income to the
extent that the impairment loss does not exceed the amount in the revaluation surplus for
that same asset. An impairment loss on a revalued asset reduces the revaluation surplus
for that asset.13
When the amount estimated for an impairment loss isgreater than the carrying amount of
the asset to which it relates, an entity shall recognise a liability if, and only if, that
isrequired by another Standard. 14After the recognition of an impairment loss, the
depreciation (amortisation) charge for the asset shall be adjusted in future periods to
allocate the assets revised carrying amount, less its residual value (if any), on a ystematic
basis over its remaining useful life. 15If an impairment loss is recognised, any related
deferred tax assets or liabilities are determined in accordance with IAS 12 by comparing
the revised carrying amount of the asset with its tax base. 16
d. Recognition of Cash Generating Unit (CGU)
Cash Generating Unit is determined if there is any indication that an asset may be
impaired, but recoverable amount for the individual asset is not possible to be estimated
or determined.
The recoverable amount of an individual asset cannot be determined if 17:
1) the assets value in use cannot be estimated to be close to its fair value less costs to
sell (for example, when the future cash flows from continuing use of the asset cannot
be estimated to be negligible); and
2) the asset does not generate cash inflows that are largely independent of those from
other assets.
In such cases, value in use and recoverable amount can be determined only for the assets
cash-generating unit. For the example, a bus company provides services under contract
with a municipality that require minimum service on each of five separate routes. Assets
devoted to each route and the cash flows from each route can be identified separately.
However, one of the routes operates at a significantloss. Because the entity does not have
the option to curtail anyone bus route, the lowest level of identifiable cashinflows that are
largely independent of the cash inflow from other assets or groups of assets is the cash
inflows generated by the five routes together. The cash-generating unit for each route is
the bus company as a whole.
7.Measurement
a. Measurement of an Individual Asset
The recoverable amount of an asset is measured from the HIGHER VALUE of the asset's
fair value less costs of disposal and its value in use.
1) The asset's fair value less costs of disposal
An asset's fair value less costs of disposal is a price of a binding sale agreement in an
arms length transaction, adjusted for incremental costs that would be directly
attributable to the disposal of the asset.
a) If there is no binding sale agreement but an asset is traded in an active market,
fair value less costs to sell is the assets market price less the costs of disposal.
The appropriate market price is usually the current bid price. 18
b) If there is no binding sale agreement or active market for an asset, fair value less
costs to sell is based on the best information available to reflect the amount that
an entity could obtain, at the end of the reporting period, from the disposal of the
asset in an arms length transaction between knowledgeable, willing parties, after
deducting the costs of disposal.19
Fair value less costs of disposal cannot be reduced, however, by including within
costs of disposal any restructuring or reorganisation expenses, or any costs that have
already been recognised in the accounts as liabilities.
2) value in use
The concept of 'value in use' is very important.
The value in use of an asset is measured as the present value of estimated future cash
flows (inflows minus outflows) generated by the asset, including its estimated net
disposal value (if any) at the end of its expected useful life.
The following elements shall be reflected in the calculation of an assets value in use:
a) an estimate of the future cash flows the entity expects to derive from the asset;
b) expectations about possible variations in the amount or timing of those future
cash flows;
c) the time value of money, represented by the current market risk-free rate of
interest;
d) the price for bearing the uncertainty inherent in the asset; and
e) other factors, such as illiquidity, that market participants would reflect in pricing
the future cash flows the entity expects to derive from the asset. 20
Composition of estimates of future cash flows shall include:
a) projections of cash inflows from the continuing use of the asset;

b) projections of cash outflows that are necessarily incurred to generate the cash
inflows from continuing use of the asset (including cash outflows to prepare the
asset for use) and can be directly attributed, or allocated on a reasonable and
consistent basis, to the asset; and
c) net cash flows, if any, to be received (or paid) for the disposal of the asset at the
end of its useful life.21
For ilustration about value in use, assume that an entity has a 5 year forecast period,
the formula to determine the terminal value (TV) as attheendofyear5is:
TV5= ( CashFlow5 x (1+g*) ) (WACC - g*)
Cash Flow5 = the forecasted cash flow in year 5
g* = the estimated long-term growth rate
WACC = Weighted Average Cost of Capital (see 4.4.2 below)
The terminal value (TV5) is discounted back from the end of the forecast period at
the applicable discount rate.
Source: BDO International

Study case about impairment individual asset:
OKE Limited owns a plant, its largest non-current asset, that originally cost
$700.000 on 1/1/20X1 and which has a carrying amount of $350.000 at 31/12/20X5.
Plant is depreciated straight-line to a nil residual value over a 10 year estimated
useful life.
OKE Limited performed a test of impairment (at 31/12/20X5) to assess whether this
asset might be impaired. Initial information collected for the purpose of review
includes:
price from the plant 31 December 20X5 in active market is $220.000 with cost
to sell $10.000
The present value of the future net cash inflows from the plant is $190.000.
Required:
Discuss whether the recoverable amount must be calculated at 31 December 20X5
(year-end).
Solution:
Carrying Amount Asset = $350.000
Recoverable CA
= Fair value less cost to sell
(higher than value in use)

Fair value less cost to sell
= $220.000-$10.000 = $200.000
Value in use
= $190.000
Impairment lost
= CA RCA = $350.000 - $ 200.000 = $150.000
The journal entry would be:
Impairment Loss 150.000
Accumulated Impairment Losses 150.000
b. Measurement of Cash Generating Unit
When it is not possible to calculate the recoverable amount of a single asset, then that of
its cash generating unit should be measured instead
1) Use of cash-generating unit
The IAS goes into quite a large amount of detail about the important concept of cash
generating units. As a basic rule, the recoverable amount of an asset should be
calculated for the asset individually. However, there will be occasions when it is not
possible to estimate such a value for an individual asset, particularly in the calculation
of value in use.
The carrying amount of a cash-generating unit shall be determined on a basis
consistent with the way the recoverable amount of the cash-generating unit is
determined.22
The carrying amount of a cash-generating unit:
a) includes the carrying amount of only those assets that can be attributed directly,
or allocated on a reasonable and consistent basis, to the cash-generating unit and
will generate the future cash inflows used in determining the cash-generating
units value in use; and
b) does not include the carrying amount of any recognised liability, unless the
recoverable amount of the cash-generating unit cannot be determined without
consideration of this liability.
This is because fair value less costs to sell and value in use of a cash-generating unit
are determined excluding cash flows that relate to assets that are not part of the cashgenerating unit and liabilities that have been recognised. 23
2) Allocating goodwill to cash-generating units
Goodwill acquired in a business combination does not generate cash flows
independently of other assets. It must be allocated to each of the acquirer's cashgenerating units (or groups of cash-generating units) that are expected to benefit from
the synergies of the combination. Each unit to which the goodwill is soallocated
should:
a) represent the lowest level within the entity at which the goodwill is monitored for
internal management purposes; and
10
b) not be larger than an operating segment as defined by paragraph 5 of IFRS 8

Operating Segments before aggregation.24
It may be impracticable to complete the allocation of goodwill before the first
reporting date after a business combination, particularly if the acquirer is accounting
for the combination for the first time using provisional values. The initial allocation
of goodwill must be completed before the end of the first reporting period after the
acquisition date.
3) Testing cash-generating units with goodwill for impairment
A cash-generating unit to which goodwill has been allocated is tested for impairment
annually. The carrying amount of the unit, including goodwill, is compared with the
recoverable amount. If the carrying amount of the unit exceeds the recoverable
amount, the entity must recognise an impairment loss.
The annual impairment test may be performed at any time during an accounting
period, but must be performed at the same time every year.
4) Accounting treatment of an impairment loss
If, and only if, the recoverable amount of an asset is less than its carrying amount in
the statement of financial position, an impairment loss has occurred. This loss should
be recognised immediately
a) The asset's carrying amount should be reduced to its recoverable amount in the
statement of financial position.
b) The impairment loss should be recognised immediately in profit or loss (unless
the asset has been revalued in which case the loss is treated as a revaluation
decrease).
After reducing an asset to its recoverable amount, the depreciation charge on the asset
should then be based on its new carrying amount, its estimated residual value (if any)
and its estimated remaining useful life.
An impairment loss should be recognised for a cash - generating unit if (and only if)
the recoverable amount for the cash- generating unit is less than the carrying amount
in the statement of financial position for all the assets in the unit. When an
impairment loss is recognised for a cash- generating unit, the loss should be allocated
between the assets in the unit in the following order.
a) first, to reduce the carrying amount of any goodwill allocated to the cashgenerating unit (group of units); and
b) then, to the other assets of the unit (group of units) pro rata on the basis of the
carrying amount of each asset in the unit (group of units). 25

11
In allocating an impairment loss, the carrying amount of an asset should not be

reduced below the highest of:
a) Its fair value less costs of disposal;
b) Its value in use (if determinable);
c) Zero.26
8.Reversing an Impairment Loss

The annual assessment to determine whether there may have been some impairment should be
applied to all assets, including assets that have already been impaired in the past.
In some cases, the recoverable amount of an asset that has previously been impaired might
turn out to be higher than the asset's current carrying value. In other words, there might have
been a reversal of some of the previous impairment loss.
1) The reversal of the impairment loss should be recognised immediately as income in profit
or loss.
2) The carrying amount of the asset should be increased to its new recoverable amount.
An exception to this rule is for goodwill. An impairment loss for goodwill should not be
reversed in a subsequent period.
The example study case about impairment:
At the beginning of a year a company purchased a building for 2 million. Its estimated
useful life at that date was 20 years and the company uses straight line depreciation method.
After 5 years the government embarked on a plan to construct a fly-over adjacent to the
building and the related installation reduced the access to the building thereby decreasing the
value of the building.
The company estimated that it can sell the company for 1 million but it has to incur costs
of 50,000. Alternatively, it if continues to use it the present value of the net cash flows the
building will help in generating is 1.2 million.The basic rule is to recognize impairment if
carrying amount exceeds the recoverable amount.
First, it is necessary to determine the carrying amount. The building has a cost of 2
million, useful life of 20 years and is used for 5 years so far. This means that accumulated
depreciation is 2/20*5 or 0.5 million. Carrying amount is 2 million minus 0.5 million or 1.5
million.
Second, it is necessary to determine the recoverable amount. Recoverable amount is the
higher of fair value less costs to sell and value in use. Fair value less costs to sell in this
scenario is 1 million minus 0.05 million or 0.95 million. Value in use is the present value of
future cash flows which amounts to 1.2 million. Recoverable amount is the higher of 0.95
million and 1.2 million.
Impairment Loss 300,000
Accumulated Impairment Losses 300,000
12
In the next year, the government constructed a service road parallel to the high way which
improved the recoverable amount to 1.4 million. Depreciation for this year is 0.12 million.
Carrying amount as at the end of the year is 1.2 million minus 0.12 million or 1.08 million.
The recoverable amount is 1.4 million which shows that the building has to be appreciated by
0.32 million. 0.3 of this amount is to be credited to income statement (because the original
impairment loss routed through income statement was 0.3 million). The additional 0.02
million will be credited to revaluation reserve.
Accumulated Impairment Losses 300,000
Building 20,000
Gain in Value of Building 300,000
Revaluation Surplus 20,000
9. Disclosure of Impairment
PSAK 48 paragraph 126-136 requires more extensive disclosures.
Extensive disclosures includes :
a. Every CGU (or groups of CGUs) containing goodwill or intangible asset with unlimited
lifetime should including:
1) Main assumption and management approach used to measured recoverable amount.
2) Period where managment has projecting cash flow, growth rate, and discount level.
b. The recoverable amount of asset (CGU) and weather recoverable amount of asset (CGU)
is fair value less cost of disposal or value in use.
c. If the recoverable amount is fair value less cost of disposal, entity should disclose the
information of:
1) Hierarchy level based on PSAK 68
2) Appraisal technique description (level 2 and 3)
3) Main assumption (level 2 and 3)
d. If the recoverable amount is fair value less cost of disposal discloses the explanation of
management approach, hierarchy level dan the reason of change in appraisal method.
12. Impairment versus Revaluation
a. Definition
Impairment of a fixed asset occurs when the realizable value of an asset, as shown in the
balance sheet, exceeds its actual value (fair value) to the company. When impairment
occurs, the entity must decrease its value in the balance sheet and recognize a loss in the
income statement.
Revaluation of a company's assets takes into account inflation or changes in fair value
since the assets were purchased or acquired. There must be persuasive evidence to
revalue. The change in value is credited to the revaluation surplus (reserve) account. A
downward revaluation is considered impairment.
b. Review
An impairment, on the other hand, only refers to one of the two; a fall in the market value
which is then written down.
Revaluation can be made upward (to increase the value of the asset to market value) or
downward (to decrease the value).
13
c. Timing
Impairment is when an asset has indications that its carrying value may be in excess of its
recoverable amount.
Revaluation loss tends to happen when the company revalues its assets each year and,
this year, the revalued amount is lower than revalued carrying amount brought forward
less this years depreciation on that brought forward figure.
d. Recognition
Impairment is something which MUST be done where there are indications that an asset
is impaired.
Revaluations tend to be because the company has adopted the fair value model of
accounting for its assets but it is not a requirement in other circumstances
e. Conclusion
An asset that loses its value and needs to be written down is referred to as an impaired
asset.
Revaluation is a technique where an assets recorded value (historical cost value in the
ledger) will be adjusted to the market value.
C. CRITICAL POINT
In our group opinion, PSAK 48 has some weaknesses in reability. To determine the
recoverable value, management will compare which one is higher between fair value less cost to
disposal and value in use from an asset. There is no problem in determining fair value less cost to
disposal because we can get the value in active market. In other side, management should count
the cashflow discount from the time use remains of the asset to determine the value in use.
In the standard, determining of value in use is set as follows:
projections of cash inflows from the continuing use of the asset;
projections of cash outflows that are necessarily incurred to generate the cash inflows
from continuing use of the asset (including cash outflows to prepare the asset for use) and
can be directly attributed, or allocated on a reasonable and consistent basis, to the asset;
and
net cash flows, if any, to be received (or paid) for the disposal of the asset at the end of its
useful life.
Although the determination of the estimated cash flow is set up, according to our group
management still has great authority in determining the value in use, it is feared will be a
management tool to measure not the actual conditions.
Measurement of the value in use not the actual conditions done management to avoid high
impairment loss that makes the value of the company is reduced.
D. CONCLUSION
1. PSAK 48 adopts all standard of IAS 36, except agricultural assets carried at fair value (IAS
41) and rule of effective date, transition period, and early applying option, and appendix B of
IAS 36.
2. Impairment occured when internal or external indications is present, and after impairment test
shows that carrying amount of the asset exceeds recoverable amount.
The External sources of information are:
14
during the period, an assets market value has declined significantly more than would be
expected as a result of the passage of time or normal use.

significant changes with an adverse effect on the entity have taken place during the period,
or will take place in the near future, in the technological, market, economic or legal
environment in which the entity operates or in the market to which an asset is dedicated.
market interest rates or other market rates of return on investments have increased during
the period, and those increases are likely to affect the discount rate used in calculating an
assets value in use and decrease the assets recoverable amount materially.
the carrying amount of the net assets of the entity is more than its market capitalisation.
And The Internal sources of information are:
evidence is available of obsolescence or physical damage of an asset.

(significant changes with an adverse effect on the entity have taken place during the
period, or are expected to take place in the near future, in the extent to which, or manner in
which, an asset is used or is expected to be used. These changes include the asset
becoming idle, plans to discontinue or restructure the operation to which an asset belongs,
plans to dispose of an asset before the previously expected date, and reassessing the useful
life of an asset as finite rather than indefinite.*

evidence is available from internal reporting that indicates that the economic performance
of an asset is, or will be, worse than expected.

3. PSAK 48 accounted an impairment if carrying amount exceeds recoverable amount after
shows the indications of impairment and impairment test has been applied.
4. PSAK 48 specifies to ensure that assets are carried at no more than their recoverable amount,
and to define how recoverable amount is determined. PSAK 48 arrange standar of
recognition, measurement, reversal, and disclosure of impairment.
5. Impairment and revaluation model can be compared by theirdefinition, review, timing,
recognition, and conclution.
E. REFERENCE
_____________. 2011. International Accounting Standard 36 : Impairment
_____________. 2013. Pernyataan Standar Akuntansi Keuangan 48 : Penurunan Nilai
Ankarath, Nandakumar, et al. 2010. Undestanding IFRS Fundamental: International Financial
Reporting Standard. Hoboken New Jearsey. John Wiley & Sons, Inc
Bobian, Nicolae, Diana Dumitrescu, and Carmen Costuleanu. 2013. The Differences Between
Revaluation And Assets Impairment. West University Of Timisoara
Dick, Wolfgang and Frank Missonier-Pierra. 2010. Financial Reporting Under IFRS. Soutern
Gate, Chichester United Kingdom. John Wiley & Sons, Ltd
http://www.accountingtools.com/impairment-loss-accounting
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Psak 48 (2013) Impairment: Table of Content

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PSAK 48 (2013) IMPAIRMENT

Keyword: impairment, impairment lost, PSAK 48, IAS 36, revaluation

3. Purpose of The Paper

5. The Differences Between PSAK 48 and IAS 36 5

d. Fair Value less Cost to Sell 5

Cash Gerenating Unit (CGU)

a. Identifying Assets that May Be Impaired

c. Recognition of an Individual Asset 7

a. Measurement of an Individual Asset 8

9. Reversing of Impairment Loss 13

11. Impairment versus Revaluation 14

What is the impairment?

3. Purpose of The Paper

Exposure Draft E55 Impairment of Assets

Amended by Annual Improvements to IFRSs 2007

Operative for financial statements

PSAK 48 (Revisi 2009)

4. Impairment Related on The Conceptual Framework

asset or cash-generating unit.7

3PSAK 48 (2013), paragraph 06

6PSAK 48 (2013), paragraph 06

1) there is an observationed indication that an assets market value has declined

An impairment loss on a non-revalued asset is recognised in profit or loss. However, an

a) projections of cash inflows from the continuing use of the asset;

Source: BDO International

(higher than value in use)

b) not be larger than an operating segment as defined by paragraph 5 of IFRS 8

24PSAK 48 (2013), paragraph 80

In allocating an impairment loss, the carrying amount of an asset should not be

8.Reversing an Impairment Loss

expected as a result of the passage of time or normal use.

And The Internal sources of information are:

evidence is available of obsolescence or physical damage of an asset.

life of an asset as finite rather than indefinite.*

of an asset is, or will be, worse than expected.

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