According to IAs 36- An entity is required to assess that are there any indications that an asset may get impaired. There are two types of indications
1 External source:
This source of indication includes:
A) Decline in market value;
B) Unfavorable changes in technology, economy, and market.
C) Change in interest rates
2: Internal sources
This source of indication includes
a) Physical damage or obsolescence
b) Assets become idle, or held for disposal
c) For investment in joint venture, subsidiaries. The carrying amount is higher than the carrying amount of the investees’ assets.