in IAS 36 - Impairment of Assets by
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What is the difference between impairment & amortization? Are they same?
by Level 1 Member (1.0k points)
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by Level 5 Member (29.1k points)
As per IAS 36, impairment is the amount by which its carrying amount exceeds its recoverable amount.
-Carrying amount: the amount at which an asset is recognised in the balance sheet after deducting accumulated depreciation and accumulated impairment losses
-Recoverable amount: the higher of an asset's fair value less costs to sell (sometimes called *** selling price) and its value in use

Amortization mean the systematic allocation of an asset to the the income statement on the use of that asset. Amortization is similar to depreciation but the term amortization is used with regard to intangible assets.

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