TUTORIAL SHEET (IAS 36: Impairment of Assets) 1. The following information relates to three assets: (i) What is the recoverable amount of each asset? (ii) Calculate the impairment for each of the asset 2. A company owns a car that was involved in an accident at the year end. It is barely useable, so the value in use is estimated at $1,000. However, the car is a classic and there is a demand for the parts. This results in a fair value less costs to sell of $3,000. The opening carrying value was $8,000 and the car was estimated to have a life of eight years from the start of the year. Required: Identify the recoverable amount of the car and any impairment required. 3. An entity owns a property which was originally purchased for $300,000. The property has been revalued to $500,000 with the revaluation of $200,000 being recognized as other comprehensive income and recorded as revaluation reserve. The property has a current carrying value of $460,000 but the recoverable amount of the property has just been estimated at only $200,000. Required: What is the amount of impairment and how should this be treated in the financial statements