Impairment Testing

ASSET:
DIVISION REAL ESTATE
COMPANY
Balance Sheet date: 31 DECEMBER 2011


SECTION 1
1.- Are there any external sources of information that the asset may be impaired? YES /NO

- Significant decline in market value NO
- Significant changes technical, market economic, legal situation NO
- Increase of interest rates that may affect discount rate and NPVNO
- Others NO

2.- Are there any internal sources of information that the asset may be impaired?

- Obsolescence or physical damage NO
- Changes in Operations,restructuring, ending operations NO
- Internal reporting shows results more than expected NO
o Original cost higher than budgeted NO
o Maintenance cost higher than budgeted NO
o Netcash flow / operating profit worse than budgeted NO
o Significant decline in net cash flows / operating profit NO
o Current plus budget shows nets cash outflow / operating loss NO
oOther NO
Based upon your answers there is no evidence of impairment go to question 4



ASSET:
DIVISION REAL ESTATE
COMPANY
Balance Sheet date: 31 DECEMBER 2011





3. -Can recoverable amount be estimated for the individual asset? YES
Question 3 is not applicable to you , please go to question 4

4. - Has impairment been recognized for the asset previously? YESCarry out review to see if impairment has reversed. Go to question 5
5. – Are there any external sources of information that impairment may be reversed?
- Significant increase in market valueNO
- Significant changes technical, market economic, legal situation NO
- Decrease of interest rates that may affect discount rate and NPV NO
- Others NO
6. - Are there any internal sources ofinformation that impairment may be reversed?
- Changes in Operations, restructuring, ending operations NO
- Internal reporting shows economic performance better than expected NO
o Original...