📖 长期资产：减值与处置

Financial Statement Analysis

I. Lesson Focus

This lesson examines the impairment of long-lived tangible assets and their subsequent derecognition or disposal under both IFRS and US GAAP. Candidates must master the impairment testing process, calculation of impairment losses, reversal rules (available only under IFRS), accounting for assets held for sale, and the gain/loss on disposal. The focus is on the differing rules between IFRS (IAS 36 and IFRS 5) and US GAAP (ASC 360), their impact on financial statements, and the analytical implications for ratios and earnings quality.

II. The Problem

A manufacturing company discovers at year-end that one production line has become technologically obsolete and its expected future cash flows have declined sharply, causing its carrying amount to exceed recoverable value. At the same time, management plans to sell another idle machine in the near future. Both events affect current-period net income, total assets, and key ratios such as ROA and asset turnover. CFA exams frequently test candidates’ ability to identify impairment indicators, compute impairment losses, handle reversals under IFRS, distinguish between abandonment and sale accounting, and analyze the effect on financial statements. This lesson systematically addresses these critical issues in the subsequent measurement of long-lived assets.

III. Impairment Accounting Framework for Long-Lived Assets

After initial recognition, property, plant, and equipment (PPE) must be tested for impairment whenever impairment indicators exist. The core comparison is between the asset’s carrying amount and its recoverable amount.

• Carrying amount = Historical cost − Accumulated depreciation − Accumulated impairment losses
• Recoverable amount = Higher of:
• Fair value less costs of disposal (FVLCD)
• Value in use (VIU) — present value of expected future cash flows

IFRS (IAS 36) uses a one-step approach: if carrying amount > recoverable amount, an impairment loss is recognized immediately.
US GAAP uses a two-step process:
1. Compare carrying amount with the sum of undiscounted future cash flows. If carrying amount > undiscounted cash flows, proceed to step 2.
2. Impairment loss = Carrying amount − Fair value.

Impairment loss is recognized in profit or loss and reduces the asset’s carrying amount. Future depreciation is then calculated using the new, lower carrying amount and the revised remaining useful life.

IV. Subsequent Treatment and Reversal of Impairment Losses

• Under US GAAP, previously recognized impairment losses cannot be reversed. The new carrying amount becomes the revised cost basis for future depreciation.
• Under IFRS, if impairment indicators later reverse and recoverable amount increases, an impairment reversal is permitted. However, the reversal cannot increase the carrying amount above what it would have been had no impairment originally occurred (i.e., the historical depreciation trajectory). The reversal is recognized in profit or loss (or in OCI if the asset is carried under the revaluation model).

This difference makes asset values more volatile under IFRS and more conservative under US GAAP.

V. Derecognition and Disposal of Long-Lived Assets

An asset is derecognized when it is disposed of, abandoned, or no longer expected to generate economic benefits.

1. Sale:
2. Gain or loss on disposal = Net proceeds − Carrying amount

3. Net proceeds = Selling price − Costs to sell

4. Abandonment:

5. If no proceeds or residual value, the entire carrying amount is recognized as a loss.

6. Assets Held for Sale (IFRS 5 / ASC 360):

7. Depreciation ceases once the held-for-sale criteria are met.
8. The asset is measured at the lower of carrying amount and fair value less costs to sell.
9. It is reclassified as a current asset and presented separately.

VI. Financial Statement and Ratio Impact of Impairment and Disposal

• Period of impairment: Assets and net income decrease → ROA falls, asset turnover rises (smaller denominator).
• Subsequent periods: Lower depreciation expense due to the reduced carrying amount tends to increase future net income.
• Profitable sale: May create a one-time boost to earnings; analysts should assess whether management delayed impairment.
• Loss on sale: May indicate prior overstatement of asset values or delayed impairment recognition.

Analysts must scrutinize the reasonableness of impairment assumptions (discount rates, growth rates), which are common tools for earnings management.

Worked Cases

Case 1: IFRS Impairment Test and Subsequent Reversal

A machine has a carrying amount of 800,000 at 31 Dec 2023 and a remaining useful life of 4 years with zero residual value. Impairment indicators exist: - FVLCD = 650,000 - Value in use = 720,000

Recoverable amount = max(650,000, 720,000) = 720,000
Impairment loss = 800,000 − 720,000 = 80,000
New carrying amount = 720,000.

At the end of 2024 the recoverable amount rises to 780,000. Had no impairment occurred, the carrying amount at end-2024 would be 800,000 × (3/4) = 600,000 (straight-line).
Maximum reversal limited to the amount that restores the asset to the no-impairment trajectory: 600,000 − (720,000 × 3/4) = 600,000 − 540,000 = 60,000.
A reversal gain of 60,000 is recognized in 2024 profit or loss.

Case 2: US GAAP Two-Step Impairment Test

Using the same facts: carrying amount = 800,000, undiscounted future cash flows = 750,000, fair value = 680,000.

Step 1: 800,000 > 750,000 → impairment test triggered.
Step 2: Impairment loss = 800,000 − 680,000 = 120,000.
New carrying amount = 680,000; no future reversal permitted under US GAAP.

Case 3: Disposal and Held-for-Sale Accounting

An asset with carrying amount 150,000 meets the criteria for held for sale. Fair value less costs to sell = 135,000.
Depreciation stops; the asset is written down to 135,000, producing a 15,000 impairment loss, and is reclassified as a current asset.
Three months later it is sold for 140,000, generating a disposal gain of 5,000 (140,000 − 135,000).

Traps

Key Formulas

• Impairment loss (IFRS) = Carrying amount − Recoverable amount
• Recoverable amount = max(Fair value less costs of disposal, Value in use)
• US GAAP impairment loss (Step 2) = Carrying amount − Fair value
• Gain/loss on disposal = Net proceeds − Carrying amount
• Reversal cap (IFRS) = Carrying amount had no impairment occurred − Current carrying amount after impairment
• Revised depreciation = (New carrying amount − Revised residual value) / Revised remaining useful life

Practice Questions

Q1. Under IFRS, the recoverable amount of a long-lived asset is:
A. Fair value less costs of disposal
B. Value in use
C. The higher of fair value less costs of disposal and value in use
D. Undiscounted future cash flows

Q2. The first step of the US GAAP long-lived asset impairment test compares:
A. Carrying amount to fair value
B. Carrying amount to the sum of undiscounted future cash flows
C. Carrying amount to recoverable amount
D. Fair value to value in use

Q3. Under IFRS, a previously recognized impairment loss on PPE:
A. Can never be reversed
B. Can be fully reversed to the original carrying amount
C. Can be reversed up to the carrying amount that would have existed had no impairment been recognized
D. Can only be reversed through other comprehensive income

Q4. An asset has a carrying amount of 500,000, a recoverable amount of 420,000, and remaining useful life revised from 5 years to 4 years with zero residual value. Depreciation expense in the following year is:
A. 100,000
B. 105,000
C. 125,000
D. 84,000

Q5. Once an asset is classified as held for sale, the correct accounting treatment is to:
A. Continue depreciating using the original method
B. Stop depreciation and measure at the lower of carrying amount and fair value less costs to sell
C. Immediately expense the entire carrying amount
D. Recognize gain or loss only upon actual sale

Q6. An asset originally cost 1,000,000, has accumulated depreciation of 300,000 and accumulated impairment of 50,000. It is sold for 600,000 cash with 20,000 selling costs. The gain or loss on disposal is:
A. Loss of 70,000
B. Gain of 20,000
C. Loss of 30,000
D. Gain of 50,000

Q7. Which of the following is least likely to trigger an impairment test for long-lived assets?
A. A significant increase in market interest rates
B. Physical damage to the asset
C. A large increase in the company’s current-period net profit
D. Technological obsolescence causing expected cash flows to decline

Q8. Compared with US GAAP, a primary advantage of IFRS for long-lived asset impairment is that IFRS:
A. Is more conservative because reversals are prohibited
B. Better reflects the current economic value of the asset
C. Requires simpler calculations
D. Does not require estimation of future cash flows

Answers

Takeaways

• IFRS uses a single recoverable-amount test; US GAAP uses a two-step test with undiscounted cash flows as the first gate.
• IFRS permits impairment reversals (capped at the no-impairment carrying amount); US GAAP prohibits reversals.
• After impairment, depreciation must be recalculated using the new lower carrying amount and revised estimates.
• Assets classified as held for sale immediately stop depreciating and are measured at the lower of carrying amount and FVLCD.
• Gain or loss on disposal equals net proceeds minus carrying amount; abandonment generally results in a full loss.
• Impairment reduces current profit and assets but can inflate future profit through lower depreciation; analysts must watch for earnings-management opportunities.