The African Association of Accountants General (AAAG) has released its Application Guidance on IPSAS 21: Impairment of Non-Cash-Generating Assets. Developed for public sector entities and practitioners in AAAG member countries, the guidance translates the requirements of IPSAS 21 into practical, working-level procedures without losing the core requirements of the Standard.
It helps entities determine whether an asset falls within the scope of IPSAS 21, identify impairment indicators, assess when detailed testing is required, measure recoverable service amount, and appropriately recognise, reverse, present and disclose impairment losses.
The guidance is particularly relevant to the public assets that underpin service delivery, including infrastructure, government buildings, roads, schools, clinics, equipment and other assets held primarily for their service potential rather than commercial return.
It brings together decision frameworks, practical measurement approaches such as depreciated replacement cost, restoration cost and service units, illustrative accounting entries, worked examples, disclosure guidance, audit documentation and a year-end implementation checklist.
By providing a consistent reference for impairment reviews and accounting judgements, the guidance is intended to support more reliable financial reporting and stronger stewardship of public assets across member countries.