These Application Guidances provide practical accounting guidance for the impairment of non-cash-generating assets. They are designed to assist public sector entities to apply IPSAS 21 in a simplified and consistent manner without losing the core accounting requirements of the Standard.
This guidance translates IPSAS 21 into practical public sector accounting guidance. It explains IPSAS 21 in clear professional accounting language for the public sector. They guide entities on how to identify non-cash-generating assets, assess indicators of impairment, measure recoverable service amount, recognize impairment losses, reverse impairment losses where appropriate, present impairment effects and prepare disclosures supported by practical decision points, accounting entries and illustrative examples.
