Ind AS 36 “Impairment of Assets” deals with the testing of assets for impairment. It requires companies to evaluate their assets, including goodwill, to assess if there is any impairment in their value. If there is a significant decline in the recoverable amount of an asset, then it needs to be written down to its recoverable amount. The standard also requires disclosure of the key assumptions and estimates used in the impairment test.
Ind AS 38 “Intangible Assets” deals with accounting for intangible assets. It defines intangible assets as identifiable non-monetary assets without physical substance, which can be measured reliably. The standard requires companies to recognize intangible assets in their financial statements only if it is probable that future economic benefits will flow to the entity and the cost of the asset can be measured reliably. Intangible assets should be measured initially at cost and subsequently, either at cost or after adjusting for amortization or impairment. The standard also requires disclosure of information about significant intangible assets and any related impairment losses.
