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IAS 36 Discussion, Advantages and disadvantages
The endless globalization is enormously seen in our age, and its impact has extended to increase the money related markets. Obviously, the IAS36 has assumed an essential part in accomplishing worldwide money related market reconciliation, other than applying it has brought about agreeing on accounting all over the globe. These accounting principles have turned out to be all inclusive acknowledged and perceived, which is very gainful for the investors. Applied by The International Accounting Standards Board, that have prompted creating and keeping up the IAS36 which means that it has underpins the age of reasonable and brilliant budgetary explanations. The control of monetary announcing principles overall upgrades the straightforwardness of money related articulations. Why? Well because of it being all around acknowledged and distinguished, these norms advance the similarity of the monetary explanations over universal markets. Previously, universally, speculators experienced paying heaps of expenses to the examiners with a specific end goal to help them in investigating the budgetary proclamations. On the off chance that financial specialists did not approach experts for help, the variety in bookkeeping norms may have driven them off track and brought about clumsy hazard administration. Unexpectedly, the IFRS as of now gives speculators amazing principles which empower speculators to break down the monetary reports of a few organizations independent from anyone else and spare the charges paid to the budgetary experts.

It satisfies the constant need of financial specialists for finding auspicious, tried and true, and similar data. Effectively, understanding money related proclamations empower the speculators to reveal insight into the qualities and shortcomings of all organizations that they are worried about. The IFRS make it feasible for little speculators to comprehend and understand the status of different organizations, which certainly improves the experience of those financial specialists beginning to partake in the market field. Moreover, the IAS36 takes out the dangers confronting the speculators with little experience and information. Subsequently, both unpracticed speculators and experienced speculators have similarly reasonable chances to comprehend the budgetary reports or explanations. Essentially, the IFRS deletes the requirement for having money related investigators whose business cost a ton of costs before. Most likely, speculators can assimilate the money related proclamations considerably more effectively than before because of applying of it can make the dialect of business sound more coherent. Subsequently, speculators are equipped for understanding the money related proclamation of various organizations at both neighborhood and outside levels. For whatever length of time that speculators have an amazing summon of understanding the monetary proclamations, they will never again require any additional sources and references to examine and comprehend the money related explanations. Reasonably, those extra sources are boisterous in light of the fact that they are in various dialects that won’t not be justifiable, additionally they are confounding. The IFRS is a dependable source that speculators and leaders look for keeping in mind the end goal to take the correct choices with respect to the conceivable future venture. Likewise, these gauges enable them to take flawless financial choices.

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Advantages of IAS 36 Impairment of Assets

As demonstrated by the impression of accounting experts, its Impairment of Assets is to an awesome degree supportive. For instance, it engages attempts to screen and keep up the advantage of passing on their points of interest. In light of this constant checking, this regard will never go past the recoverable entirety. It is required to complete a shortcoming test to recognize charitableness and particular irrelevant assets each money related year. Moreover, associations and organizations are obliged to lead incapacity tests if there ought to be an event of perceiving shortcoming of leeway. It is basic to coordinate the shortcoming test for an exchange making unit out example of the nonappearance of independent cash inflows rising up out of preference.

One of the challenges happening regarding it is the disclosure of impedance of an advantage. That is the reason components are endorsed to complete an evaluation for perceiving any impedance of advantages when a specifying period closes. Concerning this issue, it is conceivable that its passing on aggregate may go past its recoverable whole. It may fuse indications of block which may be recognized remotely and inside. If preference is exhibited to deterrent, it is immovably endorsed to figure the recoverable total in regards to this profit. Substances which are involved with assessing the recoverable measures of the irrelevant assets do this mission each monetary year. These substances are enthused about finishing this strategy of estimation always. Distinguishably, the estimation of recoverable wholes is a portion of the time an essential progress in the impedance test for preference.

More likely than not the right utilization of obstacle charges empowers the path toward evaluating pioneers’ and boss’ execution. Plainly, wander decisions, which don’t help achieve the concentrated on comes about, happen when assets are formed off or down in light of shortcoming.

Disadvantages of IAS 36 Impairment of Assets

One of the advantages of the IAS 36 gathering is that the boss are displayed to a more correct and thorough cash related clarification information than beforehand. Also, the nearness of the IAS 36 saves the period of the theorists as they don’t need to search for extra sources including information about the cash related decrees and standards for understanding them. Sensibly, searching for additional sources, either online-based or paper-based, is a hot system. Besides, the IFRS gives examiners and speculators sufficient information that supports them fathom the budgetary situation of an association, and they can find the advantages and incidents in detail. On account of enhancing the budgetary and accounting declaring benchmarks, little theorists don’t face issues with understanding the cash related enunciations. Examiners have bore witness to the old enumerating models made the budgetary masters scraped and perplexed on account of the uniqueness and unusualness of such standards which generally drove them off track and made their associations in risk. Surprisingly, the IAS 36 discards the rates of threats that examiners may understanding. Concerning helpful result of the IAS 36 on the association’s activities, this is exceedingly unmistakable by virtue of cross-posting works out. To the extent subsidize, the activity of cross-lifting shares exhibits the probability of including the offers of organization’s an incentive on both fundamental stock exchange and additional stock exchange. At the point when an association shows its adherence to the IAS 36, it grabs an incite underwriting to practice cross-posting works out. Moreover, it is significantly proposed that associations submit to the IFRS remembering the ultimate objective to be fit for cross-posting their securities .

The upsides of IAS 36 Impairment of Assets, experts could recognize a couple of disadvantages. For example, experts may now and again disregard to see the measure of huge worth, and this is to an incredible degree authentic as the measure of noteworthy worth is a basic essential for evaluating crippling. Another weight is the inadequacy of tenets which should help measure the handicap of advantages. Moreover, it is faulty when shortcoming could be perceived. Another obstacle is the nonappearance of clear productive approaches to manage evaluating and revealing weakening. At the point when all is said in done, a couple of customers have remarked that the idea of accounting information improves, everything considered, in conjunction with the nearness of impedance of preferences.

In the light of the IAS 36, the flood of cross-periphery theories is ordered and bolstered. The benefits dependence triggers the prerequisite for accepting the IAS 36. Various budgetary pros empower the countries encountering privatization to get the IAS 36 in light of the way that it grows the benefit organization. Also, the adequacy and straightforwardness in the market have scaled up.

The associations in both made and making countries and nations use the IAS 36. This mirrors the strong trust in its high ampleness and its unprecedented hugeness in boosting the idea of cash related clarification information and itemizing. Incredibly, the accounting information issued in consistence with the IAS 36is considered impeccable and commensurate. Associations of all levels are in unpleasant need of the IFRS remembering the true objective to have the ability to set up their own particular cash related declarations that could be possible to all theorists, controllers, and boss all through the world. Exactly when the associations are more devoted to the IAS 36, couple of differentiations are seen between the fiscal itemizing structures. In reality, a couple of associations have rejected the whole idea of IAS 36.

Over the span of the latest couple of years, Malaysia has ended up being a champion among the most basic countries that are focused on making International Financial Reporting Standards and obviously consenting to them exhaustively. To the extent the law, the Malaysian associations are summoned to prepare budgetary declarations according to the all around recognized accounting models that the Malaysian Accounting Standards Board has issued. The remote organizations in Malaysia and recorded on the Malaysian stock exchange showcase should set up the cash related detail.

It is important that people in charge of getting and applying the IFRS should think about the inconveniences they may encounter them in the principal go through assignment, so they should be particularly orchestrated and adequately experienced going before the determination of the IFRS in order to dodge deadly stumbles. In light of the past purposes of intrigue, various countries tend to grasp the IAS 36 assuming that it is a snippet of data to creating and strengthening the possibility of resemblance among whatever number countries as could sensibly be normal.

Annual Reports Analysis of the Listed Companies
Warba Insurance Company
Warba Insurance Company is a Kuwaiti company that is concerned with registering its assets according to applying the cost concept, the net realizable value and the fair value of the market. Equipment, plant and property are the major components of the assets of the bank. This Warba Insurance Company registers its assets in the yearly report 2016 according to the IAS No.36. Furthermore, registering the property, intangibles, plant & equipment, as well as the investments of long term relies on applying the historical value. The Warba Insurance Company also applies the net realizable value and the cost concept application. The Warba Insurance Company is represented in a hierarchy which is divided into three levels (1st, 2nd and 3rdlevels). The Warba Insurance Company can move from one level to another and it relies on reevaluating its categorization according to the end of the reporting period. This is according to the lowest degree which helps measuring the 3 levels fair value which in turn enables the bank to take the accurate decision. This also can disclose the fair value based on the evaluation process. In addition, the company also utilizes the recurring basis in case of dealing with assets and liabilities. For the 1st level; the Warba Insurance Company is concerned with the offered prices of the markets. For the 2nd level; the Warba Insurance Company depends on the fair value that is recorded. As for the 3rd level; the bank uses the inputs which impact on the fair value that is recorded. In addition, the Warba Insurance Company applies the cost method because it relies on impairment. The Warba Insurance Company reduces the impairment every year. It makes impairment to the assets. It reevaluates its assets according to the reevaluation principles of the useful life.

ABK Bank
ABK is a Kuwaiti bank that sees that the book value is helpful. The value of the bank cannot be evaluated. The bank has many methods to measure the value of the market and this enables the bank to evaluate its assets. For instance, the bank relies on the market value “the existing shares value as well as the value of the shares in the bank”. It accounts its assets value in case of investing in them or selling them in order to obtain the value of what it gets. In addition, the bank utilizes multiples which applied to the whole industry in order to identify the value of the market. It carries out the recording process according to the cost concept application, the net realizable value, and the fair value of the market. Here, we can see that property, plant & equipment are the main component. The ABK relies on three levels organized in hierarchy; the first level, the second level and the third level. Regarding the first level, we can find that the bank is concerned with the quoted prices of the markets. Regarding the second level, we can see that the bank relies on the registered fair value. Regarding the third level, the bank depends on the utilization of the inputs that affects the fair value that is registered. The Warba Insurance Company can change from one level to the other through relying on the re-assessing categorization and relying on the lowest inputs level which help the bank to measure the fair value of the hierarchy level. This can help the company to make the right decisions. Therefore, the company will be able to disclose the fair value depending on the assessment process. The bank decreases its assets value. In addition, the bank implements the cost approach due to the dependence on the impairment. Furthermore, we can find that the bank decreases the impairment on a yearly basis. The company uses the recurring basis if the bank deals with assets and liability. The company conducts the revaluation process of the assets depending on the revaluation of the principles of the useful life. The company relies on the depreciation way. The company relies on the historical value in its investments of long term. We can see that the bank utilizes the International Financial Reporting Standards number 36 during registering the intangibles, plant and equipment, and property. In addition, the bank depends on the consumption that is measured through the straight–line method.
KFH
KFH is found in the state of Kuwait. This bank considers registering the assets depending on the fair value of the market, the net realizable valuein addition to the application of cost concept. This bank depends on the international financial reporting standards 36 to record the assets. Here, one can observe that the central elements of the assets of the bank are plan, equipment as well as property. Registering such matters is based on the historical value. If the bank deals with liability and asset, it utilizes the recurring basis. Furthermore, it is clear that the net realizable value and the application of cost concept are implemented in this bank. This bank reduces the impairment every year. It also reduces the value of its assets. The bank carries out the revaluation process of the assets depending on the revaluation of the principles of the useful life. In addition, the KFH adopts the cost approach because it is based on the impairment. The bank is represented in a hierarchy with three levels; level 1, level 2, and level 3. The bank can transfer from one level to another and it relies on reevaluating its categorization according to the end of the reporting period. Such matter is according to the lowest degree which helps measuring the 3 levels fair value which in turn enables the bank to take the right decision. So, the bank will have the ability to disclose the fair value depending on the assessment process. To speak about the level 1; one can observe that the bank is concerned with the active markets offered price. As for the level 2; the bank relies on the registered fair value. Finally, the level 3; we can see that the bank uses the inputs that affect the registered fair value.
Sokouk Holding Co
Sokouk Holding Co. is a Kuwaiti company. Equipment, plant and property are the central elements of the assets of the company. During registering the assets in the yearly reports, we observe that Sokouk Holding Co. adopts the international financial reporting standards 36. The Sokouk Holding Co. adopts net realizable value as well as the cost concept application. Sokouk Holding Co. takes into regard the assets registration depending on the cost concept application, the net realizable value, and the fair value of the market. It is clear that the historical value is the approach utilized by the company for registering different matters including the property, the intangibles, and the investments of long term, equipment and plant. This Sokouk Holding Co. has a hierarchy of three levels. The Sokouk Holding Co. can transfer from one level to the other levels and it relies on reevaluating its categorization according to the end of the reporting period. This matter is according to the lowest degree which helps measuring the three levels fair value which helps the bank in the process of taking decision. Such matter also enables the bank to know the fair value depending on the assessment method.
Agility Public Warehousing Company – Agility
Agility Public Warehousing Company is a Kuwaiti corporation. This corporation relies on the accumulated impairment and consumption. Such matter indicates to the significant variation between the asset carrying amount and the total amount. The corporation relies on the equipment as well as property mentioned in the expenses less the cumulative impairment. Furthermore, such matter depends on the losses of depreciation. The expenses of the corporation involve the related expenses of the assets to the work environment for its targeted usage, and the price of buying. This corporation applies the concept of expense, the realizable net value as well as the fair value of the market in case of registering the corporation assets. It is registration process of the yearly statement of 2015 is carried out according to the international standards of the financial reporting. The basic elements of the corporation assets are plant, property and equipment. In addition, the corporation adopts the realizable net value as well as the concept of expense. It is clear that the corporation uses the historical value approach in order to register the property, investments, equipment, intangibles and plants. There are three levels for the corporation represented in a hierarchy; the first level, the second level and of course the third level. Here, it is possible for the corporation to move between the different levels through relying on reevaluation categorization, the inputs lowest degree and the end of the statement time. As a result of this, the Agility Public Warehousing Company will be able to apply the evaluation process in order to show the fair value. Moreover, the Agility Public Warehousing Company is interested in the application of the value of the 3 levels. Such levels will be showed and this will make it easy for the managers to make the right choices.
ALAFCO Aviation Lease And Finance – ALAFCO
Among the most significant corporation in Kuwait is ALAFCO Aviation Lease and Finance – ALAFCO. The central factors of this corporation are plant, property and equipment. The corporation relies on three levels; level 1, level 2. And level 3. Here it is obvious that the corporation can shift from one of these levels into another. This matter is because of the reappraisal of the categorization relying on the end of the time of reporting. This matter relies on the inputs lowest level that assists the corporation to estimate the fair value of the hierarchy three levels. This matter enables the bank to utilize the evaluation process in order to make a disclosure of the fair value. Consequently, the bank will be able to make the most difficult choices and decisions. In addition, the corporation implements the recurring basis in case of dealing with asset and liability. Moreover, The Corporation takes into account registering the assets according to various approaches; the concept of expense, the realizable net value and the market fair value. The process of registration is conducted through applying the historical value. Furthermore, the process of registration is conducted according to the international financial reporting standards number 36. The corporation notably implements the concept of expense and the net value too.
Oula Fuel Marketing Company
The Oula Fuel Marketing Corporation is among the important Kuwaiti corporations. Based on the yearly report of the corporation, the changes conducted to the international accounting standards number 16 and 38 are connected with the principles of international accounting standard number 16 and 38 where the returns represent the patterns of the economic profits. The corporation implements net value in addition to the concept of expense. Here, it is clear that the corporation does not rely on the approaches that are based on the returns for the impairment of the equipment, property and plant. In fact, we see that the corporation relies on it under limited conditions in case of determining to consume the intangibles. In addition, the corporation applies the historical value during carrying out its registration process. The registration of the assets in the yearly statement of 2015 was conducted in accordance with the international standards of the financial reporting number 36. Here, the central elements of the assets of the corporation are: plant, equipment as well as property.
Livestock Transport and Trading Company
Livestock Transport and Trading Company is considered among the significant Kuwaiti companies. It clearly adopts the expense concept as well as the net worth. The equipment and properties of the company are mentioned at expense less accumulative consumption and the losses of impairment. The Livestock Transport and Trading Company is interested in the historical value approach and it adopts it in the registration process of the intangibles, equipment, investments of long term and property. The Livestock Transport and Trading Company relies on the consumption of all freehold lands (are mentioned at expense less consumption losses), buildings, and equipment. Such matter relies on the measured rate to write off the expense of every asset according to the basis of straight line to the remaining values over the expected useful life. The yearly statement of 2015 of the bank was set according to the IFRS No.36. The basic assets factors are equipment, property, in addition to the plant.
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Works Cited
ABK. (2016). Annual Report 2016. Retrieved July 13, 2018, from https://abk.eahli.com/abk/pdfs/ABK_Annual_Report_2016_en.pdf
Agility Public Warehousing Company . (2016). Agility Public Warehousing Company . Retrieved July 12, 2018, from https://www.agility.com/wp-content/uploads/2017/09/Agility_Annual_Report_2016-English.pdf
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KFH. (2016). KFH Annual Report 2016. Retrieved July 13, 2018, from https://www.kfh.com/en/reports/Annual-Reports/Annual-Report-2016/document_en/English.pdf.pdf
Livestock Transport and Trading Company . (2015). Livestock Transport and Trading Company . Retrieved July 13, 2018, from http://www.almawashi.com.kw/images/uploads/files/annual_report_en_2013_864.pdf
Lotorev, N. (2013). ANALYSIS OF IMPLEMENTATION OF IFRS 3 AND IAS 36 BY LISTED COMPANIES ON THE NASDAQ TALLINN STOCK EXCHANGE. 36-60.
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Sebastian, E. G. (2013). Relevance and credibility of the fair value measurement during the crisis. 21-36.
Sedki, S. (2014). Differences and Similarities Between IFRS and GAAP on Inventory, Revenue Recognition and Consolidated Financial Statements. Journal of Accounting and Finance , 14 (2).
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Warba Insurance Company. (2012). Warba Insurance Company. Retrieved July 12, 2018, from https://warba.insure/wp-content/uploads/2016/04/SITScanner16042713140.pdf

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