BCZ98 Some argue that an impairment loss should be recognised only if it is considered probable that the carrying amount of an asset cannot be fully recovered. Proponents of a ‘probability’ criterion are divided between:
(a) those who support the use of a recognition trigger based on the sum of the future cash flows (undiscounted and without allocation of interest costs) as a practical approach to implementing the ‘probability’ criterion; and
(b) those who support reflecting the requirements in IAS 10 (reformatted 1994) Contingencies and Events Occurring After the Balance Sheet Date. [The requirements relating to contingencies in the 1994 version of IAS 10 were replaced in 1998 with the requirements in IAS 37 Provisions, Contingent Liabilities and Contingent Assets.]
Sum of undiscounted future cash flows (without interest costs)
BCZ99 Some national standard‑setters use the ‘probability’ criterion as a basis for recognition of an impairment loss and require, as a practica
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