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Published date: 26 November 2024

Indicators of impairment - The impact of climate-related matters on impairment testing of non-current assets

IAS 36 Impairment of Assets requires a company to assess at each reporting date whether there is any indication that an asset or cash-generating unit (CGU) may be impaired. The accounting standard also contains a non-exhaustive list of internal, external and other indicators of impairment. [IAS 36.9, 12–13] 

Although climate-related factors, such as those in the diagram below, are not mentioned explicitly in IAS 36, they could lead to one or more of the internal or external indicators of impairment listed in the accounting standard.

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