IAS 36
Impairment
Calculator
Calculate value in use via discounted cash flow. Compare with fair value less costs of disposal. Determine recoverable amount and any impairment loss. Sensitivity analysis included.
IAS 36 · LIVE
Impairment testing, audit-ready.
Not just calculated.
inputs.conf
dcf.model
README.md
01// engagement— IAS 36.126
02entity_name=
03cgu_name=
04reporting_period=
07// asset— IAS 36.6 · .80-81
08carrying_amount=€
CGU / goodwill allocation — tick any met (IAS 36.80-81):
10
11
12
13
14
16cgu.rationale=
CGU + goodwill allocation rationale (IAS 36.80-81)
18// discount_model— IAS 36.55-57
19pre_tax_discount_rate=%
20terminal_growth_rate=%
21forecast_years=IAS 36.33
Rate derivation factors (IAS 36.55-57 / A17-A21):
23
24
25
26
27
29rate.rationale=
Discount rate derivation · WACC + gross-up (IAS 36.55-57)
32// cash_flows— IAS 36.33-38 · net
33cf_year_1=€
34cf_year_2=€
35cf_year_3=€
36cf_year_4=€
37cf_year_5=€
40// cash_flow_basis— IAS 36.33-38 · forecast rigour
Forecast basis complies with (tick each confirmed):
41
42
43
44
45
46
47
48forecast.rationale=
Cash flow forecast basis (IAS 36.33-38)
52// impairment_indicators— IAS 36.12
External sources
53IAS 36.12(a)
54IAS 36.12(b)
55IAS 36.12(c)
56IAS 36.12(d)
Internal sources
57IAS 36.12(e)
58IAS 36.12(f)
59IAS 36.12(g)
60indicators.narrative=
Impairment indicators · external + internal (IAS 36.12)
64// fvlcd— IAS 36.18-19 · IFRS 13
65fvlcd_mode=
66fvlcd_amount=€
67fair_value_level=
68fvlcd.rationale=
FVLCD · IAS 36.18-19 + IFRS 13 hierarchy
72// prior_year_comparison— year-on-year VIU trend
73prior_year_viu=€
Enter prior year VIU to see year-on-year trend.
Prior year VIU comparison · trend
76// sensitivity_analysis— IAS 36.134(f) · rate × growth
Enter DCF inputs to compute the sensitivity grid.
Sensitivity analysis · rate × growth grid (IAS 36.134(f))
82// risk_warnings— rule engine · ISA 540
Enter DCF inputs to run risk analysis.
Risk warnings · 7-rule engine (ISA 540)
88// disclosure_and_conclusion— IAS 36.126-134
Tick disclosure items addressed in FS note:
89IAS 36.126
90IAS 36.130(a)
91IAS 36.130(b)
92IAS 36.130(c)-(d)
93IAS 36.130(e)
94IAS 36.130(g)
95IAS 36.134(a)
96IAS 36.134(d)(i)-(ii)
97IAS 36.134(d)(iv)
98IAS 36.134(f)
99IAS 36.130(f)
99conclusion.narrative=
Disclosure checklist + conclusion (IAS 36.126-134)
previewias36-wp-cgu-2026.pdf
🔒 LOCKED
IAS 36 working paper preview
Enter carrying amount, discount rate, and cash flows to see your IAS 36 working paper render in real time.
EXPORT (EMAIL TO UNLOCK)
Email unlocks the free download.
No payment required. Unlock above to download the full working paper.
Format
HTML → PDF
Pages
6–10
Price
FREE
or CtrlE
Key terms
Frequently asked questions
What is value in use under IAS 36?
Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. IAS 36.30 requires these cash flows to be discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.
How is the terminal value calculated?
The terminal value captures cash flows beyond the explicit forecast period. This calculator uses the Gordon Growth Model: Terminal Value = CF_n × (1 + g) / (r − g), where CF_n is the final year's cash flow, g is the long-term growth rate, and r is the discount rate. The growth rate must not exceed the long-term average growth rate for the products, industries, or countries in which the entity operates (IAS 36.33).
When is an impairment test required?
IAS 36.9 requires an entity to assess at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, the entity must estimate the recoverable amount. For goodwill and intangible assets with an indefinite useful life, the impairment test is required at least annually, regardless of whether there is any indication of impairment (IAS 36.10).
What is the difference between FVLCD and value in use?
Fair value less costs of disposal (FVLCD) represents what the asset could be sold for in an arm's length transaction, less disposal costs. Value in use represents what the asset is worth to the entity through continued use. The recoverable amount is the higher of the two. If either exceeds carrying amount, there is no impairment — the entity does not need to calculate both if one already exceeds carrying amount (IAS 36.19).
Why is sensitivity analysis important for impairment testing?
IAS 36.134(f) requires disclosure of key assumptions and the approach used to determine values assigned to each key assumption. Sensitivity analysis shows how the impairment conclusion changes under different discount rate and growth rate assumptions. This is critical for audit committees and regulators to assess the robustness of the impairment test, particularly when headroom is thin.
Is this impairment calculator free?
Yes. This IAS 36 impairment calculator is completely free, with no login, no email gate, and no usage limits. It runs entirely in your browser and your financial data is never sent to a server. You can use it as many times as you need for planning, interim, and year-end impairment testing across all your engagements.
What other audit tools do you offer?
Ciferi offers 20+ free audit and accounting tools, all browser-based with no login required. These include the ISA 320 Materiality Calculator, ISA 530 Sampling Calculator, ISA 570 Going Concern Checklist, Analytical Review Tool (ISA 520), Financial Ratio Calculator, Depreciation Calculator (IAS 16), IFRS 16 Lease Calculator, IFRS 9 ECL Calculator, IAS 37 Provision Calculator, IAS 12 Deferred Tax Calculator, Transfer Pricing Tool, and Intercompany Elimination Tool (IFRS 10). Visit ciferi.com to see the full collection.