PDF · As 28
AS 28 Impairment of Assets: Notes for CA Inter Advanced Accounting
- Shared by
- Kavyansh
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 1 Nov 2026
Part of: CA InterAdv Accounting
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These notes cover AS 28 Impairment of Assets for CA Inter Advanced Accounting. They explain when an asset's carrying amount exceeds its recoverable amount, how impairment loss is measured and recorded, and how recoverable amount is found as the higher of net selling price and value in use. The preview includes worked examples on present value of future cash flows, net selling price after disposal costs, and impairment loss on a machine. The notes suit students preparing for the Advanced Accounting paper who want clear, example-driven revision of this standard.
What the notes cover
The notes start with the basic condition for applying AS 28, which is that carrying amount is greater than recoverable amount. They define impairment loss as the excess of carrying amount over recoverable amount and explain that it is debited to the profit and loss account, except where a prior revaluation exists. Recoverable amount is built up from net selling price and value in use, and the notes show how each is calculated. Step-by-step tables use discounting factors at a given interest rate to compute the present value of expected cash flows, including residual or disposal proceeds.
How to use them for exam revision
Work through the examples in order, first computing value in use from the discounted cash flow table, then net selling price after disposal costs, and finally the impairment loss as carrying amount minus recoverable amount. Practise the journal entry for impairment loss alongside each calculation so the accounting treatment stays clear. Revisit the example involving depreciation over a revised useful life, since such questions often appear in exams with a depreciation adjustment.
Who should read them
These notes are meant for CA Inter students revising Advanced Accounting who need to master AS 28 calculations. They are also useful for students who want to check their working on impairment questions against a set of solved problems. Students who find the discounting and present value steps difficult will benefit most from following the tables line by line.
Key topics in these notes
- Carrying amount and recoverable amount
- Impairment loss and its accounting entry
- Net selling price and cost of disposal
- Value in use using present value of cash flows
- Impairment in relation to prior revaluation
- Depreciation after impairment and revised useful life
- as 28
- impairment of assets
- ca inter
- advanced accounting
- recoverable amount
- value in use
- accounting standards
Related notes
Frequently asked questions
What is impairment loss under AS 28?
Impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. The notes explain it is debited to the profit and loss account unless there is a prior revaluation.
How is recoverable amount calculated in these notes?
Recoverable amount is the higher of net selling price and value in use. The examples show how each is computed.
How is value in use worked out in the examples?
Expected future cash flows are discounted using the given interest rate to get their present value, and the sum of these discounted amounts is the value in use.
Does the note include worked examples?
Yes, the preview includes several solved examples on value in use, recoverable amount and impairment loss for a machine and a PPE.
How can I read the full note?
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