PDF · Notes
AS-28 Impairment of Assets: Summary Chart for CA Inter Advanced Accounting
- Shared by
- Akshay K.
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 27 Oct 2026
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This is a two-page handwritten summary chart on AS-28, Impairment of Assets, covering PPE, intangible assets and investment property. It lists indicators of impairment from external and internal sources, how recoverable amount is found through net selling price and value in use, and how an impairment loss is written off against goodwill and then against other assets of a cash generating unit. It also covers the rules for reversing impairment losses. The notes suit CA Inter students revising Advanced Accounting who want a quick, formula-focused recap before the exam.
What the notes cover
The chart walks through the key steps of AS-28. It starts with indicators of impairment such as physical damage, new technology, adverse government restrictions and rising market interest rates. It then shows how carrying amount is compared with recoverable amount, which is the higher of net selling price and value in use. Worked points cover cash generating units, the allocation of corporate assets and goodwill, and the top-down and bottom-up tests. A few examples, such as provision for overburden in a mine, show how related liabilities are considered.
How to use them for revision
Use the chart as a checklist. Before solving an impairment question, go through the indicators, decide whether the asset is tested individually or as part of a CGU, and then apply the right allocation for goodwill. The notes also highlight exam shortcuts, such as using probability-weighted or range-based cash flows and converting foreign currency cash flows at the exchange rate on the date of impairment. Revisit the reversal section separately, since the limits on reversal are a common point of confusion.
Who should read these
These notes are meant for CA Inter students preparing Advanced Accounting, especially those who need to remember the sequence of steps in impairment testing and the treatment of goodwill. They also help students who already know the standard and want a compact summary for last-minute revision before the paper.
Key topics in these notes
- Indicators of impairment
- Recoverable amount: net selling price and value in use
- Cash generating units
- Allocation of goodwill and corporate assets
- Bottom-up and top-down test
- Impairment loss treatment
- Reversal of impairment loss
- Related liabilities and carrying amount
Frequently asked questions
What is covered in AS-28 impairment of assets notes for CA Inter?
The notes cover indicators of impairment, calculation of recoverable amount, cash generating units, treatment of goodwill and reversal of impairment losses.
How is impairment loss treated in a cash generating unit?
The loss is first written off against goodwill, if any, and the balance is reduced proportionately against the carrying amount of other assets in the unit.
When can an impairment loss be reversed?
As per the notes, an impairment loss can be reversed only if the external and internal indicators of impairment have ceased to exist, and the reversal is capped at the normal carrying amount.
How is goodwill allocated for impairment testing?
Goodwill is allocated to a CGU where possible and tested using the bottom-up test; where it is not allocated, the top-down test is applied.
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