In our previous blogs, we discussed methods of  fair value measurement  and various concepts associated with fair value of asset and liability. With the help of the concepts discussed, one should ensure that an exit price is based on market participants’ assumptions and entity-specific factors are not considered while measuring fair value. In this blog, we’ll discuss on  IAS 36: Impairment of assets.  IAS 36 is an accounting standard that helps companies ensure their assets are not valued higher than what they can actually recover from using or selling them. When an asset’s recorded value exceeds its recoverable amount (the higher of fair value less costs to sell or the value in use), it is said to be impaired. The standard requires companies to test assets for impairment regularly, especially for goodwill and certain intangible assets, and to reduce the asset’s value, if required, by recognizing an impairment loss. This ensures that financial statements reflects a r...