##### Asked by: Ulf Djumagaliev

asked in category: General Last Updated: 19th January, 2020# How do you calculate impairment value?

**impairment loss**. All you need to do is subtract the recoverable amount from the carrying cost to determine the amount you can list as a

**loss**. So using the previous example, subtract $500,000 from $750,000 to get $250,000.

In this way, how do you calculate the value of an asset?

**Value in Use**. **Value in use** equals the present **value** of the cash flows generated by an **asset** or a cash generating unit. Impairment loss, if any, under IFRS is determined by comparing the carrying amount of an **asset** of CGU to the higher of the fair **value** less cost to sell or the **value in use** of the **asset**.

Also, how do you calculate depreciation after impairment? **Calculate the carrying value of the asset.**

- Using straight-line depreciation, calculate the annual depreciation by dividing the original cost by the number of years in useful life.
- Determine the accumulated depreciation by multiplying the annual depreciation by the number of years the equipment has been owned.

Also know, what is impairment example?

**Impairment** in a person's body structure or function, or mental functioning; **examples** of **impairments** include loss of a limb, loss of vision or memory loss. Activity limitation, such as difficulty seeing, hearing, walking, or problem solving.

What is NAV formula?

The **Formula** for **Net Asset Value** (**NAV**) The **formula** for a mutual fund's **NAV** calculation is straightforward: **NAV** = (Assets - Liabilities) / Total number of outstanding shares. The correct qualifying items should be included for the assets and liabilities of a fund.