S&D – Assets – Part 3

Particulars IFRS US GAAP  Indian GAAP
       
Impairment of assets Impairment is assessed on discounted cash flows for assets other than held-for­ sale. If impairment is indicated, assets are written down to higher of fair value less costs to sell and value in use based on discounted cash flows.

Reversal of impairment losses is required, other than for goodwill; in certain circumstances.

Impairment is assessed on   undiscounted cash flows   for assets to be held and used. If less than carrying amount, impairment loss is measured using market value or discounted cash flows.

Reversal of losses is prohibited.

Similar to IFRS, except reversal of impairment losses for goodwill is required in certain circumstances.
Capitalisation of borrowing costs Permitted as a policy choice for all qualifying assets, but not required Required. Required.
Investment property Measured at depreciated cost or fair value, with changes in fair value recognised in the income statement. Treated the same as for other properties (depreciated cost).
Industry-specific guidance applies to investor entities (for example, investment entities).
Treated the same as a  long- term investment and is carried at cost less impairment.
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