what the Indications of Impairment under IAS 36, give me examples?

Answer 1

For indications of impairment, concentrate on paras 12 - 14. Such indications can come from external sources or internal sources.
External sources:
* market value declines (e.g. investments stated at cost, but market value is lower than cost)
* negative changes in technology, markets, economy, or laws (when the Pentium 4 computers came out, all the Pentium 3 computers still unsold could not be sold without discounts)
* increases in market interest rates
* company stock price is below book value

Internal sources:
* obsolescence or physical damage (damaged furniture & equipment)
* asset is part of a restructuring or held for disposal
* worse economic performance than expected (investment property could not fetch a rental that would cover mortgage loan interest and other costs of holding the property)

If you notice any of these indications of impairment, you're supposed to carry out an exercise to see if there is a real impairment and to quantify it and recognise it.