ENHANCING THE CONTINUOUS MONITORING PROCEDURE FOR IDENTIFYING IMPAIRMENT INDICATORS OF NON-CURRENT ASSETS IN JOINT-STOCK COMPANIES
DOI:
https://doi.org/10.5281/zenodo.21537863Abstract
This article examines ways to enhance the continuous monitoring of impairment indicators for non-current assets
in joint-stock companies. In accordance with IAS 36, impairment indicators are classified according to external information
sources, including market conditions, interest rates, and changes in the legal and technological environment, and internal
information sources, including physical deterioration, technological obsolescence, and declining asset performance. Based on an
analysis of joint-stock companies operating in the telecommunications, postal services, information technology, and insurance
sectors, the study develops industry-specific sets of impairment indicators. It also proposes a five-stage continuous monitoring
procedure for determining whether an impairment test is required. The findings suggest that the proposed procedure may
facilitate the timely identification of impairment indicators, reduce undue reliance on managerial judgement, and enhance the
transparency of financial reporting.
Keywords
non-current assets, impairment, impairment indicators, impairment testing, continuous monitoring, IAS 36, joint-stock companies, financial reporting, recoverable amount.References
Decree of the President of the Republic of Uzbekistan No. PF-60 dated 28 January 2022 “On the Development
Strategy of New Uzbekistan for 2022–2026” // National Database of Legislation. — 2022. — 29 January. — No.
/22/60/0082. https://lex.uz/ru/docs/-5841063
Resolution of the President of the Republic of Uzbekistan No. PQ-4611 dated 24 February 2020 “On Additional
Measures for the Transition to International Financial Reporting Standards” // National Database of Legislation. —
— 25 February. — No. 07/20/4611/0255. https://lex.uz/docs/-4746047
IFRS Foundation. IAS 36: Impairment of Assets. — London : IFRS Foundation, 2023.
AbuGhazaleh N. M., Al-Hares O. M., Roberts C. Accounting discretion in goodwill impairments: UK evidence // Journal
of International Financial Management & Accounting. — 2011. — Vol. 22, No. 3. — P. 165–204. — DOI: 10.1111/j.1467-
X.2011.01049.x.
Amiraslani H., Iatridis G. E., Pope P. F. Accounting for Asset Impairment: A Test for IFRS Compliance across Europe.
— London : Centre for Financial Analysis and Reporting Research, Cass Business School, City University London,
Elliott J. A., Shaw W. H. Write-offs as accounting procedures to manage perceptions // Journal of Accounting Research.
— 1988. — Vol. 26, Supplement. — P. 91–119. — DOI: 10.2307/2491182.
Francis J., Hanna J. D., Vincent L. Causes and effects of discretionary asset write-offs // Journal of Accounting
Research. — 1996. — Vol. 34, Supplement. — P. 117–134. — DOI: 10.2307/2491429.
Hitchner J. R. Financial Valuation: Applications and Models. — 4th ed. — Hoboken : John Wiley & Sons, 2017.
Koller T., Goedhart M., Wessels D. Valuation: Measuring and Managing the Value of Companies. — 7th ed. — Hoboken
: John Wiley & Sons, 2020.
Riedl E. J. An examination of long-lived asset impairments // The Accounting Review. — 2004. — Vol. 79, No. 3. — P.
–852. — DOI: 10.2308/accr.2004.79.3.823.
Karimov A. A., Islomov F. R., Avloqulov A. Z. Accounting : textbook. — Tashkent : Sharq, 2004. — 592 p. — [In Uzbek].
Tashnazarov S. N. International Financial Reporting Standards : textbook for master’s degree programmes. —
Tashkent : Iqtisod-Moliya, 2019. — 584 p. — [In Uzbek].
Downloads
Published
How to Cite
Issue
Section
