SOME SIMILARITIES AND DIFFERENCES BETWEEN THE NAS1 AND THE IAS2 RELATED TO IMPAIRMENT OF ASSETS

Abstract

Impairment is an important element in the life cycle of an asset because this operation can result in a real picture of the value of an entity’s assets. In the present article we have presented some similarities and differences of the national and international standards’ provisions, that arise when applied in practice to depreciate an asset, such as those between external and internal indices of an asset depreciation, and, also, those related to the indicators used for the impairment of assets (recoverable amount, value in use). Using research methods such as comparative and document analysis, we have studied the opinions of some national scientists, which allowed the formulation of conclusions and stronger recommendations on the subject.

Keywords

• depreciation
• assets
• fair value
• cost of sale
• recoverable amount
• value in use