This assignment delves into the intricacies of corporate accounting and financial reporting, specifically addressing the crucial topic of asset impairment as per IAS 36. The paper explores the concepts of recoverable value, fair value, and value in use, providing a comprehensive understanding of how companies assess and account for the diminished value of their assets. It outlines the indicators used for impairment assessment, distinguishing between internal and external factors, and clarifies the application of IAS 36 to various asset classes. The assignment explains how to calculate recoverable value (the higher of value in use and fair value less costs of disposal), emphasizing the importance of accurate cash flow projections and the appropriate selection of a discount rate. It also covers the determination of fair value, referencing IFRS 13, and details the required disclosures in financial statements regarding impairment losses and related assumptions. Overall, the assignment offers a practical guide to impairment accounting, helping students grasp the complexities of asset valuation and financial reporting.