One of the key pillars of business practices is maintaining transparency in all details. In today’s dynamic business landscape, accurately assessing the value of assets is crucial for making informed financial decisions. Asset impairment testing involves evaluating whether the carrying value of a company’s assets exceeds their recoverable amount. If the Recoverable Amount exceeds the carrying value, then there is no goodwill impairment, and vice versa. This process is vital for ensuring the accuracy of financial statements and adhering to global regulatory requirements.
Therefore, the Capital Markets Authority in the State of Kuwait obligates all listed and licensed companies to submit a report on any impairment of assets.
What are the governing references that companies are required to submit Reports on Impairment Testing?
- The Capital Markets Authority’s Resolution No. (11) of 2024 Regarding Guidelines for the Valuation or Study of Impairment of Assets
- IAS 36 – Impairment of Assets
- IFRS 9 – Financial Instruments
- IFRS 13 – Fair Value Measurement
What is the added value to business entities from preparing Reports on Impairment Testing?
- Compliance with regulatory requirements of the Capital Markets Authority.
- Identifying the value of the impaired asset and ensuring the accuracy of financial statements.
Why Baker Tilly Kuwait?
Baker Tilly Kuwait is distinguished by specialist professional experience and offers the following characteristics carrying added value to our clients as follows:
- Baker Tilly has a license as an asset valuator from the Capital Markets Authority;
- A global consulting firm with a local presence in the State of Kuwait;
- Professional team with in-depth experience in providing investment consultancy services in Kuwait.
What are the services provided by Baker Tilly Kuwait?
Preparation of Impairment Testing Report