Indicators

u External sources of information  

l  A fall in the asset's market value that is more significant than would normally be expected from passage of time over normal use  

l  A significant change in the technological, market, legal or economic environment of the business in which the assets are employed

l  An increase in market interest rates or market rates of return on investments likely to affect the discount rate used in calculating value in use

l  The carrying amount of the entity's net assets being more than its market capitalisation

u Internal sources of information  

l  evidence of obsolescence or physical damage, adverse changes in the use to which the asset is put, or the asset's economic performance

u No indications of impairment

l  Even if there are no indications of impairment, the following assets must always be tested for impairment annually.

Ø  An intangible asset with an indefinite useful life

Ø  Goodwill acquired in a business combination