Valuation modellingof impairment of nonmonetary assetsin business management: ananalytical proposal for ias 36

This article addresses the assets valuation process using animpairment model, as proposed by IAS 36 (IASB). As a management practice, the impairment required by IAS 36, adopted in Brazil by the Brazilian Federal Council of Accounting (BFCA or CFC, acronym in Portuguese), poses challenges to accounting operators to projecting and discounting cash flow, measuring value in use and realizable value. This article discusses the results of a theoretical study about models for calculating impairment; and its research problem is concerned with analytically modelling impairment tests for nonmonetary assets. The aim is to analyze the measurement criteria in the initial recognition and to propose a calculation model, as well as to evaluate the objective evidences of performance loss. The methodology is analytical and descriptive and the results are conclusive in the proposition of methods to calculate the impairment of nonmonetary assets. The contributions of this study are relevant and consistent with the prescriptive accounting theory and differ from previous research as they focus on the application of an analytical methodology to support objective evidences.