When assessing whether there is an impairment, IAS 36 requires that the following factors should be considered by an entity;
- An expected decline in the asset market values.
- Significant changes in technology, market, economic factors or laws and regulations that have an adverse effect on the entity.
- An increase in interest rates, affecting the value in use of the asset.
- Whether the carrying amount of the net asset of the entity is more than its market capitalization.
- Evidence that the asset is damaged or no longer of use to the entity.
- There is a reduction in the asset expected to remain useful for life
- There is a plan to discontinue or restrict the operations for which the asset is currently used.
- There is evidence from internal reporting indicating that the asset is performing worse than expected.