Hello my fellow colleague,
I want to share with you a knowledge I stumbled on. To those who understand the dynamics of impairment losses in IAS 36, you will agree with me that it sounds abnormal to have an impairment loss which is greater than the carrying amount of the asset, but I want you to take a look at IAS 36 paragraph 62
"When the amount estimated for an impairment loss is greater than the carrying amount of the asset to which it relates, an entity shall recognise a liability if, and only if, that is required by another Standard".
The above means that impairment losses can actually be greater than the carrying amount of an asset. Hmmm... Sounds impossible right?
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