As reporting season nears, companies will be required to assess the value of their assets held on the balance sheet and potentially record impairments against such assets. This can occur for a number of reasons but is typically due to adverse market conditions or a change in the market’s perception of a particular industry. Businesses continue to face difficulty identifying whether these changes mean that an impairment should be recognised and how to appropriately test for such impairments. Whilst Australian Accounting Standards Board (AASB) 136 sets out the indicators to consider when assessing whether an asset may be impaired, with the aim of ensuring that a company’s assets are carried at no more than their recoverable amount, the actual application is more problematic.