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Last edited 02 Feb 2022
Functional Standards Common Glossary, published by the Cabinet Office, states: ‘Where the carrying amount of an asset exceeds its recoverable amount departments should recognise an impairment loss. Departments need to establish whether any of the impairment loss is as a result of consumption of economic benefit or reduction in service potential, or a change in market price. Examples of impairments resulting from a consumption of economic benefit or service potential include losses as a result of loss or damage, abandonment of projects, goldplating and use of the asset for a lower specification purpose.’
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