Substantiation file requirements – Impairment assessment PPE

Client Substantiation File.

Information required	Responsibility	Completed	Reference
An assessment of the continued applicability of the useful lives and residual values assigned.
An assessment of the impairment/ impairment indicators per NZ IAS 36 applicable to all assets.
Detailed calculations supporting value in use, and supporting valuations for fair value less costs to sell where impairment indicators have been identified.
Highlight to the audit team any assets that have been impaired or any idle assets that are not in use, but are still being depreciated. For the idle assets, a documented assessment is required to justify why the asset does not need to be impaired.