Disclosures of impairments in the notes should include which of the following?

• A. Amount of impairment losses recognised in SPLOCI for the period
• B. Details of the impairment's tax impact
• C. Both the asset's original cost and current fair value
• D. Disclosures are not required for impairment

Answer: (A)

The key idea is what impairment information must be disclosed in the notes. When impairment losses affect investments in associates or joint ventures, these losses flow through the investor’s share of results (SPLOCI). Disclosing the amount of impairment losses recognized in SPLOCI for the period shows readers exactly how much those impairments reduced the group’s reported results from its associates and JVs and how it changed the carrying amount of those investments.

Details about the impairment’s tax impact are not the primary disclosure here and are usually covered in separate tax notes. Requiring the original cost and current fair value in this specific impairment disclosure isn’t standard practice for reporting the period’s impairment through SPLOCI. And since impairment disclosures are indeed required, stating that disclosures aren’t required is incorrect.

So, the best answer is that the notes should disclose the amount of impairment losses recognized in SPLOCI for the period.