Asset Impairments — Audit & Governance Dashboard

Why Impairment Keeps Assets Honest

Impairment ensures the balance sheet does not carry assets at more than they are worth, a discipline that matters acutely in the public sector where assets are often non-cash-generating and prone to damage, theft and obsolescence. GRAP 21 and GRAP 26 require an entity to test for impairment when indicators exist and to write down assets whose service potential has fallen, and failure to do so overstates assets and surplus. AuditPro Core records impairment losses against non-current assets so write-downs are recognised on evidence, not deferred to flatter the position.

The Numbers

AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.

Total Impairment

R 214 m

▲ 22% YoY

Indicators Flagged

assessed this year

Reversals

R 12 m

recovered value

% of Carrying Value

2.2%

of net PPE

Impairment Loss by Class (R m)

Impairment Detail

Asset Class	Carrying (R m)	Impairment (R m)	Trigger
Infrastructure	4910	138	Physical damage
Buildings	3820	42	Obsolescence
Plant & Equipment	612	18	Idle
Vehicles	284	10	Accident
Intangibles	96	6	Discontinued

Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.

Impairment indicators

An impairment review is triggered by indicators such as physical damage, obsolescence, idle assets or a fall in service demand. Identifying indicators is the first discipline; an entity that records no impairments is rarely impairment-free.

Recoverable service amount

For non-cash-generating assets the recoverable amount is based on remaining service potential rather than market value. The impairment loss is the excess of carrying amount over that recoverable service amount.

Reversal of impairment

Where the conditions that caused an impairment reverse, the loss may be reversed up to what the carrying amount would otherwise have been. Tracking impairments supports both the write-down and any later reversal.

How AuditPro Core Bridges the Gap

Continuous monitoring: impairment indicators flowing from the asset register and verification process are surfaced so reviews are triggered on time.
Exception workflow: assets flagged as damaged, idle or obsolete are routed for an impairment assessment and recognition decision.
Audit-ready export: recognised impairments and their basis export for the impairment note and the auditor's review of the estimate.
Traceability to source: each impairment links to its indicator evidence and the affected asset, defending the write-down under audit.

Key Takeaways

An entity reporting zero impairments has usually not looked for indicators.
Non-cash-generating assets are impaired against service potential, not market value.
Recognise write-downs promptly; deferral overstates assets and surplus.
Track impairments to support both the loss and any later reversal.