Impairment of assets

AAL does not permit the recording of a provision against the carrying value of an impaired asset. This includes setting up provisions for tangible assets, as well as inventories, accounts receivable and other assets.

IFRS requires, among other things, that long-lived assets and certain identifiable intangibles that are held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In addition, provisions may also be set up on the carrying value of short-term assets (for example, accounts receivable) when it is likely that the full carrying value of the asset will not be recovered.