[Verse 1] When an asset's value starts to fall Below what's written on the books You need to test and check it all For signs that value's been mistook The carrying amount might be too high Compared to what it's worth today Don't let those inflated numbers lie Impairment testing shows the way [Chorus] Test and measure, recognize the loss When carrying beats recoverable Write it down, don't let it cross The line where numbers aren't defensible Component by component, break it down Each part gets its own useful life Test and measure all around Cut through the accounting strife [Verse 2] Look for triggers in the market scene Declining prices, obsolescence too Internal damage unforeseen Or changes in how assets are used Compare the carrying to fair value less The costs to sell it on the street Or calculate the cash flow test To see which estimate you'll meet [Chorus] Test and measure, recognize the loss When carrying beats recoverable Write it down, don't let it cross The line where numbers aren't defensible Component by component, break it down Each part gets its own useful life Test and measure all around Cut through the accounting strife [Bridge] Componentization is the key For complex assets with different parts An airplane's engines separately Depreciate with different charts The fuselage and avionics too Each component has its own timeline Match the depreciation to How long each part will serve and shine [Verse 3] Once impaired you cannot reverse Under US Gap that loss is done But IFRS can lift the curse If asset values start to run Back up to where they used to be But never higher than before The impairment came to be That's the reversal floor [Chorus] Test and measure, recognize the loss When carrying beats recoverable Write it down, don't let it cross The line where numbers aren't defensible Component by component, break it down Each part gets its own useful life Test and measure all around Cut through the accounting strife [Outro] Asset values rise and fall But honest books will tell the truth Component depreciation for all Complex assets, that's the proof
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