Teste de Recuperabilidade CPC 01 EN - SETAPE

Recoverability Test/Impairment Test CPC 01

By performing the Recoverability Test CPC 01 with Setape, you are ensuring that the measurement of the value of your company’s assets will be done correctly and accurately.

What is the recoverability test/Teste de Impairment CPC 01?

Companies must ensure that the carrying amount of their assets is less than or equal to the amount that can be recovered by selling or using them. According to CPC 01 [R1], when this does not occur, the company must recognize an adjustment for impairment losses. This adjustment is often referred to by its English equivalent, impairment.

What is the normative basis for the recoverability test?

The impairment test is standardized in Technical Pronouncement CPC 01 [R1] – Impairment of Assets. This CPC is correlated to the international accounting standard IAS 36 (BV2010).

The calculation of the recoverable amount follows the provisions of CPC 46 – Measurement of Fair Value.

How often should the recoverability test be done?

The company should assess at the end of each reporting period, whether there is any indication that an asset may have been devalued.

Some signs that indicate a possible devaluation are technological obsolescence, loss of productivity, the use of accelerated depreciation and below-expected economic performance.

If there is any indication, the company must estimate the recoverable amount of the asset.

Regardless of whether or not there is any indication of impairment, the company must test the impairment of:

  • Intangible assets with an indefinite useful life;
  • Intangible assets not yet available for use;
  • Goodwill paid for expected future profitability in a business combination;

The impairment test can be performed at any time in the period of one year, provided that it is performed, every year, in the same period. Different intangible assets can be tested for impairment at different periods.

What assets should be tested for impairment?

All company assets must be submitted to the Recoverability Test, with the exception of:

  • Stock;
  • Assets arising from construction contracts;
  • Deferred tax assets;
  • Assets arising from employee benefit plans;
  • Assets classified as held for sale;
  • Financial assets within the scope of CPC 48;
  • Investment properties measured at fair value;
  • Biological assets related to agricultural activity.

The impairment test should be applied to financial assets classified as:

  • Subsidiaries
  • Affiliates
  • Jointly controlled enterprise

For the analysis of losses due to devaluation with other financial assets, CPC 48 – Financial Instruments – must be applied.

What is recoverable value?

An asset’s recoverable amount is the higher between:

  • The fair value, net of selling expenses;
  • The value in use.

It is not necessary to determine the recoverable amount by both methods. If any of these amounts is greater than the carrying amount of the asset, it is clear that there is no need to adjust for impairment losses.

Fair value is the price that would be received for the sale of an asset or that would be paid for the transfer of a liability in an unforced transaction between market participants on the measurement date.

Value in use is the present value of expected future cash flows that must come from an asset or a cash-generating unit. Cash generating unit is the smallest identifiable group of assets that generates cash inflows independent of cash inflows from other assets or other groups of assets.

Typically, profitable cash-generating units tend to generate positive cash flows, capable of remunerating the assets used and generating surplus profits. This is an indication that the calculation of the value in use is likely to be greater than the book value and consequently sufficient to determine that there is no need to adjust for impairment losses.

What are the valuation techniques?

Fair value: The valuation techniques used to measure fair value give higher priority to prices quoted in active markets (defined as those in which transactions for the asset or liability occur with sufficient frequency and volume to provide price information on an ongoing basis) and lower priority to unobservable data, following the following hierarchy:

  • (i) Level 1: prices quoted in active markets for identical assets or liabilities to which the company may have access on the measurement date.
  • (ii) Level 2: (a) prices quoted for similar assets in active markets; (b) prices for identical assets or liabilities in non-active markets; (c) information, except quoted prices, that is observable for the asset or liability; or (d) information corroborated by the market.
  • (iii) Level 3: unobservable data for the asset or liability because there is little or no market activity for the asset or liability at the measurement date.


  • (i) The fair value of common vehicles in large urban centers is usually determined by level 1 prices;
  • (ii) The fair value of land in urban areas is usually determined by level 2 prices;
  • (iii) The fair value of machines is usually determined by level 3 prices;

Value in Use: To calculate the value in use of an asset, expected present value techniques (or discounted cash flow techniques) are used, based on estimates of future cash inflows and outflows derived from the continued use of the asset and its final write-off, discounted at an appropriate rate.

Technical Standards

Setape’s valuations are always carried out with strict observance of all guidelines set by the ABNT Standards – Brazilian Association of Technical Standards and Ibape Nacional – Brazilian Institute of Engineering Valuations and Expertise.

Why hire Setape?

Complete Advisory

The only company that performs all services of valuation of movable and immovable property, urban and rural, valuation of companies, and has support for asset control (fixed assets).

Proven Experience

With 45 years of activities and more than 80,000 services performed, it is the company with the most experience in evaluating the fixed assets market and in economic evaluations.

Qualified Team

It has its own team with more than a hundred professionals from all specialties.

Satisfied Customers

Quality of services proven by its customers

International Coverage

It belongs to the VRG – Valuation Research Group of international valuation companies with service coverage on all continents

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