Case Study: UAE Holding Company achieves accurate IAS 36 impairment compliance with HLB HAMT

UAE Holding Company restates financials after HLB HAMT’s IAS 36 impairment review

The UAE holding company was carrying its investment in a loss-making subsidiary at historical cost without performing an impairment assessment, which was a material departure from IAS 36. This overstatement of assets and equity posed a significant risk to stakeholders relying on its financial statements. HLB HAMT was engaged to review the group's financial reporting and address this challenge.

HLB HAMT conducted a structured impairment assessment, which included testing cash flow forecasts, validating the discount rate, and calculating the recoverable amount. As a result, the holding company recognized an impairment charge, restated its balance sheet and equity, and updated its disclosure notes. HLB HAMT's solution ensured the financial statements presented a true and fair view for stakeholder reliance.