Theoretical and Practical Aspects of Impairment of Non-Cash-Generating Assets in the Public Sector Entities, according to the International Public Sector Accounting Standard (IPSAS) 21

Abstract International Accounting Standards pay a special attention to the asset measurement issues, The assent held by the public sector entities bring an economic benefit, or are used in the free delivery of services. The assets which carry the service potential, do not generate the cash flows, but generate a material basis for implementation of main functions of the public organizations. The issues related to impairment of the cash-generating and non-cash-generating assets are discussed in IPSAS 21 and IPSAS 26. Actuality of the issue is conditioned by circumstance that in case of impairment of the non-cash-generating assets, the methods of measurement of value of their use differ from measurement of the value of use of those assets, which bring an economic benefit. The Article considers the issues of determination of impairment of the non-cash-generation assets and recognition of the losses caused by such impairment in the public sector entities, according to the International Accounting Standards. Objective. A purpose of the Article is determine to analyze the theoretical aspects of determination and recognition of the losses caused by impairment of the non-cash-generating assets and, to reflect the same in the financial reporting according to IPSAS 21 - “Impairment of Non-Cash-Generating Assets”.