Impairment of intangible Asset

I’ll take into view that the patents acquired as purchased and not from business combinations. 

Impairment loss is recognised in the same year when it occurs.

In the next year, if there is a recovery of carrying amount of the asset, you can reverse impairment charges. 

Here you gave recoverable amounts of FVLCD & VIU, but not the carrying amounts. 

The reversal is recognised in P&L unless Asset is using revaluation model instead of cost model. 

Finally, establish there is no impairment in the sixth year, calculate NBV after adjusting for amortisation, when there is no indication of impairment this year ie., carrying value is lower than its recoverable amount, reverse previous impairment charges. 

IAS 36 & IndAS 36 & AS 28

Sorry, wish I could do the calculations but I’m on my mobile device as my laptop has maintenance issues currently. I have a link here with an example and very easy to understand. From fifth year NBV, subtract impairment losses& depreciation. In the 6 year NBV, subtract depreciation at the rate specific to new revised amounts. Then calculate the NBV of Asset in sixth year at historical cost ie., without impairment loss.

NBV without impairment

-NBV with impairment

= Impairment reversal amount.

this should be addd back to the asset which is equal to the historical value of asset. 

https://library.croneri.co.uk/cch_uk/iast/ias36-example-200403

Carrying value is lesser than or equal to original carrying value+it should be lower than recoverable amount. 

There are conditions for how impairment loss is treated = differs for cost & revaluation model.

Then reversal

Asset dr.(Asset)

Impairment reversal Cr. (Income)

Recoverable amount= higher of FVLCD or VIU.

To make it easy, prepare two NBV schedules which includes  FVLCD & VIU. one with impairment and other without impairment, compare recoverable amounts for all years if data is available. 

The carrying amount is still higher than recoverable amount FVLCD indicating an impairment. What is the VIU and which is high? We don’t have to do reversal but calculate further impairment. So account for impairment loss this year as well because the FVLCD amount is the only amount given in the question and it must be higher. Then check for 7th year if impairment had reduced or not. I’m glad you got it right if you took depreciation rate for SLM method as 1/10= 10%

Sure, subtract amortisation along with it for this year. Mostly cost model is used in general terms. 

Txs for letting me know as I was unaware of it.

I didn’t give it much thought before, is your annual amortisation 6237*6= accumulated amortisation?

Did you use SLM method only? depreciation is charged right from the day Asset is put to use. So technically it’s 62370/10 years finite life of asset= 6237 annual amortisation. If it is indefinite lived asset, no need to amortise.