International Accounting Standard No. 36 (IAS 36) Impairment of Assets is certainly one of the most challenging accounting standards issued by the International Accounting Standards Board (IASB). Significant attention has been paid to this standard on the onset and the aftermath of the financial crisis since management, auditors, investors and other relevant stakeholders had reasonable doubts as regards to the recognized values of companies’ assets, especially intangible assets, which are, due to their nature, most susceptible for potential impairments. Although various companies recorded significant impairments in recent years, many of them still have huge amounts of hidden reserves in their asset base. The implications of potential impairment losses are significant and challenge management, auditors and valuation experts to a large extent. Some of the IAS 36 provisions have been eased or have become questionable, especially after the issuance of International Financial Reporting Standard No. 13 (IFRS 13). This article sheds some light on the requirements and applications of IAS 36, with special emphasis on audit considerations and evaluates its relevance in the light of theoretical soundness and practicability under the current effective accounting framework.