Practical application of accounting treatment for impairment of assets in accordance with Egyptian accounting standards

The Egyptian Accounting Standard (No. 31 - Impairment of Assets) addresses the general framework of accounting treatment for impairment of assets, in terms of the definition of concepts associated with that treatment, the scope of impairment of assets, the conditions for recognition of impairment losses, and how accounting treatment for impairment losses is presented. As follows:
1. Certain concepts related to the accounting treatment of impairment of assets:
(A) Impairment loss is the amount for which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount.
(B) Cash-generating unit: the smallest group of assets that generate cash inflows independently of cash inflows from other assets or groups of other assets, which is the “unit of assets”.
(C) Redeemable value is the higher of its fair value less costs to sell and value in use.
There are many opinions about what should be the practical application of accounting treatment to impair the value of assets, and I am here to recommend the Chairman of one of the Egyptian professional bodies, who said (*):
"I call on my fellow accountants to study the existence of indicators of impairment of assets on an objective basis, and therefore use caution in the use of information or incidental factors as a basis for the existence of these indicators, so as not to lead to the lack of seriousness of the financial statements."
In this study, I wanted to present my point of view as one of the academic and professional accountants (as a professor in the accounting department at the faculty of commerce, and as a chartered accountant practicing the accounting profession).