something just clicked, page-42

coppertop, IMO:

Extracted the following from IAS 36 - Impairment of Assets:

Definitions:

Impairment loss is the amount by which the carrying amount of an asset or cash generating unit exceeds its recoverable amount.

The recoverable amount of an asset or CGU is the higher of its fair value less costs to sell and its value in use.

Identification:

An asset is impaired when its carrying value exceeds its recoverable amount, when indications are present, an entity is required to make a formal estimate of recoverable amount.

Entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If such exists, the entity shall estimate the recoverable amount of the asset.

My Summary:
Any impairment/write down would only be to the 'recoverable amount', not the full value of the loan. Note: For administration purposes, I'm not sure what the recoverable amount would be deemed as though? However, it would be an extremely high % where the loan is unsecured as they then rank equally with other creditors etc..