12. Which of the following statements about the requirements of IFRS 5 is incorrect? a. At the end of the reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in profit or loss. b. At the end of die reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in other comprehensive income. c. An entity shall recognize gain from subsequent increase in fair value less cost to sell of an asset held for sale, but not in excess of the cumulative unrecovered impairment loss recognized for that asset. d. An entity may reclassify an asset held for sale to an asset held for use when management changes its plan for the sale and decides to use the asset for operations.

12. Which of the following statements about the requirements of IFRS 5 is incorrect? a. At the end of the reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in profit or loss. b. At the end of die reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in other comprehensive income. c. An entity shall recognize gain from subsequent increase in fair value less cost to sell of an asset held for sale, but not in excess of the cumulative unrecovered impairment loss recognized for that asset. d. An entity may reclassify an asset held for sale to an asset held for use when management changes its plan for the sale and decides to use the asset for operations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

12. Which of the following statements about the
requirements of IFRS 5 is incorrect?
a. At the end of the reporting period, when the fair
value less costs to sell decreases from the initial
recognition of the asset as held for sale, an
impairment loss shall be recognized in profit or
loss.
b. At the end of die reporting period, when the fair
value less costs to sell decreases from the initial
recognition of the asset as held for sale, an
impairment loss shall be recognized in other
comprehensive income.
c. An entity shall recognize gain from subsequent
increase in fair value less cost to sell of an asset
O held for sale, but not in excess of the cumulative
unrecovered impairment loss recognized for that
asset.
d. An entity may reclassify an asset held for sale
to an asset held for use when management
changes its plan for the sale and decides to use
the asset for operations.

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