According to IAS 36, recoverable amount is described as the higher of two items. 1) Future cash flows from the asset and fair value of asset. 2) Present value of future cash flows from the asset and fair value of the asset. 3) Future cash inflows from the asset and fair value of the asset less costs of disposal. 4) Present value of future cash inflows from the asset and fair value of the asset less costs of disposal.
According to IAS 36, recoverable amount is described as the higher of two items. 1) Future cash flows from the asset and fair value of asset. 2) Present value of future cash flows from the asset and fair value of the asset. 3) Future cash inflows from the asset and fair value of the asset less costs of disposal. 4) Present value of future cash inflows from the asset and fair value of the asset less costs of disposal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The IAS 36 Impairment of Assets test for an individual asset required that the carrying amount of the asset be compared with its recoverable amount. According to IAS 36, recoverable amount is described as the higher of two items.
1) Future
2) Present value of future cash flows from the asset and fair value of the asset.
3) Future
4) Present value of future cash inflows from the asset and fair value of the asset less costs of disposal.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education