IFRS require that assets must be assessed for indications of impairment Select one: a. when events and circumstances indicate that asset's carrying amount may not be recoverable. b. at the end of each reporting period. c. at the end of every quarter. d. whenever the method of depreciation has changed..

IFRS require that assets must be assessed for indications of impairment Select one: a. when events and circumstances indicate that asset's carrying amount may not be recoverable. b. at the end of each reporting period. c. at the end of every quarter. d. whenever the method of depreciation has changed..

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11MC: How are intangible assets with an indefinite life treated? A. They are depreciated. B. They are...

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In accordance with HKAS 36 ‘Impairment of Assets’ which of the following statements are true? (1) Intangible assets with indefinite useful life must be checked annually for evidence of impairment (2) An impairment loss must be recognized immediately in the statement of profit or loss, except that all or part of a loss on a previously revalued asset should be charged against any related revaluation surplus (3) If the fair value less costs to disposal exceeds the carrying amount of an asset there is no need to estimate value in use A. 1, 2 and 3 B. 1 and 3 C. 2 and 3 D. 1 and 2
Which of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized? A Removal of the asset. B Gain or loss on derecognition. C All of the above items must be recorded in the accounting records. D Depreciation up until the date of derecognition.
How are intangible assets with an indefinite life treated? A. They are depreciated. B. They are amortized. C. They are depleted. D. They are tested yearly for impairment.
In accordance with IAS 36 Impairment of Assets, which of the following statements is correct? 1) Investment properties carried at fair value must be treated annually for impairment. 2) Goodwill must be tested for impairment only when there is an indicator of impairment. 3) Intangible assets with indefinite useful lives must be tested annually for impairment. 4) Intangible assets with definite useful lives must be tested annually for impairment.
Access the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation. 2. The calculation of an impairment loss for property, plant, and equipment. 3. Accounting for a change in depreciation method. 4. Goodwill should not be amortized.
All of the following are key steps related to accounting for impairments of long-term operating assets except ________. Group of answer choices measurement subsequent to impairment asset grouping derecognition of impairment testing for impairment
Changes in the estimates for residual value or useful life result in changes in the depreciation expense calculation. These changes are handled O retroactively. O as cumulative changes. O prospectively. O as prior period adjustments.
Explain the accounting treatment in the event that an impairment review of a non-current asset which has been previously revalued with a revaluation surplus revealed that the non-current asset has suffered an impairment loss.
Ma1. d) In accordance with IAS 36: Impairment of Assets, an entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any of such indications exist, the entity shall estimate the recoverable amount of the asset. However, some assets would require mandatory testing for impairment. Required: Outline assets that require mandatory testing for impairment in accordance with IAS 36: Impairment of Assets.
Statement 1: Long lived assets are reviewed for impairment only when circumstances indicate that the carrying amount of an asset might not be recovered. Statement 2: Intangible assets, particularly goodwill and intangible assets with indefinite life, are reviewed for impairment annually. O Only Statement 1 is correct. O Only Statement 2 is correct. O Both statements are correct. Both statements are incorrect.
Which of the following is a valid statement regarding "assets held for sale"? X Depreciation continues while the assets are being held for sale. Assets intended for sale within a period of twelve months from the statement of financial position date are classified as current assets. No maintenance costs shall be reported in the income statement during the period in which the asset is held for sale. No further loss is taken up on the decline in the fair value of the asset from the date it is classified as held for sale until the date of actual disposal.
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset