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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education