Select the most correct answer: A vehicle, which is classified as property plant and equipment (IAS 16) and measured using the cost model, is to be transferred to the ‘held for sale’ classification. It has a cost of R220 000 and its accumulated depreciation to date of transfer is R44 000. This asset has never before been impaired. On date of transfer: its fair value is R154 000 with estimated costs to sell of R11 000, and its value in use is R198 000.
Select the most correct answer:
A vehicle, which is classified as property plant and equipment (IAS 16) and measured using the cost model, is to be transferred to the ‘held for sale’ classification.
It has a cost of R220 000 and its
The impairment consequences are as follows:
a. The asset is impaired in terms of IAS 36 Impairment of assets but is not impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations.
b. The asset is not impaired in terms of IAS 36 Impairment of assets but is impaired in terms of IFRS 5 Non-current assets held for sale and discontinued operations.
c. The asset is impaired in terms of both IAS 36 Impairment of assets and IFRS 5 Non-current assets held for sale and discontinued operations.
d. The asset is not impaired in terms of either IAS 36 Impairment of assets or IFRS 5 Non- current assets held for sale and discontinued operations.
e. None of the above are correct.
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