The existing asset does not have sufficient capacity to meet the present demands that are placed on it. Obsolence Inadequacy Physical impairment Rental

Q: The book value of a depreciable asset is       A. The original cost of the asset.       B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: Why are assets impaired?

A: Assets are those tangible and intangible resources in the business which the business can own and…

Q: The transfer to expense of the cost of intangible assets attributed to the passage of time or…

A: Introduction:- Assets are mainly classified into two types as follows under:- Tangible assets…

Q: Net purchase price of an asset plus all reasonable and necessary expenditures to get it in place and…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: how do you determine when goodwill will be written off under the impairment rules

A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: An asset is impaired if: O a. The amount to be recovered through use (or sale) of the asset exceeds…

A:

Q: re for impairment loss assets, what will happen/effect?

A: Impairment Recognition Business assets should be tested for impairment when a situation occurs that…

Q: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.

A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…

Q: Explain the reasons for the impairment and the justification for treating the write-down as a…

A: When the book value or carrying value of the asset is more than the recoverable value of asset, then…

Q: What element must be present when determining if an asset is a depreciating asset?   a. An asset…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…

Q: Which one of the following tangible fixed assets would not normally be ?depreciated Option 1…

A: Tangible fixed assets are those fixed assets which have physical appearance.

Q: Discarding Unproductive assets will -------- EVA a. Improve b. Reduce c. Maintain d. No Effect

A: Economic Value Added is equal to Net Operating Profit after tax minus Capital invested * WACC

Q: Find the FASB ASC reference that explains how to measure an asset's impairment loss.

A: ASC- 360 provides guidance on accounting for the impairment or disposal of long-lived assets. The…

Q: Which asset never depreciates in value?

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Under IAS 36 Impairment of Assets, impairment test for an individual asset requires that the…

A: IAS 36 provide for the impairment of assets and states that assets must not be carried in balance…

Q: give the definition, recognition, measurement and derecognition of Impairment of assets.

A: impairment of assets Definition An asset is stated "impaired" when its Market value (MV)less than…

Q: Why FASB treat the spending on the search and development as expense why it can’t be treated as long…

A: Accounting Principles: Accounting principles are the regulations and criteria that businesses must…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: An asset is said to be fully depreciated when:

A: An  provided economic benefit these are creating value of addition story enhance the profit…

Q: angible assets have all of the following characteristics, except: O they provide benefits to current…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: True or False Replacement ends depreciation

A: Replacement Cost pays the dollar amount needed to replace damaged personal property or dwelling…

Q: A company could change their intention of use for an intangible asset resulting in the asset no…

A: Yes, a company can change its intention of use for an intangible assets, which may impact how it is…

Q: A loss on impairment of an intangible asset under IFRS is the asset's: a. carrying amount less the…

A:

Q: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…

A: Depreciation is less  in the value of asset. depreciation is a natural phenomenon in which the value…

Q: Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: ssets intended to be held and used for ircumstances except luctive purposes may suffer from…

A: Impaiment of Asset seeks  to ensure that an entity's assets are not carried at more than their…

Q: Which of the following is not a fundamental issue in accounting for property, plant and equipment?…

A: International Accounting Standards IAS are the accounting standards  issued by International…

Q: Nonresidential real and residential rental property depreciated using MACRS are not subject to…

A: Nonresidential real and residential rental property depreciated using MACRS are not subject to…

Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?

A: Estimates of assets:  Estimate of assets is the estimated worth of assets of original worth of…

Q: What reporting is appropriate for a loss contingency that does not qualify for recording at the…

A: Introduction: A contingency arises when a situation has to be handled in the future but whose…

Q: Which should be debited when depreciating a leased asset? a. Lease Liability b. Non-current Asset c.…

A: Answer-  d . Depreciation expense Depreciating a leased asset is similar to a purchased fixed asset…

Q: The depletion expense is

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…