When the carrying amount of an asset exceeds its recoverable amount, the asset is impaired. the excess represents impairment loss. there is a need to write-down the asset’s carrying amount to its recoverable amount. d. all of these 2. According to PAS 36 Impairment of Assets, the recoverable amount of an asset a. is determined only if there are indications that the asset is impaired. b. is determined at least annually. c. need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and goodwill acquired in a business combination which are required to be tested for impairment at least annually. d. is determined only if there are indications that the asset is impaired and need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and goodwill acquired in a business combination which are required to be tested for impairment at least annually.
When the carrying amount of an asset exceeds its recoverable amount, the asset is impaired. the excess represents impairment loss. there is a need to write-down the asset’s carrying amount to its recoverable amount. d. all of these 2. According to PAS 36 Impairment of Assets, the recoverable amount of an asset a. is determined only if there are indications that the asset is impaired. b. is determined at least annually. c. need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and goodwill acquired in a business combination which are required to be tested for impairment at least annually. d. is determined only if there are indications that the asset is impaired and need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and goodwill acquired in a business combination which are required to be tested for impairment at least annually.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- When the carrying amount of an asset exceeds its recoverable amount,
- the asset is impaired.
- the excess represents impairment loss.
- there is a need to write-down the asset’s carrying amount to its recoverable amount.
- d. all of these
2. According to PAS 36 Impairment of Assets, the recoverable amount of an asset
a. is determined only if there are indications that the asset is impaired.
b. is determined at least annually.
c. need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and
d. is determined only if there are indications that the asset is impaired and need not be determined if there are no indications for impairment, except for intangible assets with indefinite useful life, intangible assets not yet available for use, and goodwill acquired in a business combination which are required to be tested for impairment at least annually.
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