IAS 36 IMPAIRMENT LOSS

IAS 36 applies to all these except...

• Property, Plant and Equipment

• Investment in subsidiaries

• Goodwill

• Inventories

IAS 36 does not apply to the following except.....

• Defer tax assets IAS 12

• Property, plant and equipment IAS 16

• Financial Assets IAS 39

• Assets held for sale IFRS 5

Recoverable amount of an asset is the ____________________ of its fair value less cost to sell and its value in use.

value in use means discounted present value of future ___________ ______________ expected to arise from an asset or cash generating unit.

What is another term for carrying amount?

• Net Price value

• Fair value

• Recoverable value

• Net Book Value

Impairment losses will arise when the carrying amount of an asset ___________________ its recoverable amount.

The following are the internal indicators of impairment except

• Physical damage to an asset

• Obsolescence of an asset

• Decline in market value

• Significant decline in cash flows to be generated by the asset

If the carrying value of tangible non current assets is higher than recoverable amount, the difference will be known as............

In the situation where fair value less costs to sell is unavailable, then the recoverable amount will be the __________________ .

• carrying amount

• value in use

• none of the above

The impairment loss is recognised immediately in the _______________ as an expense.

• statement of financial position

• statement of profit or loss

• none of the above