CAF-1 · Chapter 5 · Question 10 of 15
After an impairment loss is recognized, what must happen to the depreciation charge for the asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is adjusted in future periods to allocate the revised carrying amount over the remaining useful life.
Explanation
The depreciation charge must be adjusted in future periods to allocate the asset's revised carrying amount on a systematic basis over its remaining useful life.
More IAS 36 Impairment of Assets MCQs
- Q12Which of the following assets MUST be tested for impairment annually, irrespective of whether there is any indication of impairment?
- Q13When calculating the value in use, which of the following should NOT be included in the estimated future cash flows?
- Q14If an asset's fair value less costs of disposal is found to be greater than its carrying amount, what is the next required step under IAS…
- Q15What type of discount rate should be used when calculating the value in use of an asset?
- Q1Under IAS 36, an asset is impaired when its carrying amount exceeds its 'recoverable amount'. How is the recoverable amount defined?