CAF-1 · Chapter 5 · Question 5 of 15
Which of the following is defined as the 'value in use' of an asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The present value of the future cash flows expected to be derived from the asset.
Explanation
Value in use is the present value of the future cash flows expected to be derived from an asset, including its eventual disposal.
More IAS 36 Impairment of Assets MCQs
- Q7Which of the following represents an INTERNAL indication that an asset may be impaired?
- Q8Which of the following represents an EXTERNAL indication of potential impairment?
- Q9If an asset is carried at a revalued amount under IAS 16, how is an impairment loss treated?
- Q10After an impairment loss is recognized, what must happen to the depreciation charge for the asset?
- Q11When reversing an impairment loss for an asset (other than goodwill), what is the upper limit for the new carrying amount?