CAF-1 · Chapter 5 · Question 9 of 15
If an asset is carried at a revalued amount under IAS 16, how is an impairment loss treated?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Treated as a revaluation decrease recognized in other comprehensive income up to the available revaluation surplus.
Explanation
An impairment loss on a revalued asset is recognized in other comprehensive income to the extent it does not exceed the revaluation surplus for that asset.
More IAS 36 Impairment of Assets MCQs
- Q11When reversing an impairment loss for an asset (other than goodwill), what is the upper limit for the new carrying amount?
- 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?