CAF-1 · Chapter 5 · Question 8 of 15
Which of the following represents an EXTERNAL indication of potential impairment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The asset's market value declining significantly more than expected.
Explanation
A significant, unexpected decline in an asset's market value is classified as an external source of information indicating impairment.
More IAS 36 Impairment of Assets MCQs
- 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?
- 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…