CAF-1 · Chapter 5 · Question 7 of 15
Which of the following represents an INTERNAL indication that an asset may be impaired?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Evidence of obsolescence or physical damage to the asset.
Explanation
Evidence of obsolescence or physical damage is an internal source of information indicating potential impairment.
More IAS 36 Impairment of Assets MCQs
- 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?
- 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?