CAF-1 · Chapter 5 · Question 4 of 15
Under IAS 36, when is an asset considered to be impaired?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) When its carrying amount exceeds its recoverable amount.
Explanation
An asset is impaired if its carrying amount exceeds the amount to be recovered through use or sale (recoverable amount).
More IAS 36 Impairment of Assets MCQs
- Q6Which of the following assets is OUTSIDE the scope of IAS 36 Impairment of Assets?
- 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?