CAF-6 · Chapter 10 · Question 15 of 15
The entire carrying amount of an investment in an associate is tested for 'Impairment' as a single asset if:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Only when there is an objective indicator of impairment.
Explanation
IAS 28 requires checking for indicators of impairment before performing a full impairment test (unlike goodwill in a subsidiary which is tested annually).
More Associates (IAS 28) MCQs
- Q2Significant influence is generally presumed to exist if the investor holds, directly or indirectly, what percentage of the voting power of…
- Q3Which accounting method is used to account for investments in associates in consolidated financial statements?
- Q4Under the 'Equity Method', the investment is initially recognized at:
- Q5When the associate pays a 'Dividend' to the investor, how is it recorded under the Equity Method?
- Q6Which of the following is NOT an indicator of Significant Influence?