Start learning →

CA Final Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets — practice questions

Explore 93 free Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

Practise Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets with Quill →

Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets questions and exercises with answers

Showing questions 1–30 of 93.

Under Ind AS 36, an asset's 'recoverable amount' is the:Read the answer and worked solution →Under Ind AS 36, an asset is impaired when its carrying amount exceeds its what?Read the answer and worked solution →An impairment loss under Ind AS 36 is the excess of an asset's carrying amount over its what?Read the answer and worked solution →Value in use under Ind AS 36 is best described as which of these?Read the answer and worked solution →When must indications of impairment be assessed under Ind AS 36?Read the answer and worked solution →Which intangibles must be tested for impairment every year?Read the answer and worked solution →An annual test of an indefinite life intangible must be done at what timing?Read the answer and worked solution →Impairment of inventories is governed by which Ind AS rather than Ind AS 36?Read the answer and worked solution →Impairment of ordinary financial assets such as trade receivables falls under which Ind AS?Read the answer and worked solution →Non-current assets classified as held for sale are outside Ind AS 36 because they are covered by which standard?Read the answer and worked solution →Which is an external impairment indication?Read the answer and worked solution →A rise in market interest rates is an impairment indicator mainly because it can affect which input?Read the answer and worked solution →Is the list of impairment indications in Ind AS 36 exhaustive?Read the answer and worked solution →If either fair value less costs of disposal or value in use exceeds carrying amount, what follows?Read the answer and worked solution →Which costs are deducted in fair value less costs of disposal?Read the answer and worked solution →Costs of disposal under Ind AS 36 exclude which two items?Read the answer and worked solution →In measuring value in use, cash flow projections from approved budgets should normally cover at most how many years?Read the answer and worked solution →How are cash flows beyond the budget period extrapolated?Read the answer and worked solution →The extrapolation growth rate must not exceed the average growth of what?Read the answer and worked solution →Which item is excluded from value in use cash flows?Read the answer and worked solution →The discount rate in the value in use calculation must be which kind of rate?Read the answer and worked solution →Which statement about inflation in value in use is correct?Read the answer and worked solution →Foreign currency value in use is translated at which rate?Read the answer and worked solution →An asset group with an active market for its output is treated as what?Read the answer and worked solution →A cash-generating unit is the smallest identifiable group of assets generating cash inflows that are what?Read the answer and worked solution →When is recoverable amount found for the cash-generating unit?Read the answer and worked solution →Cash-generating units should be identified how from period to period?Read the answer and worked solution →A goodwill testing unit cannot be larger than what?Read the answer and worked solution →A unit with goodwill is impaired. The loss first reduces what?Read the answer and worked solution →How is the loss left after goodwill spread over other assets?Read the answer and worked solution →

Worked practice questions

Under Ind AS 36, an asset's 'recoverable amount' is the:

  1. HIGHER of fair value less costs of disposal and value in use
  2. Value in use only
  3. Fair value less costs of disposal only
  4. LOWER of fair value less costs of disposal and value in use
Show answer and solution

Correct answer: A. HIGHER of fair value less costs of disposal and value in use

Recoverable amount = max(FVLCTS, VIU). The rational decision-maker would recover the asset by whichever route (sale or use) yields more. Impairment is recognised when carrying amount > recoverable amount.

Open this question →

Under Ind AS 36, an asset is impaired when its carrying amount exceeds its what?

  1. Residual value
  2. Depreciable amount
  3. Original cost
  4. Recoverable amount
Show answer and solution

Correct answer: D. Recoverable amount

Impairment exists when the amount at which the asset is carried is more than the amount that can be recovered through use or sale.

Open this question →

An impairment loss under Ind AS 36 is the excess of an asset's carrying amount over its what?

  1. Original cost price
  2. Net realisable value
  3. Recoverable amount
  4. Scrap value of asset
Show answer and solution

Correct answer: C. Recoverable amount

The loss is measured as carrying amount minus recoverable amount when the former is higher.

Open this question →

How to practise

  1. Choose a Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Financialreporting topics

Ind AS 116 LeasesInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment PropertyInd AS 103 Business Combinations