alleryStart learning →An impairment loss under AS 28 is the excess of:
ACost over the accumulated depreciation
BNet selling price over the value in use
CCarrying amount over the recoverable amount
DRecoverable amount over the carrying amount
Answer & Solution
Correct answer: C. Carrying amount over the recoverable amount
A loss arises only when the balance sheet figure is higher than what can be recovered, so it equals carrying amount minus recoverable amount.
Keep practising AS 28 Impairment of Assets
Browse all AS 28 Impairment of Assets questions for CA Inter, or explore more Accounting topics.
Related questions
An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: