alleryStart learning →When is an asset impaired under AS 28?
AMarket value is below original cost
BCarrying amount exceeds recoverable amount
CRecoverable amount exceeds selling price
DDepreciation exceeds the budgeted charge
Answer & Solution
Correct answer: B. Carrying amount exceeds recoverable amount
Impairment is tested against recoverable amount, not original cost, so the asset is impaired once the carrying amount is higher than recoverable amount.
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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: