alleryStart learning →With large headroom and no changes, the enterprise:
AMust re-estimate it every year
BNeed not re-estimate recoverable amount
CMust revalue the asset upward now
DMust change the depreciation method
Answer & Solution
Correct answer: B. Need not re-estimate recoverable amount
Materiality applies: a previously large headroom with no eliminating events means the estimate need not be repeated.
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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: