alleryStart learning →Must both net selling price and value in use always be found?
AYes, both are always required
BYes, but only for cash generating units
CNo, only for revalued assets
DNo, if either exceeds carrying amount
Answer & Solution
Correct answer: D. No, if either exceeds carrying amount
If one of the two amounts already exceeds the carrying amount, recoverable amount (the higher) must too, so the asset is not impaired and the other need not be found.
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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: