alleryStart learning →To avoid double counting, estimates exclude outflows on:
ACosts of maintaining the asset
BItems already recognised as liabilities
COverheads allocated consistently
DCosts of preparing asset for use
Answer & Solution
Correct answer: B. Items already recognised as liabilities
Payables, pensions and provisions already sit on the balance sheet, so counting their outflows again would double count.
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: