alleryStart learning →After an impairment loss, depreciation in future periods is based on the:
AOriginal cost spread over the old life
BHighest value in use ever estimated
CNet selling price at the date of purchase
DRevised carrying amount over remaining life
Answer & Solution
Correct answer: D. Revised carrying amount over remaining life
Depreciation is adjusted so that the reduced carrying amount, less residual value, is spread systematically over the remaining life.
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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: