alleryStart learning →A liability for loss exceeding carrying amount arises:
AOnly if another standard requires it
BAlways, for the whole excess amount
COnly for assets that were revalued
DNever, whatever the circumstances
Answer & Solution
Correct answer: A. Only if another standard requires it
The excess over carrying amount becomes a liability only when another Accounting Standard demands it.
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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: