alleryStart learning →In allocating a unit's loss, an asset is not reduced below the highest of:
ACost, accumulated depreciation and zero
BCost, scrap value and one rupee
CNet selling price, value in use and zero
DSelling price, replacement cost and one
Answer & Solution
Correct answer: C. Net selling price, value in use and zero
No asset may be written below the highest of its net selling price, value in use and zero; any shortfall passes to the other assets pro rata.
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: