alleryStart learning →Machine soon to be sold; use flows negligible; NSP below carrying. Result?
AAn impairment loss on the machine
BNo loss as the line is sound
CThe loss is deferred till sale
DLoss is set against reserves
Answer & Solution
Correct answer: A. An impairment loss on the machine
With negligible use cash flows, value in use is close to net selling price, so recoverable amount can be found for the machine and the shortfall is a loss.
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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: