alleryStart learning →A later rise in fair value less costs to sell is a gain up to:
ARevaluation surplus balance
BFull amount of the increase
COriginal cost of the asset
DCumulative impairment loss
Answer & Solution
Correct answer: D. Cumulative impairment loss
Gains are capped at the cumulative impairment loss, so the asset is never written above what it would otherwise have carried.
Keep practising Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations
Browse all Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations questions for CA Final, or explore more Financialreporting topics.
Related questions
A gain or loss on a held for sale asset not recognised by the sale date is recognised:A held for sale asset must be available for immediate sale subject only to terms that are:A held for sale asset must be marketed at a price that is:Highly probable assessment considers the probability of:Where an asset is part of a disposal group, the measurement rules apply to:A disposal group includes goodwill when it is a cash-generating unit to which goodwill hasA disposal group impairment loss reduces assets in the order set out in which standard?Non-current assets are reclassified as current only when they: