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Ind AS 36 requires ANNUAL impairment testing (regardless of indicators) for:
AIntangible assets with INDEFINITE useful life, intangibles NOT YET available for use, and GOODWILL acquired in a business combination
BInventory
CAll receivables
DAll property, plant and equipment
Answer & Solution
Correct answer: A. Intangible assets with INDEFINITE useful life, intangibles NOT YET available for use, and GOODWILL acquired in a business combination
Ind AS 36 paragraph 10: three categories require annual testing irrespective of indicators — indefinite-life intangibles, intangibles not yet ready for use, and goodwill from BCs. Other assets need testing only when indicators arise.
Related questions
An asset's CARRYING AMOUNT under Ind AS 36 is computed as:A corporate asset (e.g. HQ building) contributes to CGUs A, B and C. For Ind AS 36 testingINTERNAL source indicators of impairment include all of the following EXCEPT:An asset's value-in-use discount rate is largely insensitive to short-term market rate incAn entity's market capitalisation has dropped below the carrying amount of its net assets.When can an entity use a PRIOR period's recoverable amount calculation as a proxy for the An entity acquired goodwill in a BC DURING the current annual period and the goodwill was An entity tests CGU X (which has allocated goodwill) AND individual assets within X for im