Home › CA Final › financialreporting › Ind AS 36 — Impairment of Assets: Scope, Recoverable Amount, Indicators, Annual Review Triggers, CGU Concept › An asset's CARRYING AMOUNT under Ind AS 36 is co…
An asset's CARRYING AMOUNT under Ind AS 36 is computed as:
AFair value at year-end
BCost only
CCost less accumulated depreciation/amortisation AND less accumulated impairment losses
DFair value less expected disposal costs
Answer & Solution
Correct answer: C. Cost less accumulated depreciation/amortisation AND less accumulated impairment losses
Carrying amount under Ind AS 36 = cost (or revaluation) − accumulated depreciation/amortisation − accumulated impairment losses. Impairment is then carrying amount minus recoverable amount.
Related questions
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 imInvestor recognises a dividend from a SUBSIDIARY in separate FS. This is an indicator of i