Home › CA Final › financialreporting › Ind AS 36 — Impairment Loss Recognition, CGU Identification, Goodwill Allocation to CGUs, Disposal within CGU › After an impairment loss is recognised, the depr…
After an impairment loss is recognised, the depreciation/amortisation charge for the asset in FUTURE periods is:
ADoubled to recover the loss
BAdjusted to allocate the REVISED carrying amount (less any residual value) on a systematic basis over the remaining useful life
CReduced to zero until reversal
DUnchanged
Answer & Solution
Correct answer: B. Adjusted to allocate the REVISED carrying amount (less any residual value) on a systematic basis over the remaining useful life
Post-impairment, depreciation is reset to spread the revised carrying amount over the remaining life — i.e. new schedule = (revised CA − residual value) / remaining useful life.
Related questions
An impairment loss on a CGU is allocated to its assets — but the carrying amount of any inAn entity's CGU testing for the prior period included corporate-asset CA but the current pAn entity sells the output of an asset partially internally and partially externally. An aA bus company runs 5 routes under a municipal contract that requires minimum service on eaIf the initial allocation of goodwill acquired in a business combination cannot be COMPLETAn entity reorganises its reporting structure: CGU A's goodwill is being redistributed acrAn entity disposes of an OPERATION within a CGU to which goodwill was allocated. The goodwEntity A acquires Entity B for ₹50 mn. FV of identifiable net assets ₹35 mn; allocated ₹25