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An impairment loss on a CGU is allocated to its assets — but the carrying amount of any individual asset cannot be reduced below the HIGHEST of which three floors?
AFair value less costs of disposal, value in use (if determinable), and zero
BCost, depreciation, residual value
CTax base, depreciable amount, residual
DOriginal purchase price, prior period CA, current CA
Answer & Solution
Correct answer: A. Fair value less costs of disposal, value in use (if determinable), and zero
Ind AS 36 paragraph 105: an asset's CA cannot be reduced below the highest of (a) FVLCTS (if determinable), (b) VIU (if determinable), or (c) zero. Any 'unallocated' impairment from such floors is redistributed to other assets in the CGU pro-rata.
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