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An asset's CA is ₹500 lakh; VIU ₹400 lakh; FVLCTS ₹375 lakh. The asset is NOT carried at a revalued amount. Impairment loss and where recognised?
A₹100 lakh charged to P&L (= CA 500 − RA max(400, 375))
BNil
C₹125 lakh charged to P&L
D₹125 lakh in OCI
Answer & Solution
Correct answer: A. ₹100 lakh charged to P&L (= CA 500 − RA max(400, 375))
RA = max(VIU 400, FVLCTS 375) = 400. Impairment = 500 − 400 = ₹100 lakh. Cost-model asset → P&L directly.
Related questions
Identify the statement about CGU disclosure under Ind AS 36 that is INCORRECT.When an impairment loss recognised in a prior period for a CGU is REVERSED:When an impairment loss is allocated within a CGU, the order of allocation under Ind AS 36Multiple CGUs share the SAME key assumption (e.g. growth in a common end market) and the AAn entity's CGU recoverable amount is based on VIU. The discount rate disclosure required An entity uses a SENSITIVITY disclosure when a reasonably possible change in a key assumptWhen projecting cash flows beyond the period covered by management's most recent budgets/fWhen an entity discloses a CGU to which significant goodwill is allocated and recoverable