Fixed Asset Impairment

Question 1

Calculation of impairment under U.S. GAAP

Answer 1

compare the carrying amount of long lived asset. if it is less than undiscounted future cash flow from asset than it is impaired.

Question 2

Calculation of impairment under IFRS

Answer 2

If carrying value exceeds recoverable amount than impaired. Recoverable amount is fair value less cost to sell.

Question 3

In GAAP subsequent reversal of impairment allowed

Answer 3

No, subsequent reversal in prohibited.

Question 4

In IFRS asset’s value in use and present value of future cash flows is same thing

Answer 4

Yes

Question 5

fair value is $ 10,600.00 and present value of future cash flow is $ 10950.00 Which amount will be considered.

Answer 5

$ 10, 950.00

Question 6

In GAAP how impairment loss is shown/

Answer 6

Component of income in continuing operation before tax.