Impairment of Assets Flashcards
1
Q
What should assets NOT be carried at more than?
A
Their recoverable amount
2
Q
What should the recoverable amount be the HIGHER of?
A
Fair value less costs to sell
Value in use
3
Q
Where is an impairment loss shown?
A
In the statement of profit or loss
4
Q
Where is an impairment loss shown if the impairment reverses a previous gain taken to the revaluation surplus?
A
The impairment is taken to the revaluation surplus until it is fully exhausted, then any excess is taken to the profit or loss
5
Q
In a CGU, which 2 categories are usually allocated the impairment loss first?
A
Goodwill, and then other assets
