IND AS 36 - Impairment Of Assets Flashcards
1
Q
In measuring value in use, cash flow projections should be based on the budgets/forecasts covering a maximum period of ————- unless a longer period can be justified.
1: Three years
2: Five years
3 : Ten years
4 : Life of asset which is subject to impairment assessment
A
Five years
2
Q
In case of estimation of cash flows for calculating value in use, future cash flows are estimated in the currency in which they will be generated and then discounted using a discount rate appropriate for that currency. An entity translates the present value using the
at the date of the value in use calculation.
Answer - 1: Closing rate
Answer - 2: Spot exchange rate
Answer - 3 : Average rate
Answer - 4: Incremental borrowing rate
A
Spot exchange rate
