Explain the accounting treatment in the event that an impairment review of a non-current asset which has been previously revalued with a revaluation surplus revealed that the non-current asset has suffered an impairment loss.

Q: An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held…

A: If the noncurrent asset is classified as held for sale, it would be recorded in the income from…

Q: Company further seeks your assistance to select the appropriate method of depreciation either to go…

A: Step 1 Depreciation is the written down in the value of the assets.

Q: Changes in amortization method, useful life, and residual value are changes in accounting estimates…

A: Changes in accounting estimates include: Changes in the useful life of assets Changes in the…

Q: The measurement of revaluation model is at: Fair value at the date of acquisition less any…

A: As per the INTERNATIONAL ACCOUNTING STANDARD Revaluation concept the measurement of Revaluation…

Q: The following statements are based on PFRS 5 – “Non-current Assets Held for Sale and Discontinued…

A: The objective of PFRS 5 standard is to specify the accounting for assets held for sale, discontinued…

Q: Which of the following must be recorded in the accounting records when an asset that is NOT held for…

A: As given in the question non current assets is derecognized, which means sold or no more useful.

Q: Which of the following events could not coincide with the recognition of an expense? O The…

A: Expenses means the amount spent on running the business. Expense will decrease our profits and shown…

Q: The qualification of an asset to be classified as held for sale after reporting period but before…

A: Solution: The qualification of an asset to be classified as held for sale after reporting period but…

Q: key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount…

A: As per IFRS 5 a non-current asset or disposal group is classified as held for sale if its carrying…

Q: Explain the conditions under which assets and liabilities are derecognized

A: The answer for the theory question on the conditions under which assets and liabilities are…

Q: Under IFRS, when an entity chooses the revaluation model as its accounting policy for measuring…

A:

Q: Under the reporting requirements for impaired assets, impairment losses for assets to be held and…

A: Under the reporting requirements for impaired assets, impairment losses for assets to be held and…

Q: Explain how asset impairment differs from depreciation, depletion, and amortization. How do…

A: Depreciation,Depletion and amortization records the usage of a fixed asset over a period of time and…

Q: When an impairment loss occurs, the carrying amount of the asset should be reduced to its   a) ©…

A: Impairment: It implies to an increase in the fixed asset's carrying value in relation to the price…

Q: Which of the following accountin justification for the fact that the c non-current asset is reported…

A: Solution: "Going Concern" accounting concept  provides justification for the fact that the carrying…

Q: Explain how losses on intangible assets that are impaired should be recorded in income.

A: When the carrying amount of the asset is less than the recoverable Amount it should be provided for…

Q: Find the FASB ASC reference that explains how to measure an asset's impairment loss.

A: ASC- 360 provides guidance on accounting for the impairment or disposal of long-lived assets. The…

Q: In accordance with IAS 36 Impairment of Assets, which of the following statements are true?…

A: Assets are described as those resources which are owned or acquired by the business in order to use…

Q: Which of the following is correct when recording the disposal of equipment for a gain? Group of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Question 1 Which of the following is not correct in relation to the reversal of an impairment loss…

A: Step 1 Impairment of the assets means the downward revaluation of the assets; whenever the carrying…

Q: The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed…

A: The loss of impairment is recognized in the income account and the reversal of the impairment loss…

Q: Identify the factors that are relevant in determining the annual depreciation charge, and explain…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses means those expenses which pertains to current period and recorded in the…

Q: Explain the accounting issues related to asset impairment.

A: Asset impairment: Asset impairment emerges when there is a sudden drop in the fair value of an asset…

Q: Which of the following best describes the independent auditor's approach to obtaining satisfaction…

A: Business organizations are required to charge the depreciation expense so that the assets are shown…

Q: Explain the appropriate accounting treatment required when a change in depreciation, amortization,…

A: Change in inventory method: Change in inventory method is said to be the difference between the…

Q: A company has decided to change its depreciation method to better reflect the pattern of use of its…

A: As per Generally accepted accounting principles, using an appropriate method for applying…

Q: Explain the meaning of an impairment of an asset. Provideseveral examples. What accounting event…

A: Impairment of assets: Impairment of the asset arises when the current market value of the asset…

Q: Identify the accounting issues related to asset impairment.

A: Asset impairment emerges when there is an abrupt drop in the fair value of an asset underneath its…

Q: Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: According to PFRS 9, impairment gain

A: As per PFRS9 impairment losses and impairment gains (in the case of purchased or originated…

Q: Explain how losses on impaired intangible assets shouldbe reported in income.

A: Intangible Assets: An intangible asset refers to the good name and reputation of an organization…

Q: ide a

A: As per the IAS 36 Impairment of asset we need to identify the asset that may be impaired and for…

Q: When an item of property, plant and equipment is derecognised, the treatment of any revaluation…

A: When a asset is revalued and if there is any revaluation gain then such revaluation gain should be…

Q: If the criteria are met after the end of reporting period, an undertaking shall: A. Classify a…

A: Following is the answer to the given question

Q: utline the accounting tre

A: Although IFRS 9 Financial Instruments was first issued in November 2009, it has been updated on a…

Q: Choose the correct. Under IFRS, when an entity chooses the revaluation model as its accounting…

A: When an entity chooses the revaluation model as its accounting policy for measuring property, plant,…

Q: What is an impairment loss?   A ) The amount by which the carrying amount of an asset exceeds the…

A: An impairment loss is a recognized decrease in the par value of an asset caused by a deterioration…

Q: ame depreciation methods that deduct residual value before an asset is deprecia

A: Solution: Following are depreciation methods that deduct residual value before an asset is…

Q: According to PFRS 9, which of the following represents a cessation of a financial asset’s impairment…

A: According to the above question  option 1 is the correct answer.

Q: FASB recently issued a Proposed Accounting Standard Update on impairment for intangible assets.…

A: Those amendments were in response to concerns expressed by private companies and their stakeholders…

Q: Depreciation expense under the invenroty system is a. Based on cost minus residual value b.…

A: Depreciation = (Cost - Residual value) / Life of asset

Q: If the criteria are met after the end of reporting period, an undertaking shall: A. Classify a…

A: Undertaking normal time period is of 12 months. An undertaking may require to record a financial…

Q: Per PAS 8, it is an adjustment of the carrying amount of an asset or a liability., or the amount of…

A: As per PAS 8, "A change in accounting estimate is an adjustment of the carrying amount of an asset…