Impairment loss is a situation when Select one: a. Carrying amount of an asset is greater than recoverable amount of it. b. Carrying amount of an asset is smaller than that of recoverable amount of it. c. Carrying amount of an asset is equal to recoverable amount of it. d. Correct option is not listed

Q: The book value of a depreciable asset is       A. The original cost of the asset.       B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: Which of the following statements is not correct?   Multiple Choice   The cost less the salvage…

A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

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: 1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount…

A: Since, you have posted more than one question, we will answer the first question for you. If you…

Q: Statement 1: In impairment loss, the discount rate being used is the current pretax rate that…

A: Ans. While computing impairment loss it is necessary that the cash flows are adjusted and multiplied…

Q: The term that applies when an intangible asset is expensed over time rather than fully expensed at…

A: Any tangible fixed asset purchased has a fixed life throughout which it has to be used. Over the…

Q: The difference between cost of the asset and residual value is known as a . Depletion b . Salvage…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: An asset is impaired if: O a. The amount to be recovered through use (or sale) of the asset exceeds…

A:

Q: If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying…

A: Impairment of an asset is required when there are indication that an impairment loss may have…

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

A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…

Q: Which of the following is not a factor in selecting a depreciation method? a. salvage value b.…

A: Depreciation is charged on cost of assets on annual basis for repair and maintenance costs and…

Q: An investment property should be measured initially at O A. Cost. B. Cost less accumulated…

A: Investment property is a kind of asset that is part of the balance sheet of the company. It means…

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: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.

A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…

Q: The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale are…

A: The asset is regarded as the investment of money by the investor in something which makes a profit…

Q: What element must be present when determining if an asset is a depreciating asset?   a. An asset…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…

Q: Which of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: Which of the following statements is false? (a) Financial Instruments are intangible assets (b)…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The existing asset does not have sufficient capacity to meet the present demands that are placed on…

A: Fixed asset: It can be defined as an asset that is used by the business in its production activities…

Q: The book value of an asset is equal to the: a. asset's market value less its historical cost b.…

A: Book value is the net value of the assets that appears in balance sheet. it is calculated by…

Q: If an asset is written down because of an impairment, in USA GAAP, it cannot be written back up…

A: PROVISIONS FOR REVERSAL OF IMPAIRMENT LOSS UNDER THE FOLLOWING STANDARD :- USA GAAP IFRS…

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: If an asset that is not fully depreciated is sold or disposed, but the fixed asset records are not…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: Under IAS 36 Impairment of Assets, impairment test for an individual asset requires that the…

A: IAS 36 provide for the impairment of assets and states that assets must not be carried in balance…

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 historical cost principle provides that: Select one: O a. the recorded amount of an acquired…

A: Accounting principles are the rules required to be followed by the company in the process of…

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: 1. The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale are…

A: An asset is depreciated over a period of life based on estimates. Carrying amount, also known as…

Q: Vhen evaluatin Ing whethe netner an asset has been impaired, th the higher of O Initial Cost and…

A: 1) Impairment loss is the amount by which the carrying amount of an asset is exceeds its recoverable…

Q: (a)  When would the disposal of a long-term asset result in no gain or loss? (b)  When would the…

A: Long-term assets can be defined as those assets which are held by an investor for a period of more…

Q: Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance…

A: The basic concept of lease contract is there are mainly two parties involving in this lease…

Q: What is the largest estimated possible loss that could arise in a safe payment schedule? no need to…

A: the largest estimated possible loss that could arise in a safe payment schedule are the value of…

Q: A loss on disposal

A: The loss on disposal arose when the asset is sold for less than the book value of the asset. The…

Q: Which of the following situations indicates that an asset is impaired?a. The net book value of the…

A: Impairment: It can be defined as a significant reduction in the recoverable value of the goodwill…

Q: Salvage value is: O Also called residual value O Also called scrap value O An estimate of the…

A: Solution: salvage value is the value of an asset remaining after it has been fully depreciated. It…

Q: For financial accounting purposes, depreciation expense represents the decreasein an asset's fair…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which method of deprecaution is used when the cost of an asset is written off in equal amounts over…

A: There are number of methods of depreciation.

Q: Under the impairment of assets, value-in-use is *   a. The undiscounted present value of future…

A: The impairment loss is recorded as an expense in the income statement of the company.

Q: In a replacement analysis, the market value of the currently owned asset a. does not impact the cash…

A: With the passage of the time, old assets are outdated and more cost is incurred to maintain. So, it…

Q: Which of the following is not a capital expenditure decision Select one: a. Improvement in fixed…

A: SOLUTION- AN EXPENSE WHICH INVOLVES REPLACEMENT OF THE ENTIRE ASSET IS A CAPITAL EXPENDITURE . WHILE…

Q: The fair value loss impairment model O calculates the impairment loss as the difference between the…

A: As per IFRS 9 on financial instruments the investment should record impairment as per the impairment…

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: One factor that is not considered in determining the useful life of an intangible asset is* Residual…

A: Hi Student Since there are multiple questions we will answer only first question. If you want…

Q: Which is not an expense? A. costs of goods sold or services rendered B. loss on disposal of a…

A: Expense means the amount which is spent to for business purpose or for running the business. Expense…

Q: Which of the following factors is NOT considered in determining the useful life of an intangible…

A: Intangible assets are assets that can not be seen or touched. Their effect can only be felt like…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.