On April 23, 2021, Charm Company classified a non-current asset held for sale in accordance with IFRS 5 - Non-current Asset Held for Sale and Discontinued Operations. At that time, the asset's carrying amount was P64,000, its fair value was estimated at P48,000 and the costs to sell at P3,800. On June 18, 2021, the asset was sold for net proceeds of P40,000. The company accounts for non-current assets using the cost model. 1.In accordance with IFRS 5, what amount should be included as an impairment loss in Charm Company's statement of comprehensive income for the year ended June 30, 2021? a. 24,000 b. 19,800 c. 16,000 d. 4,200 2. What amount should be reported as loss on disposal in Charm Company's statement of comprehensive income for the year ended June 30, 2021? a. 24,000 b. 19,800 c. 16,000 d. 4.200
On April 23, 2021, Charm Company classified a non-current asset held for sale in accordance with IFRS 5 - Non-current Asset Held for Sale and Discontinued Operations. At that time, the asset's carrying amount was P64,000, its fair value was estimated at P48,000 and the costs to sell at P3,800.
On June 18, 2021, the asset was sold for net proceeds of P40,000. The company accounts for non-current assets using the cost model.
1.In accordance with IFRS 5, what amount should be included as an impairment loss in Charm Company's statement of comprehensive income for the year ended June 30, 2021?
a. 24,000
b. 19,800
c. 16,000
d. 4,200
2. What amount should be reported as loss on disposal in Charm Company's statement of comprehensive income for the year ended June 30, 2021?
a. 24,000
b. 19,800
c. 16,000
d. 4.200
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