Under the IAS 16, there is an impairment loss of property, plant and equipment if?
Q: In accordance with HKAS 36 ‘Impairment of Assets’ which of the following statements are true? (1)…
A: As per the Hong Kong Accounting Standard 36 deals with Impairment of Assets .Impaired Assets is an…
Q: Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as:…
A: When a gain or loss occurs due to a infrequent event and which are unusual in nature, then such gain…
Q: Discuss with examples TWO (2) indicators that may require an entity to reduce the value of their…
A: impairment of assets - impairment loss refers to a reduction in the value of assets of the company,…
Q: Do U.S. GAAP and IFRS (under IAS No. 39) differ in how they account for otherthan- temporary…
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: Explain in your own words the key objective of IAS36 – Impairment of assets.
A: An impaired asset is one with a market worth less than the value shown on the balance sheet. When an…
Q: Explain the reason for not reporting property and equipment at fair value except in specified…
A: Introduction: Fair value is evaluated utilizing a sound approach that is unbiased and based on…
Q: The entry to record goodwill impairment loss must include:
A: Impairment: Impairment is the sudden loss in the value of an asset other than depreciation. In other…
Q: Which of the following items qualify as an intangible asset under IAS 38? None of them Advertising…
A: Intangible assets are non monetary assets, that cannot be seen and touched physically. IAS38 sets…
Q: Which of the following items qualify as an intangible asset under IAS 38? a- Advertising and…
A: As per IAS 38, Intangible assets, The intangible asset is an identifiable asset with no physical…
Q: According to PAS 36 Impairment of Assets, the recoverable amount of an asset is determined only if…
A: SOLUTION- EXPLANATION- IAS 36 IMPAIRMENT OF ASSETS SEEKS TO ENSURE THAT AN ENTITY'S ASSETS ARE NOT…
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: If an entity recognizes in the carrying amount of an item of property, plant and equipment the cost…
A: Derecognition:- If an entity recognizes in the carrying amount of an item of property, plant, and…
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: How do the impairment test for indefinite-lived intangible assets and definite-lived intangible…
A: Impairment is the permanent reduction in the value of the asset. Circumstances that indicate…
Q: Recovery of impairment is recognized under IFRS for all the following except: a. patent held for…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: When the carrying amount of an asset exceeds its recoverable amount, the asset is impaired. the…
A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: This question related with MFRS 116 (property,plant and equipment).
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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: All of the following are true regarding recovery of impairments for intangible assets except а.…
A: Intangible assets are those assets which lacks physical existence and provide long term benefits to…
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: In accordance with IAS 36 Impairment of Assets, which one of the following is an indicator that an…
A: Solution: In accordance with IAS 36 Impairment of Assets, "a decline in the asset’s market value, as…
Q: Inventor's life is not considered in determining the useful life of an intangible asset. TRUE OR…
A: Intangible assets are those assets which does not have any physical existence. That means…
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: Which statement on property, plant and equipment (PPE) is true? * a. PPE items may include…
A: The assets of the company will provide the future economic benefits for the company. If the company…
Q: What is the carrying value of Land after the recognition of the impairment loss?
A:
Q: If a company purchases a limited-life intangible asset, they _____________ amortize the asset and…
A: Intangible assets are those that are not monetary assets and cannot be touched or seen. These arise…
Q: All of the following are true regarding the revaluation model allowed under GAAP except;
A: The revaluation model gives a business the option of carrying a fixed asset at its revalued amount.…
Q: an impairment of a non current asset held for sale:
A: Impairment means generally calculated as Carrying amount minus recoverable value. Any impairment…
Q: One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant &…
A: Definition: IAS 16 deals provide a framework for the accounting treatment of property plant and…
Q: In accordance with IAS 36 Impairment of Assets, which of the following statements is correct? 1)…
A: IAS 36 measures and discusses the processes that the assets of the Company should not be valued more…
Q: Whish of the following asset is covered under IAS 36-Impairment of assets. O a. Inventory. O b.…
A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…
Q: Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as:…
A: IFRS: International Financial Reporting Standards are the principle-based accounting standards.
Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…
A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…
Q: PAS 16 defines depreciation as “the decrease in the value of an asset.”
A: With the passage of time, the value of assets goes on decreasing due to various reasons such as…
Q: intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B.…
A: Intangible Asset: An intangible asset is a distinguishable non-monetary item that does not have a…
Q: How do SMEs account for impairment losses on CGUs? a. The impairment loss is charged first to…
A: The carrying amount of the asset is the amount of asset that is reported on the balance sheet after…
Q: Which of the following statements is correct? a. Both IFRS and GAAP permit revaluation of…
A: Generally Accepted Accounting Principles (GAAP):Generally Accepted Accounting Principles are the…
Q: related to use of this equipment. a. Is the equipment impaired at July 1, 2020? Explain. b. If the…
A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.
Q: Which statement is incorrect regarding “components depreciation”? a. Each part of an item of…
A: Component depreciation is a type of depreciation which is charged on the components of the fixed…
Q: what alternatives does FASB ASC Topic 305 provide in assessing the impairment?
A: The financial Accounting standard board provides an an accounting alternative expected to less the…
Q: The question is about MFRS 116 (property,plant, and equipment)
A: Income statement:- Income statement is one of the main financial statement which shows the total…
Q: The carrying amount of an item of property, plant and equipment shall be derecognized 1. On disposal…
A: Assets- A company has a lot of resources, both monetary and non-monetary. However, only resources…
Q: 1. Find the proper FASB ASC citation that provides guidance on the measurement of an impairment loss…
A: Measurement of impairment loss for long-lived asset using two steps:Step1: “The entity tests the…
Q: 16. Each of the following is an example of an asset's involuntary conversion except A) a…
A: The appropriate answer is (C). Sale of a fully depreciated asset does not form part of involuntary…
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: Which of the following statement(s) is (are) true? (i) An intangible asset is impaired if the…
A: Impairment Loss = Carrying amount - Recoverable amount Recoverable amount is higher of the…
Q: Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS,…
A: The answer
Under the IAS 16, there is an impairment loss of property, plant and equipment if?
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Solved in 2 steps
- Briefly explain the difference between U.S. GAAP and IFRS in the measurement of an impairment loss for property, plant, and equipment and finite-life intangible assets.Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: B . continuing operations.Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: A . an extraordinary item.
- Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an impairment of an item of property, plant and equipment beOne of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic.?1) How should any claim for compensation from third parties for impairment be accounted for?2) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?3) How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?4) What additional disclosures should be made if property, plant & equipment are stated at revalued amounts?5) Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model? How should this change be accounted for in the financial statements?One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. How should any claim for compensation from third parties for impairment be accounted for? How should the recoverability of the carrying amount of property, plant & equipment be accounted for? How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?
- Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.Compare and contrast US GAAP and IFRS in measuring an impairment loss for property, plant, and equipment as well as finite-life intangibles.Describe the impairment of property, plant, and equipment and intangible assets
- PAS 16 defines depreciation as “the decrease in the value of an asset.”For which of the following does U.S. GAAP permit recognition of recovery of impairment? Group of answer choices patents held for use machinery used in operations none of these goodwillWrite the definition, recognition, measurement and derecognition of Impairment of assets.
