With reference to IAS 36 (Impairment of Assets), identify any four circumstances that may indicate that an asset has been impaired

      

With reference to IAS 36 (Impairment of Assets), identify any four circumstances that may indicate that an asset has been impaired

  

Answers


Wilfred
i) There has been a significant decrease in the market value of the asset in excess of the normal process of depreciation.
ii) There has been a significant adverse change in either the business or the market in which the asset is involved.
iii) Evidence is available that indicates that the performance of the asset will be worse than expected.
iv) Where an asset is valued in terms of value in use and the actual cash flows are less than the estimated cash flows before discounting.
v) Market interest rates or other market rates of return on investment have increased during the period and the increases are likely to decrease materially and asset’s recoverable amount.
Wilfykil answered the question on February 8, 2019 at 06:56


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