Answer (A) is correct . Under IFRS, the entity assesses at each reporting date whether an indication of impairment exists. Given such an indication, IFRS requires a one-step impairment test. The carrying amount of an asset is compared with its recoverable amount. An impairment loss is recognized when the carrying amount exceeds the recoverable amount. Thus, the impairment loss equals the carrying amount minus the recoverable amount.
Answer (B) is incorrect because According to IFRS, inventories, not long-lived assets, are measured at the lower of cost and NRV.
Answer (C) is incorrect because Under IFRS, an impairment loss on a long-lived asset is measured as the difference between the carrying amount of the asset (not historical cost) and its recoverable amount (not value in use). The value in use is one of two possible measures of the recoverable amount.
Answer (D) is incorrect because Under U.S.?GAAP, the first step in the impairment test is to assess whether the carrying amount of an asset may not be recoverable by comparing its carrying amount with the undiscounted expected future cash flows from the asset.
|
