the lower of its carrying amount on the basis that it had never beenclassified as held for sale and its recoverable amount
the higher of its carrying amount on the basis that it had never beenclassified as held for sale and its recoverable amount
Question 2 - C
IFRS5 para 27 in effect requires an entity ceasing to classify an asset as heldfor sale to remeasure it as if it had never been held for sale, subject to animpairment test (the recoverable amount test) at that date.
A brand name that was acquired separately should initially be recognized ,according to IAS38
(select one answer)
either cost or fair value at the choice of the acquirer
Question 5 - D
IAS38 para 24 states that an intangible asset should be recognised initially atcost.
The Naylor Company has determined that it needs to recognise animpairment loss on each of two non-current assets; plant and land. Therelevant amounts are as follows:
Original costCU700,000 CU1,400,000Previous revaluations Nil CU450,000Existing carrying amount CU700,000 CU1,850,000Impairment loss to be recognised in year CU200,000 CU300,000According to IAS36
Impairment of assets
, how should each of the impairmentlosses be recognised?
In profit or loss In profit or loss
In profit or lossIn other comprehensive income
In other comprehensive incomeIn profit or loss
In other comprehensive incomeIn other comprehensive income
Question 9 - B
IAS36 paras 60-61 state that impairment losses on assets that have not beenrevalued are recognised in profit or loss. Impairment losses on revaluedassets are treated as a revaluation decrease.
The Snowfinch Company is closing one of its operating divisions, and theconditions for making restructuring provisions in IAS37
Provisions,contingent liabilities and contingent assets
have been met. The closurewill happen in the first quarter of the next financial year. At the currentyear end, the company has announced the formal plan publicly and iscalculating the restructuring provision. Which ONE of the following costsshould be included in the restructuringprovision?
Retraining staff continuing to be employed
Relocation costs relating to staff moving to other divisions