Question
Under IFRS, how do you decide whether a long-lived asset is impaired?
Tap to flip
Answer
Impairment exists when carrying amount exceeds recoverable amount.
Tap to flip back
Question
If an asset's carrying amount is 120 and its recoverable amount is 95 under IFRS, what is the financial impact?
Tap to flip
Answer
Recognize a 25 impairment loss.
Tap to flip back
Question
In IFRS impairment testing, what is the recoverable amount?
Tap to flip
Answer
The higher of fair value less costs to sell or value in use.
Tap to flip back
Question
How does the first step of the US GAAP long-lived asset impairment test differ from IFRS?
Tap to flip
Answer
US GAAP uses undiscounted cash flows; IFRS compares to recoverable amount.
Tap to flip back