Assessing asset impairment

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. What standard currently covers the impairment of tangible assets?

  2. When is an impairment review needed for a tangible asset?

  3. When is an asset impaired?

  4. Which of these items are included within the definition of recoverable amount? Item 1 - Value in use, or item 2 - Fair value less costs to sell

  5. Which of the following assets is not covered by the impairment rules of IAS 36?

  6. Under IFRS 16 Leases, how should right-of-use assets be recognised?

  7. Which of these items would be subject to the rules of IAS 36?

  8. Where will impairment losses be recorded in respect of assets held under the cost model?

  9. Which, if any, of the following statements is correct? Statement 1 - Goodwill impairment can be reversed when conditions return to normal, or statement 2 - Goodwill impairment is outside the scope of IAS 36

  10. In a business reorganisation, which of these CANNOT happen in respect of the goodwill applied to a cash-generated unit?