IAS 36, impairment of assets

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. Which of the following assets does IAS 36 apply to?

  2. Value in use is:

  3. If the fair value less costs to sell cannot be determined then:

  4. Estimates of future cashflows would normally cover projections over a maximum of:

  5. Which of the following is the best evidence of an asset's fair value less costs to sell?

  6. When calculating the estimates of future cashflows which of the following cashflows should not be included?

  7. When deciding upon the discount rate to be used, which factors should not be taken into account?

  8. A cash-generating unit is:

  9. When allocating an impairment loss, such a loss should reduce the carrying amount of which asset first?

  10. Which impairment losses should never be reversed?