IAS 36, impairment of assets

Which of the following assets does IAS 36 apply to?

Assets held for sale

Work in progress

Financial assets

Property, plant and equipment

Value in use is:

The discounted present value of future cashflows arising from use of the asset and from its disposal

The carrying amount

The realisable value

The higher of an asset`s fair value less cost to sell and its market value

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

The recoverable amount is the value in use

The replacement cost is used

The carrying value of the asset is used

The asset is not impaired

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

Five years

Eight years

20 years

12 years

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

The disposal value of the asset in an arm`s length transaction

An asset that is traded in an active market

The carrying value of the asset

The price in a binding sale agreement

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

Cashflows from disposal

Cashflows from the sale of inventory produced by the asset

Cash outflows on the maintenance of the asset

Benefits from future restructuring

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

Corporate lending rates

Risks which relate to the asset for which future cashflow estimates have been adjusted

Risks specific to the asset which future cashflow estimates have not been adjusted

Cost of capital

A cash-generating unit is:

The smallest group of assets that generates independent cashflows from continuing use

A reporting segment

Any group of assets that has independent cashflows

Any group of assets which forms part of the management reporting structure

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

Goodwill

Property, plant and equipment

Leases

Intangible assets

Which impairment losses should never be reversed?

Loss on leases

Loss on property, plant and equipment

Loss on goodwill

Loss on a cash generating unit

IAS 36, impairment of assets

Which of the following assets does IAS 36 apply to?

Value in use is:

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

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

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

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

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

A cash-generating unit is:

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

Which impairment losses should never be reversed?

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