Impairments

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount’
A) Impairment Loss
B) Cash-generating unit
C) Fair value less costs of disposal
D) Carrying amount

‘The higher of the fair value less costs of disposal of an asset and its value in use’
A) Carrying amount
B) Fair value less costs of disposal
C) Recoverable amount
D) Value in use of an asset

‘The amount of which the asset is recognised after deducting accumulated depreciation and any impairment losses in the statement of financial position’
A) Impairment loss
B) Carrying amount
C) Fair value less costs of disposal
D) Recoverable amount

‘The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets’
A) Impairment loss
B) Cash generating unit
C) Recoverable amount
D) Carrying amount

‘The price that would be received to sell the asset in an orderly transaction between market participants at the measurement date, less the direct incremental costs attributable to the disposal of the asset’
A) Impairment loss
B) Cash generating unit
C) Value in use of an asset
D) Fair value less costs of disposal

‘The present value of estimated future cash flows expected to be derived from the use of an asset’
A) Carrying amount
B) Recoverable amount
C) Value in use of an asset
D) Fair value less cost of disposal

The recoverable amount of an asset is the higher of:
A) Fair value
B) Fair value less costs of disposal
C) Market vale
D) Value in use

Which TWO of the following would be external indicators that one or more of an entity’s assets may be impaired?
A) An unusually significant fall in the market value of one or more assets
B) Evidence of obsolescence of one or more assets
C) A decline in the economic performance of one or more assets
D) An increase in market interest rates used to calculate value in use of the assets

Is the following an indicator of impairment
’Advances in the technological environment in which an asset is employed has an adverse impact on its future use’

Is the following an indicator of impairment
’An increase in interest rates which increases the discount rate an entity uses’

Is the following an indicator of impairment
’the carrying amount of an entitys net assets is lower than the entitys number of shares in issue multiplied by its share price’

Is the following an indicator of impairment
’The estimated net realisable value of inventory has been reduced due to fire damage although this value is greater than its carrying amount’