Solution-Define an impairment loss explaining the relevance

Define an impairment loss explaining the relevance

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Reference no: EM133005143

Question - The main objective of IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its statement of financial position at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and IAS 36 requires an Impairment loss to be recognized.

Required -

1. Define an impairment loss explaining the relevance of fair value less costs to sell and value in use and state how frequently assets should be tested for Impairment.

2. Describe the possible Indicators of Impairment.

3. Explain how an impairment loss is accounted for after it has been calculated.

Reference no: EM133005143

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Define an impairment loss explaining the relevance

Reference no: EM133005143

Reference no: EM133005143

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