Find the value of the impairment and account

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Question - An intangible asset held at historical cost has been impaired in value. The fair value of the intangible asset is £10,000, the cost of selling is £500. The present value of the value in use of the intangible asset is estimated to be £9,000. The carrying amount of the intangible asset is £10,500. Find the value of the impairment and account where the impairment will be recorded?

A) £1,500, statement of profit or loss

B) £1,000, statement of profit or loss

C) £1,500, revaluation reserve

D) £1,000, revaluation reserve

Reference no: EM132974774

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