Reference no: EM133188019

Question 1 - On April 23. 2020 Charm Company classified a noncurrent asset held for sale in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations. At that time, the asset's carrying amount was P64,000, its fair value was estimated at P48,000 and the costs to sell at P3,800.

On June 18, 2020. the asset was sold for net proceeds of P40,000. The company accounts for noncurrent assets using the cost model.

1. In accordance with IFRS 5, what amount should be included as an impairment loss in Chann Company's statement of comprehensive income for the year ended June 30, 2020?

a. P24,000

b. P19,800

c. P16,000

d. P4,200

2. Using that data of Problem J, what amount should be reported as loss on disposal in Charm Company's statement of comprehensive income for the year ended June 30, 2020?

a. P24,000

b. P19,800

c. P16,000

d. P4,200

Question 2 - On April 23, 2020, Charming Company classified a noncurrent asset held for sale in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations. At that time, the asset's carrying amount was P34,000, its fair value was estimated at P48,000 and the costs to sell at P3,800.

On July 18, 2020, the asset was sold for net proceeds of P40,000. The company accounts for noncurrent assets using the cost model.

In accordance with IFRS 5, at what amount should the asset be stated In Charming Company's statement of financial position at June 30, 2020?

a. P48,000

b. P44,800

c. P34,000

d. P30,200