Reference no: EM133012658

Problem 1: The amount of the loss required to be recognized for impairment in value of a long-lived asset should be the excess of the asset's carrying value over the:

a. undiscounted estimated future cash flows

b. acquisition cost

c. fair value

d. acquisition cost less the estimated future cash flows

Problem 2: Which of the following is true when a long-term asset is written down due to an impairment of value?

I. Fixed assets will decrease.

II. Stockholders' equity will decrease.

III. Net income will decrease.

a. I and III

b. I and II

c. II and III

d. I, II and III

Problem 3: Recoverability is based on the comparison between these values under IFRS:

I. carrying value.

II. higher of fair value.

III. undiscounted future cash flows.

IV. higher of discounted future cash flows.

a. I, II and III

b. I and II

c. I, III and IV

d. I, II and IV