Reference no: EM133002422

Problem 1: An impairment loss that relates to an asset that has been revalued should be recognized in?

a) Profit or loss

b) Revaluation surplus that relates to the revalued asset

c) Opening retained earnings

d) Any reserve in equity

Problem 2: Which statement is correct in determining the recoverable amount?

a) If the carrying amount is less than fair value less costs to sell or value in use, it is not necessary to calculate the other amount.

b) If fair value less costs to sell cannot be determined, then recoverable amount is value in use.

c) For assets to be disposed of, recoverable amount is fair value less costs to sell.

d) All of the above.

Problem 3: The impairment rules for long-lived assets apply to all of the following, except:

a) Building currently used in the business

b) Financial instruments

c) Land

d) Minicomputers used to run a production process