Non-current assets are being audited and the following factors have been discovered: Motor vehicles are depreciated at 25% pa straight line (full year charge in the year of acquisation, no charge in the year of disposal). The cost of the vehicles at the end of the period is $200.000 and the depreciation charge for the year is $50.000. Because mosts care are kept for at least 5 years the company is thinking of changing its depreciation rate for cars to %20 pa. So that the charge would become $40.000. 17. Which of the following is correct? a) Impairement of a non-current asset could be identified by recalculation b) Impairement of a non-current asset could be identified by inspection c) Impairement of a non-current asset could be identified by analytical procedures d) Impairement of a non-current asset could be identified by reperformance

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Non-current assets are being audited and the following factors have been discovered: Motor vehicles are depreciated at 25% pa straight line (full year charge in the year of acquisation, no charge in the year of disposal). The cost of the vehicles at the end of the period is $200.000 and the depreciation charge for the year is $50.000. Because mosts care are kept for at least 5 years the company is thinking of changing its depreciation rate for cars to %20 pa. So that the charge would become $40.000.

17. Which of the following is correct?

a) Impairement of a non-current asset could be identified by recalculation

b) Impairement of a non-current asset could be identified by inspection

c) Impairement of a non-current asset could be identified by analytical procedures

d) Impairement of a non-current asset could be identified by reperformance

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