Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: A . an extraordinary item.

A1

An impairment loss for goodwill is calculated as the difference between ________. Group of answer choices the fair value of the reporting unit (including goodwill) and the book value of the reporting unit (including goodwill) the implied fair value of goodwill and its book value the fair value of the reporting unit (including goodwill) and the fair value of its net assets (without goodwill) the book value of the reporting unit (including goodwill) and the book value of its net assets (without goodwill)

Describe why allow the fair value option for financial assets and liabilities and not for buildings or land?

Explain what is meant by the impairment of the value of property, plant, and equipment and intangible assets. How should these impairments be accounted for?

vi.2

The related-party loss limitation applies to distributions to related parties and either the distribution is pro rata or the property distributed is disqualified property. True False

All of the following statements regarding asset impairments are true EXCEPT which one? O After recording the impairment loss, the reduced carrying amount of the asset held for use becomes its new cost basis O An impaired asset held for disposal may not be written up O An impairment loss for an asset held for use may not be restored. An impaired asset held for disposal is treated like inventory, and therefore should be reported at the lower-of-cost or net-reaalizable value.

Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an impairment of an item of property, plant and equipment be

TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.