Which of the following statements about the recoverable amount used in the IFRS impairment test of a long-lived asset is false? Group of answer choices The recoverable amount is the lesser of the fair value of the asset less costs to sell or the asset's value in use. If an asset's recoverable amount is higher than the carrying amount, no impairment loss will be reported. After recognizing an impairment of an asset, the firm carries the asset at its recoverable amount. The recoverable amount may be calculated as the discounted value of expected future cash flows from the asset.

If a company develops in-house a highly profitable treatment and secures a patent for it, the asset will most likely appear on its balance sheet as an intangible asset (goodwill). True O False

Which of the following factors cannot be used to determine an insurer's limit of liability on property coverage? O A. Actual cash value Replacement cost Salvage value Policy limits OB. O C. D. Whiteboard

In determining the basis of like-kind property received, postponed losses are: O Subtracted from the basis of the old property. O Added to the fair market value of the like-kind property received. O Subtracted from the fair market value of the like-kind property received. O Added to the basis of the old property. O NONE of the choices are correct

The main objective of IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its statement of financial position at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and IAS 36 requires an impairment loss to be recognized. Required: Define an impairment loss explaining the relevance of fair value less costs to sell and value in use and state how frequently assets should be tested for impairment. 2. Describe the possible incators of impairment. 3. Explain how an impairment loss is accounted for after it has been calculated.

Which of the following is correct for the impairment of proved oil and gas properties under the SE method?   Group of answer choices A.  A temporary decline in the price of oil is sufficient to require testing for impairment.   B.  A hostile action by the government of a country in which the company is operating would likely indicate the need to test for impairment of those assets.   C.  The company compares the carrying value of the proved property to its discounted future cash flows to determine whether it is impaired.   D.  The carrying value of an asset that has been written down by recognizing an impairment may later be increased if the fair value increases.