Impairment

Which standard governs the impairment of most non-financial assets?

• MFRS 138

• MFRS 139

• MFRS 136

• MFRS 140

Impairment occurs when the carrying amount of an asset exceeds its:

• Market Price

• Value in use only

• Recoverable amount

• Book Value

Which of the following is NOT within the scope of MFRS 136?

• Inventories

• Property, Plant and Equipment

• Goodwill

• Intangible Assets with indefinite lives

External indication of impairment includes:

• Change in depreciation method

• Market value decline

• Physical damage of asset

• Change in asset usage

Which asset must be tested for impairment annually, even without any indication of impairment?

• Machinery

• Leasehold property

• Intangible asset with indefinite useful life

• Investment in associate

Recoverable amount is the higher of:

• Fair value less costs of disposal and value in use

• Carrying amount and fair value

• Cost and market value

• Book value and fair value

Value in use is calculated using

• Replacement cost

• Historical cost

• Present value of future cash flows

• Carrying amount minus salvage value

When comparing carrying amount and recoverable amount, if CA > RA, the result is:

• Revaluation gain

• Depreciation

• Impairment Loss

• Gain on disposal

Goodwill must be allocated to which level for impairment testing?

• Entire Business

• Department Level

• Smallest CGU where monitored internally

• Any business segment

An impairment loss can be reversed in future years if

• Asset is sold

• Recoverable amount increases

• Management Changes

• Depreciation Changes