- 5 Marks
Question
In accordance with IAS 36: Impairment of Assets, an entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any such indications exist, the entity shall estimate the recoverable amount of the asset. However, some assets would require mandatory testing for impairment.
Required:
Outline assets that require mandatory testing for impairment in accordance with IAS 36: Impairment of Assets. (5 marks)
Answer
- test an intangible asset with an indefinite useful life or
- an intangible asset not yet available for use
- test goodwill acquired in a business combination for impairment annually by comparing its carrying amount with its recoverable amount
.
- Tags: Goodwill, IAS 36, Impairment testing, Intangible Assets, Mandatory Testing
- Level: Level 2
- Topic: Impairment of Assets
- Series: APR 2022
- Uploader: Cheoli