Recoverable Amount

AAA – L3 – SA – Q1.7 – Impairment

Incorrect statement about impairment.

Question

Which of the following statements is INCORRECT?

A Goodwill must be reviewed annually for impairment

B There is impairment when the recoverable amount is above the carrying amount

C The recoverable amount is the higher of fair value less costs to sell and value in use

D Value in use essentially involves discounted cash flow forecasts

Answer

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Tags: Goodwill, ICAG, Impairment, Recoverable Amount
Level: Level 3

Topic: Evaluation and review

PSAF- L2 – Q10.4 – International Public Sector Accounting Standards

Determine recoverable amount of three intangible assets for Nandom Technical University.

Question

The following information relates to three intangible assets in respect of Nandom Technical University.

	Brands (GHC)	Software (GHC)	Trade Marks (GHC)
Carrying amount	200,000	300,000	240,000
Net realisable value	220,000	250,000	200,000
Value in use	240,000	260,000	180,000

Required:
(a) What is the recoverable amount of each asset?

(b) Calculate the impairment provision for each of the assets.

Answer

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Tags: Accounting Standards, Asset Valuation, Financial Reporting, Impairment, Impairment Loss, Intangible assets, IPSAS, Non-current Assets, Public Sector Accounting, Recoverable Amount
Level: Level 2

Topic: International Public Sector Accounting Standards

Tag (SQ): Recoverable Amount

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AAA – L3 – SA – Q1.7 – Impairment

Incorrect statement about impairment.

PSAF- L2 – Q10.4 – International Public Sector Accounting Standards

Determine recoverable amount of three intangible assets for Nandom Technical University.

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Tag (SQ): Recoverable Amount

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AAA – L3 – SA – Q1.7 – Impairment

Incorrect statement about impairment.

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PSAF- L2 – Q10.4 – International Public Sector Accounting Standards

Determine recoverable amount of three intangible assets for Nandom Technical University.

You're reporting an error for "PSAF- L2 – Q10.4 – International Public Sector Accounting Standards"

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