According to International Financial Reporting Standards (IFRS), the impairment loss for property, plant, and equipment is the difference between book value and:
A) The undiscounted sum of estimated future cash flows.
B) The present value of future cash flows.
C) Fair value less costs to sell.
D) The higher of the present value of estimated future cash flows and the fair value less costs to sell.

Question

Quizplus · Accepted Answer

Under IFRS, the impairment loss for property, plant, and equipment is determined as the difference between the asset's carrying amount and the higher of its fair value less costs to sell and its value in use (which is essentially the present value of the future cash flows expected to be derived from the asset).

According to International Financial Reporting Standards (IFRS), the Impairment Loss