Which of the following is correct with respect to the "impairment loss"?
A)It is defined as the carrying amount plus recoverable amount under IFRS.
B)It is defined as the carrying amount less fair value under ASPE.
C)Under IFRS, it is defined as the sum of the undiscounted cash flows expected from use of the asset.
D)Under ASPE, it is defined as the sum of the undiscounted cash flows expected from use of the asset.

Question

Quizplus · Accepted Answer

DImpairment loss under ASPE (Accounting Standards for Private Enterprises) is indeed defined as the carrying amount less fair value (Choice B), and under ASPE, it involves considering the sum of the undiscounted cash flows expected from the use of the asset (Choice D). Choices A and C incorrectly describe the impairment loss under IFRS and the methodology for calculating it.

Which of the Following Is Correct with Respect to the "Impairment