Under IAS 36/AASB 136 Impairment of Assets, how many of these statements are true?
$\bullet$When an asset's carrying amount is less than its recoverable amount the asset is said to suffer impairment.
$\bullet$Impairment losses are accounted for as a revaluation decrease if the revaluation model is used.
$\bullet$Impairment losses must be recognised as an expense in that period if the cost model is used.
A) 0
B) 1
C) 2
D) 3

Question

Quizplus · Accepted Answer

The first statement is true, as per IAS 36/AASB 136, an asset is said to suffer impairment when its carrying amount is less than its recoverable amount.

The second statement is false, as per IAS 36/AASB 136, impairment losses are not accounted for as a revaluation decrease if the revaluation model is used. Impairment losses are accounted for separately from revaluation decreases.

The third statement is true, as per IAS 36/AASB 136, impairment losses must be recognised as an expense in that period if the cost model is used.

Under IAS 36/AASB 136 Impairment of Assets, How Many of These