Which of the following statements in relation to assessing E&E assets for impairment is correct?
A) AASB 6/IFRS 6 allows E&E assets to be tested for impairment at the individual asset level.
B) AASB 6/IFRS 6 does not allow the reversal of impairment write-downs made against E&E assets.
C) The level at which and E&E asset is tested for impairment may consist of one or more cash-generating units.
D) AASB 6/IFRS 6 allows the cash-generating unit or group of cash-generating units to which an E&E asset is allocated to be larger than a segment determined in accordance with IFRS 8.

Question

Quizplus · Accepted Answer

AASB 6/IFRS 6 allows for E&E assets to be tested for impairment either at the individual asset level or at the cash-generating unit level, which may consist of one or more assets. While AASB 6/IFRS 6 does not allow for the reversal of impairment write-downs made against E&E assets, it does allow for write-downs to be reversed for other types of assets. Finally, the cash-generating unit or group of cash-generating units to which an E&E asset is allocated can be no larger than a segment determined in accordance with IFRS 8. Therefore, statements A, B, and D are incorrect.

Which of the Following Statements in Relation to Assessing E&E