Under IFRS,the impairment loss on a significant asset is the difference between the carrying value of the asset and ________.
A)the recoverable amount of the asset
B)the fair value of the asset
C)the value in use of the asset
D)the lesser of the fair value of the asset and its value in use

Question

Quizplus · Accepted Answer

Under IFRS, the impairment loss on a significant asset is recognized when the carrying value of the asset exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Therefore, the correct choice is A.

Under IFRS,the Impairment Loss on a Significant Asset Is the Difference