Under AASB 136 Impairment of Assets, impairment of an asset, and the accounting treatment using the cost model, are as follows:
Impairment Accounting treatment
a. Carrying amount of an asset is less Asset is written up to its recoverable amount
than its recoverable amount
b. Carrying amount of an asset is less No change to the asset value
than its recoverable amount
c. Carrying amount of an asset is Asset is written down to its recoverable amount
greater than its recoverable amount
d. Carrying amount of an asset is No change to the asset value
greater than its recoverable amount
Correct Answer:
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