The impairment test must be applied to tangible assets:
A) at each balance date;
B) every three years;
C) at each reporting date including interim reporting dates such as half-year;
D) only if there is an indication that the asset may be impaired.

Question

Quizplus · Accepted Answer

The impairment test for tangible assets should be conducted only if there is an indication that the asset may be impaired. If there is no such indication, the impairment test is not required at any specific point in time. However, if there are any factors that suggest that the carrying amount of the asset may not be recoverable, then the company should undertake the impairment test.

The Impairment Test Must Be Applied to Tangible Assets