Where an asset is measured using the cost model,any impairment loss is recognised immediately in profit and loss.

Question

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Under the cost model of accounting for assets, any impairment loss is recognized immediately in profit and loss. This is because the cost model involves recording assets at their historical cost less accumulated depreciation or amortization, and impairment losses reflect a reduction in an asset's recoverable amount below its carrying amount. Therefore, such losses are recognized as an expense in the income statement.

Where an Asset Is Measured Using the Cost Model,any Impairment