AASB 136 Impairment of Assets requires which of the following disclosures for each class of assets:
I The line item(s) of the statement of profit or loss and other comprehensive income in which impairment losses are included.
II The amount of reversals of impairment losses during the period.
III The amount of impairment losses recognised directly in other comprehensive income.
IV The beginning and ending balances of any accumulated impairment account.
A) I, II, III and IV.
B) I, II and III only.
C) II and IV only.
D) IV only.

Question

Quizplus · Accepted Answer

AASB 136 requires all four disclosures for each class of assets. The disclosure of the line item(s) of the statement of profit or loss and other comprehensive income in which impairment losses are included is required for transparency and to help users of the financial statements understand the impact of impairments on the entity's financial performance. The disclosure of the amount of reversals of impairment losses during the period helps users to understand the volatility of the entity's financial results, while the disclosure of any impairment losses recognised directly in other comprehensive income helps users understand the impact of impairments on the entity's financial position. Finally, the disclosure of the beginning and ending balances of any accumulated impairment account helps users understand the entity's impairment history and any changes to the carrying amount of the asset.

AASB 136 Impairment of Assets Requires Which of the Following