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    Question

    If an asset’s recoverable amount is less than its

    carrying amount, what is the correct treatment under Ind AS 36?
    A Retain at carrying amount. Correct Answer Incorrect Answer
    B Reduce to recoverable amount and recognise impairment loss in P&L. Correct Answer Incorrect Answer
    C Transfer loss to OCI. Correct Answer Incorrect Answer
    D Defer impairment until disposal. Correct Answer Incorrect Answer
    E Create provision separately. Correct Answer Incorrect Answer

    Solution

    Impairment requires reducing asset’s carrying amount to recoverable amount. Loss is recognised immediately in P&L, except for certain revalued assets where OCI may be involved.

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