If an asset’s recoverable amount is less than its

Q: Answer-If an asset’s recoverable amount is less than its carrying amount, what is the correct treatment und...

Impairment requires reducing assets carrying amount to recoverable amount. Loss is recognised immediately in PL, except for certain revalued assets where OCI may be involved.

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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