Financial Reporting (Ind AS)Question 5826 of 11
All Questions

Under Ind AS 36 'Impairment of Assets', an impairment loss is recognized whenever the carrying amount of an asset or cash-generating unit exceeds its:

Options

ANet realizable value.
BRecoverable amount, which is the higher of Fair Value Less Costs of Disposal and Value in Use.
CPresent value of future cash flows only.
DReplacement cost.
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option B — Recoverable amount, which is the higher of Fair Value Less Costs of Disposal and Value in Use.

All Options:

  • ANet realizable value.
  • BRecoverable amount, which is the higher of Fair Value Less Costs of Disposal and Value in Use. ✓
  • CPresent value of future cash flows only.
  • DReplacement cost.

Detailed Solution & Explanation

Correct Answer: Option **B** Explanation: Ind AS 36 paragraph 18 defines the recoverable amount of an asset or a cash-generating unit as the higher of its fair value less costs of disposal and its value in use. If the carrying amount exceeds recoverable amount, an impairment loss must be recognized immediately in profit or loss.

More Questions from Financial Reporting (Ind AS)

Under Ind AS 115 'Revenue from Contracts with Customers', which of the following criteria must be met for an entity to recognize revenue over time?

In a business combination under Ind AS 103, how should acquisition-related transaction costs (e.g., legal fees, due diligence costs) incurred by the acquirer be accounted for?

Under Ind AS 116 'Leases', at the commencement date, how is the lessee's Lease Liability initially measured?

Under Ind AS 109 'Financial Instruments', an investment in equity shares not held for trading can be irrevocably designated at initial recognition to be measured at:

Which of the following is a key feature of Ind AS?

What is the primary objective of consolidation of financial statements?

Ready to Master Financial Reporting (Ind AS)?

Practice all 11 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free