Fixed Asset Impairment Flashcards
1
Q
What happens if the sum of undiscounted expected (future) cash flows is less than the carrying amount?
A
An impairment loss needs to be recognized
2
Q
Under IFRS, a fixed asset impairment loss is calculated under what model?
A
One-step model
3
Q
Does IFRS allow the reversal of impairment losses?
A
Yes
4
Q
What is used to determine the impairment?
A
Use discounted future net cash flows
5
Q
What is used to calculate the amount of the impairment?
A
Use fair value or discounted (PV) future net cash flows
