Your asset is impaired: its 'fair value less costs to sell' is OMR 4k and its value in use' is OMR 6k. Carrying value of the asset is OMR 8k. Which is the value of asset in the statement of financial position after impairment? O a. OMR 8k. O b. Loss of OMR 2k. O C. Zero. O d. OMR 6k.
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- TRUE OR FALSE?There is impairment loss if the carrying amount of the asset held for sale is P5,000,000 and the fair value less cost of disposal is P5,200,000.The difference between book value of the asset with the proceeds received from its sale, will resultin Select one a. Always a gain b Depreciable Cost c Cain or loss d. Always a loss(Multiple Choice Question) An impairment loss is recorded when capital asset's 1. net book value is higher than the amount it could likely be sold for 2. market value is higher than its accumulated amortization 3. market value is higher than its net book value 4. net book value is higher than its accumulated amortization
- Q10 Which of the following statement is NOT correct? Select one: a. When the carrying amount of an asset is less than the recoverable amount, then an asset should have its previous impairments reversed to the value of the recoverable amount provided there is accumulated amortization to cover the difference. b. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is greater. c. When the carrying amount of an asset is greater than the recoverable amount, then an asset should be impaired to the value of the recoverable amount d. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is less.16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of theseAccording to HKFRS 5, what is the measurement rule of Non-current assets held for sale? 1. The lower of carrying amount and value in use. 2. The lower of carrying amount and fair value less cost to sell. 3. None of them. The lower of carrying amount and fair value. 5. The lower of carrying amount and initial cost. 4.
- The fair value of an asset stood at OMR 300 and cost to sell these assets in the market is OMR 40, The preset value of future cash inflows from the asset is OMR 270. What is the recoverable amount? O a. OMR 300. O b. OMR 40. OC OMR 270. O d. OMR 260.2. The sale of the non-cash assets resulted in a total loss ofA. P70,000b. P60,000c.P65,000 d. P80.000e. answer not givenThe book value of an asset is equal to the: a. asset's market value less its historical cost b. book value relied on by secondary markets c. replacement cost of the asset d. asset's cost less accumulated depreciation
- For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True FalseWhen market value of an asset is higher than book value, depreciation is not charged. A True B FalseOnce an asset has been determined to be impaired, the amount of impairment is measured as: The asset's cost minus the fair value The asset's future cash inflows minus the book value The asset's book value minus the fair value The asset's cost minus the book value