Impairment under IAS 36 occurs when:
ACarrying amount exceeds recoverable amountCORRECT
BAsset is sold
CAsset is depreciated
DAsset is donated
ACCAFinancial Reporting
AI
Toaster Teacher
Why the answer is A, and why the others tempt you.
Impairment loss = carrying amount − recoverable amount (higher of fair value less costs of disposal, and value in use).
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Financial Reporting questions
ACCA Financial Reporting has thousands more questions like this — with Worked answers on every one.