Which of the Following Statements About the Recoverable Amount Used

question 99

Multiple Choice

Which of the following statements about the recoverable amount used in the IFRS impairment test of a long-lived asset is false?

• A) The recoverable amount may be calculated as the discounted value of expected future cash flows from the asset.
• B) If an asset's recoverable amount is higher than the carrying amount, no impairment loss will be reported.
• C) After recognizing an impairment of an asset, the firm carries the asset at its recoverable amount.
• D) The recoverable amount is the lesser of the fair value of the asset less costs to sell or the asset's value in use.

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Definitions:

Motor Nerves

Nerves that carry impulses away from the central nervous system to muscles, stimulating them to contract and produce movement.

Sensory Nerves

Nerves that transmit sensory information from the body to the central nervous system, informing about external and internal environments.

Opiate Drugs

Substances derived from the opium poppy that are used for their pain-relieving properties but may lead to addiction.

Receptor Sites

Specific locations on the surface of a cell or within its interior where chemical compounds, such as hormones or neurotransmitters, can bind to trigger a response in the cell.