Under IFRS, to Determine If There Is an Impairment Loss

question 24

Multiple Choice

Under IFRS, to determine if there is an impairment loss:

• A)Compare the fair value of the identifiable assets to the book value of the assets
• B)Compare the fair value of the reporting unit against the carrying value of the reporting unit
• C)Compare the imputed current fair value of goodwill with the carrying value of goodwill
• D)Compare the carrying amount of the CGU with the recoverable amount

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Definitions:

Increase Work Efforts

An initiative or practice to enhance the quantity and quality of energy, time, and resources employees allocate to their job roles and responsibilities.

Increase Compensation

The act of raising the salary or overall remuneration package of employees to meet market standards, reward performance, or address inflation.

Expectancy Theory

This is a motivational theory in psychology that proposes an individual's behavior is determined by their anticipated outcomes or rewards.

Instrumentality

The belief that a particular action will lead to a particular outcome, emphasizing the means-end relationship in motivation theories.