Recoverable Amount of an Asset Is Defined in IAS 36

question 50

Multiple Choice

Recoverable amount of an asset is defined in IAS 36 as the higher of its fair value less costs to sell and its value in use.In the case where an asset's carrying amount is less than its recoverable amount,which action is consistent with IAS 36?

• A)recognise difference as increase is asset revaluation reserve
• B)recognise difference as impairment loss
• C)recognise difference as gain from reinstatement of asset
• D)leave asset at its carrying amount

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Definitions:

Tissue Samples

Small portions of tissue taken from the body for the purposes of examination or diagnosis.

Colonoscopy

A medical examination procedure in which a long, flexible camera (colonoscope) is used to view the inner lining of the colon and rectum.

Diverticulosis

The condition of having diverticula in the colon, which are small bulges or pouches that can form in the digestive tract wall.

GI Tract

The gastrointestinal tract, an organ system responsible for transporting and digesting foodstuffs, absorbing nutrients, and expelling waste.