Which of the Following Statements About the Recoverable Amount Used

question 75

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 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.