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.

Calculate the duration of loans and savings plans.

Calculate the term of an ordinary annuity in years and months.

Determine the financial impact of additional payments towards a mortgage including interest savings and term reduction.

Use a financial calculator to determine the term of ordinary annuities.

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Definitions:

Low-context Culture

A communication style where messages are explicit and clear, relying less on situational context and more on direct words.

Written Information

Content or data that is expressed through writing, as opposed to being delivered orally or through nonverbal mediums.

Group Membership

Belonging to a set of individuals who share common interests, goals, or characteristics, often formalized with specific roles.

High-context Culture

A culture in which communication is largely implicit, relying heavily on context, non-verbal cues, and social norms to convey meaning.