In Relation to the Impairment of Assets, AASB 136 Impairment

question 9

Multiple Choice

In relation to the impairment of assets, AASB 136 Impairment of Assets, requires the following disclosures for each class of assets:
I The line of the statement of profit or loss and other comprehensive income in which impairment losses are included.
II The amount of reversals of impairment losses during the period.
III The amount of impairment losses recognised directly in other comprehensive income.
IV The beginning and ending balances of any 'provision for impairment' account.

• A) I, II, III and IV
• B) I, II and III only
• C) II and IV only
• D) IV only.

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Definitions:

Consequence

The result or effect of an action or condition, often seen in terms of how it affects an earlier event.

Enhancement

Refers to the improvement or intensification of qualities, performance, or characteristics, often through the use of technological, chemical, or psychological means.

Correlation

A numerical indicator showing how much two or more variables move in relation to each other.

Validity

The degree to which an idea, finding, or measure is grounded in reality and reflects the true state of affairs accurately.