Rebound Inc

question 46

Multiple Choice

Rebound Inc. reports under IFRS. In 2013 Rebound recognized an impairment of $200,000 due to a troubled debt restructuring. In 2014 Rebound was pleased to determine that more cash flows would be received from the receivable than was previously thought, such that, if the total impairment were to be calculated in 2014, it would be estimated as $150,000 rather than $200,000. How should Rebound treat this in its 2014 income statement?

• A)Rebound should ignore the change, given that recovery of its previous impairments is not allowed under IFRS.
• B)Rebound should make a prior period adjustment of 2013 income, given that the impairment charge was in error.
• C)Rebound should recognize an increase in 2014 net income of $50,000.
• D)None of the above is correct.

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Normally Distributed

Describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Normally Distributed

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