Which of the Following Is NOT Correct in Relation to the Reversal

question 1

Multiple Choice

Which of the following is NOT correct in relation to the reversal of an impairment loss of an individual asset?

• A) When reversing an impairment loss the carrying amount cannot be increased to an amount in excess of the carrying amount that would have been determined had no impairment loss been recognised;
• B) For a depreciable asset there needs to be a calculation of carrying amount using the depreciation variables applied before the impairment loss to determine what the carrying amount would have been if there had been no impairment loss;
• C) If the individual asset is recorded under the cost model, then the increase in the carrying amount is recognised immediately in profit or loss;
• D) Where the recoverable amount is less than the carrying amount of an individual asset, the reversal of a previous impairment loss requires adjusting the carrying amount of the asset to recoverable amount.

---

Definitions:

Sales Per Square Foot

A metric used to evaluate the efficiency of a retail space, indicating the average revenue generated per square foot of sales area.

Selling Area

The physical or digital space where products or services are displayed and offered to consumers for purchase.

Total Sales

The complete amount of sales revenue generated from goods or services within a specific period, before any deductions.

Wheel Of Retailing

A theory that describes how retail businesses start with low prices and low margins, then upgrade their operations and raise prices as they establish themselves.