In Relation to the Impairment of Assets, IAS 36 Impairment

question 26

Multiple Choice

In relation to the impairment of assets, IAS 36 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:

Work in Process

Goods that are in various stages of the production process but are not yet completed.

Standard Cost Card

A document listing the standard costs associated with manufacturing a product, including labor, materials, and overhead.

Standard Cost System

A standard cost system estimates the costs of production in advance, using standard rates for materials and labor to assess efficiency and performance.

Cost of Goods Sold

Financial outlays directly resulting from the creation of goods a business trades, including materials and manpower.