According to AASB 136 Impairment of Assets,the Recoverable Amount of an Asset

question 3

Multiple Choice

According to AASB 136 Impairment of Assets,the recoverable amount of an asset or cash-generating asset is the:

• A)lower of its fair value less costs of disposal and its value in use.
• B)higher of its fair value less costs of disposal and its value in exchange.
• C)lower of its fair value less costs of disposal and its value in exchange.
• D)higher of its fair value less costs of disposal and its value in use.

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Definitions:

Tilted Layers

Geological formations where sedimentary rock strata are inclined at an angle from the horizontal, often indicating past tectonic movements or instability.

Tilted Layers

Stratified rock formations that have been inclined from their original horizontal position through tectonic activities.

High-grade Metamorphic

Rocks that have undergone significant metamorphism, involving high temperature and pressure, resulting in profound changes in mineralogy, texture, and chemical composition.

Gneiss

A metamorphic rock that contains a gneissic foliation defined by a preferred orientation of crystals and generally by alternating lighter and darker colored bands.