According to AASB 136 Impairment of Assets, the Recoverable Amount

question 14

Multiple Choice

According to AASB 136 Impairment of Assets, the recoverable amount test requires an entity to compare the fair value of an asset less costs to sell, with:

• A) the amount obtainable from the sale of the asset.
• B) the costs directly attributable to the liquidation of the asset.
• C) its disposal value.
• D) its value in use.

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Definitions:

Snap Rings

Circular, semi-flexible metal rings with open ends that fit into grooves and are used to secure components on shafts or in housing.

Gasket-Type Seals

Devices designed to prevent the leakage of fluids between two surfaces by filling the space between them, typically made of flexible materials.

Trapezoidal

A shape or form characterized by a four-sided polygon with at least one pair of parallel sides.

Cross Section

A view or drawing that shows what the inside of something looks like after a cut has been made perpendicular to its axis.