How often must an impairment test be applied to tangible assets?

A) every two years.
B) at the end of each financial year.
C) only when there is an indication that the asset may be impaired.
D) at each reporting date including interim reporting dates such as half-year.

Question

Vanessa Riquelmy · Accepted Answer

Final Answer : C, Explanation :  According to IAS 36, an impairment test should be applied only when there is an indication that the asset may be impaired. This indication could come from internal or external sources, such as physical damage or changes in market conditions. However, if there are no indications of impairment, a formal test is not required.

How often must an impairment test be applied to tangible assets?

A) every two years.
B) at the end of each financial year.
C) only when there is an indication that the asset may be impaired.
D) at each reporting date including interim reporting dates such as half-year.

Definitions

Learning Objectives

Learning Objectives

Related questions

How often must an impairment test be applied to tangible assets?A) every two years.B) at the end of each financial year.C) only when there is an indication that the asset may be impaired.D) at each reporting date including interim reporting dates such as half-year.

Definitions

Learning Objectives

Learning Objectives

Related questions

How often must an impairment test be applied to tangible assets?

A) every two years.
B) at the end of each financial year.
C) only when there is an indication that the asset may be impaired.
D) at each reporting date including interim reporting dates such as half-year.