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ACCA FR Chapter 7 Impairments (IAS 36) Questions

VIVA Subject Guide

11 Comments

  1. Jatin
    In question 2, why have we considered 1/6th of the value of 1 engine as the carrying value instead of the impairment value as it is being scrapped, but in the notes in question 3 of Chapter 7, it was stated that due to fire Plant, and equipment of CV $1.2million got scrapped and that was considered as impairment and not the carrying value.
    Please can someone help me with this?

    Many Thanks
    Jatin
  2. Ahlam
    can you please tell how to solve the 2nd question
  3. Bwalya
    Kindly show how you worked out the 10,000 carrying value for engine 1
  4. thuy
    Dear Pro, please advise me the question: for the remaining amount of impairement, what is the item that would be deducted to have the total impairment of 160.000?
  5. jaine1986
    Why non current asset has no impairment for no 2 question?
  6. Mitho007
    thats not non-current assets ,,its net current assets,,those are current assets
  7. jaine1986
    Why non current asset has no impairment?
  8. jaine1986
    That is for question 2.
  9. Cindy
    How was the 25 excess allocated between the engine and tracks?
  10. Kundishora
    Before impairment Engine CV = 60k plus Tracks CV = 90k giving a total of 150k. Proportinately therefore Engine = 60/150*25=10, and Tracks =90/150*25=15
  11. kolawole
    Good afternoon.

    i have an issue with the value of the impairment which is =135,000.00 by calculation i might be wrong the recoverable estimate is 350,000.00.
    the before total is 510,000.00. if the total of the impairment is 70,000+ 90,000+65,000+Nill=225, 350 less 225 to give an NCA of 125 instead of 135,
    135+225 =360

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