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Impairments - Impairment review - ACCA Financial Reporting (FR)

VIVA Subject Guide
YouTube video

13 Comments

  1. skansman
    What's the difference between impairment of NCA and devaluation of NCA? treatment?
  2. Francisco
    https://www.differencebetween.com/difference-between-revaluation-and-vs-impairment/
  3. cathyj66cjj
    I have a technical question please on FR.

    On recognition of an Impairment, what happens to the accumulated depreciation when the asset is written down to the new carrying value?

    Thanks.
  4. munie
    Good day
    May I please understand why in the computation of value in use we used 5000*3.791

    and why did we not use the formula C(1+10%)^5

    Thank you in advance for the answer
  5. Mahgalathen
    I believe we are discounting the future cash flows to present value for the VIU. Your formula is based on inflating the value.
  6. sagarsingh
    After using the given formula, I believe the answer still remains the same. They have directly given the annuity factor.
  7. jaymzo
    Your Value in use (5000*3.791)=18,955
  8. chichi2018
    what about the cost of capital at 10 % do we just ignore it ?
  9. Natalia
    The cost of capital of 10% and the number of years which is 5 is used on the annuity factor table to derive at 3.791.
  10. ajayf
    what about the cost of capital 10%
  11. anamazingorange
    18955, not 18995. at 9:48
  12. zeddjayy
    how is the depreciation 5,000?
  13. eustacia
    25000 is dep for 5 years, 5000 is dep for 1 year. we take dep of only 1 year as the reporting period is of 1 year.

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