• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

IAS 36 Impairment of Assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS 36 Impairment of Assets

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • January 23, 2022 at 12:19 pm #647320
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    The carrying amount of an entity’s net
    assets is lower than the entity’s number of
    shares in issue multiplied by its share price

    Dear Sir, but Revision Kit BPP has shown as indicator of impairment although this statement is not applicable for indicator of impairment

    pls help

    because

    “Note that assets in this case include all tangible and intangible assets. It does not include assets
    such as inventories, deferred tax assets, assets arising under IAS 19 Employee Benefits and
    financial assets within the scope of IFRS 9 Financial Instruments as these standards already have
    rules for recognising and measuring impairment.”

    External sources::

    “Carrying amount of net assets of the entity exceeds market capitalisation”

    January 23, 2022 at 1:23 pm #647322
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    Examples of events indicating impairment

    “Carrying amount of net assets of the entity exceeds market capitalisation”

    January 23, 2022 at 6:04 pm #647343
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    Yes, if the carrying amount of the net assets is less than the market capitalisation then there is no impairment indicator as the market value of the business (e.g. $100m) is higher than the book value (e.g. $80m). We’re looking for where the net assets are higher in the accounts (e.g. $120m) in comparison to the market value (e.g. $100m), indicating that the net assets are valued too highly in comparison to what the external markets believe.

    Thanks

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • tobimillz100 on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • omarcham on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • ANISH1903 on Outsourcing, shared services and disruptive technologies – ACCA Strategic Business Leader (SBL)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy