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Hi Sir,
I have a multiple choice question to ask regarding IAS 38.
Which of the different types of assets are assessed for Impairment under IAS 38?
a) Inventory
b)PPE
c) Intangible assets with an indefinite useful life
d) Intangible assets with a definite useful life
e) Deferred tax asset
f) Biological assets related to agricultural activity measured at FV less costs to sellMy guess was all of it, except e) , is that correct?
The title of IAS 38 is “Intangible assets” and the word “intangible” means that you cannot physically touch them
Now, do you wish to reconsider your answer?
Before you finalise your reconsideration, certain intangible assets are excluded from the provisions of IAS 38 because their own accounting standard deals with the issue of fall in value
Here’s an extract from the IAS 38 excluded assets section
“(Other assets specifically excluded from IAS 38 include):
intangible assets covered by another IFRS, such as:
intangibles held for sale (IFRS 5 Non-current Assets Held for Sale and Discontinued Operations)
deferred tax assets (IAS 12 Income Taxes)
lease assets (IAS 17 Leases)(soon to be IFRS 16),
assets arising from employee benefits (IAS 19 Employee Benefits (2011))
goodwill (IFRS 3 Business Combinations)”
NOW you can reconsider your answer
OK?
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