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Impairment of assets

Ddeeksha5y ago
hello, The carrying amount of an entity's net assets is lower than the entity's no. of shares in issue multiplied by its share price. How is this an indicator of impairment? Please explain. thank you.
P2-D2P2-D2Tutor5y ago#1
Hi, I don't think that this is an impairment indicator. It would be if the total share price was lower. Thanks
Ddeeksha5y ago#2
yes, I think the same. However, the solution for the abovementioned question, says this is an indicator of impairment. So, is there any chance of a mistake from their side? This is Q46 from the BPP test kit. Thank you
P2-D2P2-D2Tutor5y ago#3
It could be the case as it is not what the standard says. Thanks
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