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Impairment of assets

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Impairment of assets

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by AvatarP2-D2.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 5, 2021 at 11:00 pm #634517
    Avatardeekshabee
    Participant
    • Topics: 25
    • Replies: 22
    • ☆

    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.

    September 8, 2021 at 7:44 pm #634974
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    I don’t think that this is an impairment indicator. It would be if the total share price was lower.

    Thanks

    September 9, 2021 at 3:22 am #635002
    Avatardeekshabee
    Participant
    • Topics: 25
    • Replies: 22
    • ☆

    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

    September 17, 2021 at 7:48 pm #635912
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    It could be the case as it is not what the standard says.

    Thanks

  • Author
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