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For calculating impairment loss do you use the net assets or Total Assets? Some solutions use net assets and some total assets.
I believe that what has caused your confusion is specifically the exam question that says to use only total assets instead of the usual net assets.
Use net assets unless told otherwise
I was talking about Minny. I went back to check the question which did state that liabilities were not considered in the recoverable amount. I saw where the confusion was….I disregarded that last sentence that is why I got confused. Got it now!
The lesson learned? You can’t ignore anything! The examiner doesn’t write things in questions just to make the question longer!
I know right? I hang onto every word in exams and read it multiple times to make sure lol
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