Hello Sir, In the Kaplan textbook of the question: “Which TWO of the following could be an indication that an asset may be impaired according to IAS 36 Impairment of Assets?”
one of the answer: Management intention to reorganise the business
Why this one would be an indication of impairment of an asset, I’m don’t understand Thank you.
If they are re-orgnaising then there will be changes in personnel, loss of staff etc. and so the value of the business may be less without these staff within the business, plus assets will be sold off, again showing the value of the business maybe less.