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kaplan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › kaplan

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarP2-D2.
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    Posts
  • February 16, 2019 at 1:07 am #505254
    Avatartoushiga
    Participant
    • Topics: 424
    • Replies: 171
    • ☆☆☆☆

    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.

    February 16, 2019 at 12:40 pm #505315
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    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.

    Thanks

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