Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
Recording Impairments |
1. Asset Class Impairment - recorded to net income and asset account is credited 2. CGU Impairment A. Firstly, goodwill (if any for CGU’s) is written down to nil B. Remaining balance applied to remaining assets in CGU on a pro-rated basis |
|
|
Reversal of impairment |
Reversal other than goodwill can be reversed to the lesser of: 1. Recoverable And. 2. Carrying value (net of dep.) had the asset never been written down. **recognized in net income ** ASPE does not allow reversals |
|
|
Recoverable amount and impairment - 2 Step (ASPE only) |
1. Compare the carrying amount to undiscounted cash flows (recoverable amount) - if the CA>recoverable = impairment Move to step 2 2. Determine FV and compare to CA Loss = FV - CA |
