an impairment of a non current asset held for sale:
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
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Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 4RQSC
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an impairment of a non current asset held for sale:
Expert Solution
Step 1
Impairment means generally calculated as Carrying amount minus recoverable value.
Any impairment loss shall be recognised in profit and loss account.
The carrying value shall be determined after after deducting this impairment loss
Generally impairment can be considered both at the time of classification and as held for sale.
Impairment is generally considered for assets at the end of every accounting year.
If we decided to sale at the mid of the accounting year we can calculate impairment also, we do not wait for the accounting period end.
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