Answered: When should an impairment loss be…

When should an impairment loss be recognised? a) Immediately b) When requested by the entity's auditors C) At management's discretion d)Over a number of accounting periods

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 5CYBK

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

When should an impairment loss be recognised?

a) Immediately

b) When requested by the entity's auditors

C) At management's discretion

d)Over a number of accounting periods

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Accounting for Current liabilities, Provisions and Contingencies

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