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CIMAPRA19-F01-1 Exam - Topic 1 Question 101 Discussion

An asset has the following values:If the asset was sold for its fair value, selling costs of $1,500 would be incurred.Which of the following is the value of the impairment loss to be recognised for this asset in accordance with IAS 36 Impairment of Assets?
C) $1,200
A) $0
B) $300
D) $2,000

CIMAPRA19-F01-1 Exam - Topic 1 Question 101 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 101
Topic #: 1
[All CIMAPRA19-F01-1 Questions]

An asset has the following values:

If the asset was sold for its fair value, selling costs of $1,500 would be incurred.

Which of the following is the value of the impairment loss to be recognised for this asset in accordance with IAS 36 Impairment of Assets?

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Suggested Answer: C

by Hermila at Sep 19, 2024, 01:29 PM

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Juan
8 months ago
Isn't the fair value minus selling costs the way to go?
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Hubert
8 months ago
Wait, how can it be $1,200? That seems off.
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Shawnna
8 months ago
Totally agree with you, Kristian!
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Kristian
8 months ago
I think the impairment loss is $1,200.
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Ronny
9 months ago
The selling costs are $1,500.
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Buddy
9 months ago
I feel like the answer might be $1,200, but I’m not completely confident. I need to double-check how selling costs impact the calculation.
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Tamar
9 months ago
I think the impairment loss is the difference between the carrying amount and the recoverable amount, but I can't recall the exact numbers we used in practice.
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Alpha
9 months ago
This question seems similar to one we practiced where we had to determine the recoverable amount. I think we need to subtract selling costs from fair value.
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Chandra
9 months ago
I remember we discussed how to calculate impairment losses, but I'm a bit unsure about how to factor in the selling costs here.
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Hassie
9 months ago
I'm a bit confused by this question. Can someone walk me through the step-by-step process of how to calculate the impairment loss? I want to make sure I understand it fully.
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Carman
9 months ago
Okay, let's see. The asset's fair value is $8,500, and selling costs are $1,500. I think I can figure this out, but I'll need to double-check my work.
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Alishia
9 months ago
Hmm, this looks like a tricky one. I'll need to carefully review the information provided and the requirements of IAS 36 to determine the correct impairment loss.
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Kelvin
10 months ago
This seems straightforward. The impairment loss is the difference between the asset's carrying amount and its fair value less selling costs, which is $2,000. I'm confident I can get this right.
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Hoa
2 years ago
I bet the exam creator thought they were being sly with this one, but we're too smart for their tricks! $1,200 is the impairment loss, no question about it. Time to move on to the next question and show off our accounting prowess!
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Dannette
2 years ago
Let's ace this exam with our accounting knowledge!
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Larae
2 years ago
Definitely, the selling costs of $1,500 would be deducted from the fair value of the asset.
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Adell
2 years ago
I agree, $1,200 is the correct impairment loss.
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Venita
2 years ago
Hmm, let me think about this. The fair value less selling costs is $500, and the carrying value is $1,700. Yep, option C is the correct answer - $1,200 is the impairment loss. Nailed it!
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Emily
2 years ago
I'm going with option C. $1,200 is the way to go, no doubt about it. How else would you calculate the impairment loss under IAS 36? This is a piece of cake!
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Marge
2 years ago
Yes, it's clear that the impairment loss for this asset should be $1,200. Option C is the answer.
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Alease
2 years ago
I agree, $1,200 seems to be the right choice based on the information provided.
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Art
2 years ago
I think option C is correct too. It's the impairment loss value according to IAS 36.
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Joseph
2 years ago
Wow, this is a tricky one. The fair value less selling costs is $2,000 - $1,500 = $500, and the carrying value is $1,700, so the impairment loss is $1,200. Easy peasy!
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Shaun
2 years ago
That makes sense, the correct answer is C) $1,200.
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Gregg
2 years ago
So, the impairment loss to be recognized is $1,200 according to IAS 36 Impairment of Assets.
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Francoise
2 years ago
I agree, the fair value less selling costs is $500, and the carrying value is $1,700.
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Beckie
2 years ago
I think the impairment loss is $1,200.
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Madelyn
2 years ago
But the selling costs are $1,500, so the impairment loss should be $1,200 (fair value - selling costs).
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Sherita
2 years ago
I believe it should be $300.
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Buffy
2 years ago
The impairment loss is clearly $1,200 according to IAS 36. That's the difference between the asset's carrying value and its fair value less selling costs.
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Ernest
2 years ago
User 2
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Delmy
2 years ago
User 1
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Madelyn
2 years ago
I think the impairment loss would be $1,200.
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