Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA19-F01-1 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?

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Hoa
10 months 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!
upvoted 0 times
Dannette
9 months ago
Let's ace this exam with our accounting knowledge!
upvoted 0 times
...
Larae
10 months ago
Definitely, the selling costs of $1,500 would be deducted from the fair value of the asset.
upvoted 0 times
...
Adell
10 months ago
I agree, $1,200 is the correct impairment loss.
upvoted 0 times
...
...
Venita
10 months 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!
upvoted 0 times
...
Emily
10 months 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!
upvoted 0 times
Marge
10 months ago
Yes, it's clear that the impairment loss for this asset should be $1,200. Option C is the answer.
upvoted 0 times
...
Alease
10 months ago
I agree, $1,200 seems to be the right choice based on the information provided.
upvoted 0 times
...
Art
10 months ago
I think option C is correct too. It's the impairment loss value according to IAS 36.
upvoted 0 times
...
...
Joseph
11 months 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!
upvoted 0 times
Shaun
10 months ago
That makes sense, the correct answer is C) $1,200.
upvoted 0 times
...
Gregg
10 months ago
So, the impairment loss to be recognized is $1,200 according to IAS 36 Impairment of Assets.
upvoted 0 times
...
Francoise
10 months ago
I agree, the fair value less selling costs is $500, and the carrying value is $1,700.
upvoted 0 times
...
Beckie
10 months ago
I think the impairment loss is $1,200.
upvoted 0 times
...
...
Madelyn
11 months ago
But the selling costs are $1,500, so the impairment loss should be $1,200 (fair value - selling costs).
upvoted 0 times
...
Sherita
11 months ago
I believe it should be $300.
upvoted 0 times
...
Buffy
11 months 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.
upvoted 0 times
Ernest
11 months ago
User 2
upvoted 0 times
...
Delmy
11 months ago
User 1
upvoted 0 times
...
...
Madelyn
11 months ago
I think the impairment loss would be $1,200.
upvoted 0 times
...

Save Cancel