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

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 101
Topic #: 1

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?

A$0

B$300

C$1,200

D$2,000

Show Suggested 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

8 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

7 months ago

Let's ace this exam with our accounting knowledge!

upvoted 0 times

...

Larae

7 months ago

Definitely, the selling costs of $1,500 would be deducted from the fair value of the asset.

upvoted 0 times

...

Adell

7 months ago

I agree, $1,200 is the correct impairment loss.

upvoted 0 times

...

Venita

8 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

8 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

7 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

7 months ago

I agree, $1,200 seems to be the right choice based on the information provided.

upvoted 0 times

...

Art

7 months ago

I think option C is correct too. It's the impairment loss value according to IAS 36.

upvoted 0 times

...

Joseph

9 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

7 months ago

That makes sense, the correct answer is C) $1,200.

upvoted 0 times

...

Gregg

7 months ago

So, the impairment loss to be recognized is $1,200 according to IAS 36 Impairment of Assets.

upvoted 0 times

...

Francoise

8 months ago

I agree, the fair value less selling costs is $500, and the carrying value is $1,700.

upvoted 0 times

...

Beckie

8 months ago

I think the impairment loss is $1,200.

upvoted 0 times

...

Madelyn

9 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

9 months ago

I believe it should be $300.

upvoted 0 times

...

Buffy

9 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

8 months ago

User 2

upvoted 0 times

...

Delmy

8 months ago

User 1

upvoted 0 times

...

Madelyn

9 months ago

I think the impairment loss would be $1,200.

upvoted 0 times

...