Exam 7: Impairment of Assets

Which of the following is required to be disclosed for each class of assets: I - the amount of impairment losses recognised in profit or loss during the period. II - the amount of reversals of impairment losses recognised in profit or loss during the period. III - the amount of impairment losses on revalued assets recognised in other comprehensive income during the period. IV - the amount of reversals of impairment losses on revalued assets recognised directly in other comprehensive income during the period.

Hayfield Limited recognised an impairment loss of $200 against a cash-generating unit containing the following assets: buildings $500; roads $300; equipment $600. The net carrying amount of the roads after allocation of the impairment loss is:

When evaluating whether an asset has been impaired, the carrying amount of the asset must be compared to recoverable amount. Recoverable amount is the higher of: