IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley lFRS: Practicallmplementation Guide and Workbook

(d) Shall be written off against retained profits. Answer: (c) 14. When impairment testing a cash-generating unit, any corporate assets, such as the head office business or computer equipment, should (a) Be allocated on a reasonable and consistent basis. (b) Be separately impairment tested. (c) Be included in the head office assets or par– ent's assets and impairment tested along with that cash-generating unit. (d) Not be allocated to cash-generating units. Answer: (a) 15. When allocating an impairment loss, such a loss should reduce the carrying amount of which asset first? (a) Property, plant, and equipment. (b) Intangible assets. (c) Goodwill. (d) Current assets. Answer: (c) 16. Which of the following impairment losses should never be reversed? (a) Loss on property, plant, and equipment. (b) Loss on goodwill. (c) Loss on a business segment. (d) Loss on inventory. Answer: (b)