1
Q
Impairment of I/A other than Goodwill
A
1 step model:
*carrying value is compared to recoverable amount
*recoverable amount =
> of assets FV less costs to sell and assets value in use
- Value in use = PV of future cash flows expected
- loss recognized to extent carrying value exceeds recoverable amount
- reversal permitted
DO NOT BE FOOLED AND ASSUME LOWER WITH REGARD TO RECOVERABLE AMOUNT BUT GREATER IS WHAT IS USED
2
Q
Executory Costs in Lease under IFRS
A
Initial direct costs of lease paid by lessee are added to the amount recognized as a finance lease ASSET.
The amount of lease asset & lease obligation can differ.
