2. Impairment is to ensure that assets are stated at their true value, providing accurate and...
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2. Impairment is to ensure that assets are stated at their true value, providing accurate and reliable information to stakeholders. (a) Identify the internal and external factors that cause drastic change in the value of assets that results in the impairment loss. (6) (b) Syarikat Akbar owns a building with a carrying amount of RM500,000. Due to changes in market conditions, the company believes that the recoverable amount of the building may be lower than its carrying amount. The estimated fair value less costs to sell is RM450,000, and the value in use is RM470,000. Determine if an impairment loss exists, and if so, calculate the amount of the impairment loss. (14) (Total / Jumlah: 20 ) 2. Impairment is to ensure that assets are stated at their true value, providing accurate and reliable information to stakeholders. (a) Identify the internal and external factors that cause drastic change in the value of assets that results in the impairment loss. (6) (b) Syarikat Akbar owns a building with a carrying amount of RM500,000. Due to changes in market conditions, the company believes that the recoverable amount of the building may be lower than its carrying amount. The estimated fair value less costs to sell is RM450,000, and the value in use is RM470,000. Determine if an impairment loss exists, and if so, calculate the amount of the impairment loss. (14) (Total / Jumlah: 20 )
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A heres a list of internal and external factors that can cause a drastic change in the value of assets leading to impairment loss Internal Factors 1 Technological Obsolescence Rapid advancements in te... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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