Exercise 11-3. Multiple Choice. Choose the best answer 1. When an impairment 1085 in relation to a cashgenerating unit is reversed, it is allocated on a pro rate {335.5 to the 355m of the unit, except for: a. Land b. goodwill c. plant d. equipment 2. During the current year Sila Limited, estimated that the carrying amount of goodwill was impaired and wrote it down by P50 000. In a subsequent year, the company reassessed goodwill was decided that the old acquired goodwill still existed. The appropriate accounting treatment in the subsequent period is: a. reverse the previous goodwill impairment loss b. recognise the revalued amount of goodwill by an adjustment against the asset revaluation surplus account ' c. ignore the reversal as it is prohibited by IAS 36 impairmentof Asset d. increase goodwill by an adjustment to retained earnings. 3. in relation to the impairment of assets, IAS 36 impairment of Assets, requires the following disclosures for each class of assets: I The line of the income statement in which impairment losses are included. ll - The amount of reversals of impairment losses during the period. Ill The amount of impairment losses recognised directly in equity. IV - The beginning and ending balances of any 'provision for impairment account. a. I, ll , Ill and IV c. H and [V only b. i, ii and Ill only d W UNIV 4. Which of the following is not an external source of information the lead to an impairment loss? . et 3. Evidence of obsolescence or physical damage of an ass h k b, The carrying amount of net assets of the entlty us more than t e mar et capitalization. Significant decrease in market value of the asset as a result of passage of time Inc of the asset as a result of a new competitor 5" entering the market