Short Answer Question 1- Impairment

(Answer Length up to 100 words approximately)

Covid-19 has created a volatile operating environment for all companies and one major concern is the impact on asset values. Companies will need to carefully consider the impairment of their assets and will need to make judgments regarding their recoverable amount calculations.

Required:

Briefly explain any two (2) factors that could affect the estimations of recoverable amount for the companies in the manufacturing sector. Please ensure that the factors are relevant to the industry specified. (5 Marks)