Page 10 - 2018 Finac1 Test 3 Class Slides - 3. Impairment Of Assets
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TEST 3 PREPARATION
What is impairment?
• Impairment will occur when the carrying amount of
the asset in the books of the entity exceeds the
asset's recoverable amount. This will lead to an
impairment loss.
• The impairment loss may be reversed if there is any
indication that an impairment loss recognised for
an asset in prior years may no longer exist or may
have decreased.
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