Corporate Accounting: Impairment Loss Reversal - Detailed Analysis
VerifiedAdded on 2023/06/11
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Essay
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This essay provides an analysis of the reversal of impairment loss in corporate accounting, focusing on directives stated under IAS 36 for Impairment. It discusses the recoverable amount of assets, fair value, and value in use, highlighting the importance of recognizing entries in the balance sheet where the total amount recoverable is lesser than the cost of carrying. The essay also covers the computation of fair value, the determination of recoverable amounts, and the factors considered when a company believes its asset worth is impaired, including the approximation of recoverable amounts, the role of cash flow, and the rate of discount. It further explores the concept of fair value as the selling price agreed upon by both buyers and sellers and the significance of disposal costs in asset sales. Desklib offers a platform to explore similar assignments and study resources.
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