Impairment PQ

Impairment will almost certainly be examined in the FR exam and you are likely to see it in the objective test questions or in the published accounts question. Therefore it is vital you can recognise when an asset has been impaired and know how to calculate the impairment charge, as well as be familiar with the correct accounting treatment. 

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IFRS 9 Financial Instruments made easy!

You have probably heard of the term ‘amortised cost’ in financial reporting. But what exactly is it and what gets measured at amortised cost? Let’s answer the second question first. Most financial liabilities (think loans, bonds, debentures) are measured on this basis. Lease liabilities are effectively treated as financial liabilities and are also measured at amortised cost. 

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