1) Which of the following assets does IAS 36 apply to?

A. Financial Assets

B. Property, plant, and equipment

C. Assets held for sale

D. Work in progress

2) Assets other than goodwill that contribute to the future cash flows of CGU under review and other CGU. This defined:

A. Cash Generating Unit

B. Corporate Assets

C. Plant and Machinery

D. Goodwill

3) Which statement below is NOT TRUE with regard to the recognition and measurement?

A. Depreciation should not be adjusted after the recognition of impairment loss

B. If required by the standard, liability is recognized when estimated impairment loss is more than carrying amount

C. Impairment loss of a revalued asset shall be treated as revaluation decrease against any revaluation surplus in Other comprehensive income

D. Impairment loss shall be recognized as an expense in Profit or Loss except for revalued asset

4) PAS16 requires what basis of valuation to be used if assets are valued at other than cost?

A. Fair value

B. The lower of cost and net realizable value

C. No basis of valuation is specified

D. Market value

5) On January 2, 2011, ABC Company has completed the construction of a building for a total cost of P10,000,000. The building is to be depreciated on a straight-line basis over its estimated useful life of 40 years. On January 2, 2016, Beige converted the building into a commercial establishment with only minor renovation costs incurred. In consultation with an appraiser, the building's fair value as of January 1, 2016 was P11,970,000. On January 1, 2018, due to sudden change in economic environment, Beige is evaluating possible impairment and determined that the recoverable value of the building was P7,000,000. What is the amount of impairment loss, if any, on January 1, 2018?

A. P1,050,000

B. P3,500,000

C. P4,286,000

D. P1,250,000

6) Recoverable amount is determined by comparing between:

A. Fair value-cost to sell and value in use, whichever is higher

B. Fair value-cost to sell and value in use, whichever is lower

C. Fair value-cost to sell and future value, whicever is higher

D. None of the above

7) The revaluation surplus is allocated or realized over the remaining useful life of the asset and reclassified through __________?

A. Retained earnings

B. Income

C. Share capital

D. Share premium

8) It is used when market value is not available.

A. Depreciated replacement cost

B. Carrying amount

C. Historical cost

D. None of the above

9) How often should a cash generating unit to which goodwill has been assigned, be tested for impairment?

A. Every six months

B. At management's discretion

C. Every year

D. As often as practicable

10) Which statement is TRUE about Cash Generating Unit (CGU)?

A. The smallest identifiable group of assets

B. Generates cash inflows that are largely independent of cash inflows from other assets or group of assets

C. Recoverable amount of CGU is determined when it is not possible to estimate recoverable amount of the individual asset

D. All of the above

11) Which one below is not the indication of impairment?

A. Decline in market value

B. Increased in interest rates

C. Obsolescence or physical damage of an asset

D. Favorable changes in technological, market, economic or legal environment

12) Asset is impaired when:

A. Carrying amount and recoverable amount is not the same

B. Carrying amount is equal to the recoverable amount

C. Carrying amount is more than recoverable amount

D. Carrying amount is less than recoverable amount

13) ABC Corporation acquired a building on January 1, 2015 at a cost of P50,000,000. The building has an estimated life of 10 years and residual value of P5,000,000. The building was revalued on January 1, 2019 and the revaluation revalued replacement cost of P80,000,000, residual value of P2,000,000 and revised total life of 12 years.

The carrying amount of building as of December 31, 2019 is

A. P48,800,000

B. P28,250,000

C. P42,950,000

D. P42,700,000