10 of 12 A company has a machine which cost 288,000 on 1 July 20X3. At this date the company estimated the machine's useful life as 12 years with a residual value of 30,000 and uses the straight-line method of depreciation. On 30 June 1 20X7, the company carried out an impairment test and determined the fair value to be 200,000 with estimated costs of disposal of 4,500, and the value-in-use to be 220,000 What expense will be charged to the statement of profit or loss in respect of this machine for the year ended 30 June 20x7? O 3,500 O 28,000 O 21,500 O 6,500 11 of 12 A company has prepared its financial statements for the year ended 31 March 20X7 and authorises them for issue to its shareholders on 28 June 20x7. The company's annual general meeting is held on 3 September 20X7 Which of the following events are adjusting events arising after the reporting period? (1) The discovery on 5 August 20X7 that the sales manager had been submitting false expense claims since he was employed in 20X6. (2) Write-off of some of the company's inventory following a fire in the warehouse on 8 May 20X7. (3) Dividends on irredeemable preference shares declared on 30 March 20X7 and paid on 15 May 20X7. (2) and (3) (3) only (1) and (3) O (1) and (2) 12 of 12 Which of the following statements about impairment are correct? (1) A company must test all non-current assets for impairment at the end of each financial reporting period (2) An asset is impaired only if both its value in use and fair value less costs of disposal are less than its carrying amount (3) An asset is impaired if one of its value in use and fair value less costs of disposal is less than its carrying amount (4) There must be both internal and external indicators that an asset is impaired for an impairment loss to be charged to profit or loss O (2) only O (3) and (4) O (1) and (2) (1), (3) and (4)