1.A machine which has been classified as property plant and equipment (IAS 16) and measured using the cost model has a correctly calculated carrying amount of $50 000 immediately before being classified as "held for sale'. On date of classification, it has a fair value of $75 000 and estimated costs to sell of $15 000. The transfer to the 'held for sale classification will result in the following: Select one: Ca the asset will be transferred to the 'held for sale classification at $50 000, and immediately be remeasured to fair value of $75 000, with a revaluation surplus of $25 000 recognised in other comprehensive income, and then, in terms of IFRS5, impaired to fair value less costs to sell of 560 000, with an impairment of $15 000 recognised as an impairment loss expense in profit or loss. b. the asset will be transferred to the held for sale classification at $50 000, and no further adjustments will be processed. c. the asset will be transferred to the 'held for sale classification at $50 000, and immediately be remeasured to fair value less costs to sell of $60 000 (S75 000 - $15 000), with a fair value gain of $10 000 recognised in profit or loss. Cd, the asset will be transferred to the 'held for sale classification at $50 000, and immediately be remeasured to fair value of $75 000, with a revaluation surplus of $25 000 recognised in other comprehensive income, and then, in terms of IFRS5, impaired to fair value less costs to sell of S60 000, with an impairment of $15 000 recognised as a debit against the revaluation surplus Ce the asset will be transferred to the held for sale classification at $50 000, and immediately be remeasured to fair value of $75 000, with a fair value gain of $25 000 recognised in profit or loss, and then, in terms of IFRS5, impaired to fair value less costs to sell of $60 000 ($75 000 - $15 000), with an impairment loss of S15 000 recognised in profit or loss. E Clear my choice 2. A non-current asset is classified as held for sale. On the date of classification, immediately prior to the transfer to the held for sale" classification, the asset had: a cost of $100 000, accumulated depreciation of $40 000 (10% per annum, straight- line over 4 years); and accumulated impairment losses in terms of IAS 36 of $15 000. The asset was then impaired in terms of IFRS 5 by $10 000. Assume that the above asset had not yet been sold at the end of the following reporting date, at which point its fair value less cost to sell was $75 000. Select one: Ca. The impairment loss reversal will be $40 000. cb. None of the statements are correct. Cc. The impairment loss reversal will be $10 000. d. The impairment loss reversal will be $25 000. Ce. The impairment loss reversal will be $15 000
