Of the following items of property, plant, and equipment, which one must be tested for impairment under IFRS?

A	A commercial building was purchased last year and there have been no comparable buildings sold this year in the area.
B	A delivery truck was involved in a minor accident and was repaired in the year.
C	Projection equipment purchased two years ago must be replaced because it is not compatible with new hardware purchased by the entity. There is a market for used projection equipment.
D	A carpet manufacturing machine is no longer used because the pollutants released through its use exceed allowed levels under new environmental regulations.

When testing for impairment under IFRS, the recoverable amount is the higher of which two amounts?

A	Fair value less cost of disposal and value in use
B	Carrying value and fair value less cost of disposal
C	Carrying value and value in use
D	Future cash flows and fair value less cost of disposal

Sunwise Real Estate Investment Trust (Sunwise) owns commercial real estate across Canada. Charles, Sunwise’s controller, is preparing its financial statements for its December 31, 2020, year end. Charles has received information from the CFO that one of Sunwise’s strip malls may be impaired. The strip mall is located next to the town hall, which has been the centre of citizen protests for over six months. Almost all of the tenants have moved out of the mall and the CFO noted that recent properties sold nearby have shown that prices have decreased dramatically.
Information on the building is provided below:

Building cost	$2,200,000
Accumulated depreciation	(950,000)
Carrying value	$1,250,000
Undiscounted future cash flows from the building	$800,000
Discounted cash flows from the building	660,000
Estimate fair value	420,000
Estimated costs of disposal	25,000

What is the impairment that Sunwise should record in 2020 for the strip mall, assuming Sunwise reports under IFRS?

A	$855,000
B	$450,000
C	No impairment loss should be recorded, as Sunwise is not required to test the strip mall for impairment.
D	$590,000

Which of the following correctly describes the differences between ASPE and IFRS for impairment testing?

A	Under IFRS, entities must determine if there are indicators of impairment annually, whereas under ASPE assets must be automatically tested for impairment annually.
B	ASPE identifies impairment based on the cash-generating unit, whereas IFRS identifies impairment based on asset groupings.
C	Assets that are found to be impaired must be written down to fair value under ASPE and the recoverable amount under IFRS.
D	Under ASPE, the recoverable amount is determined by calculating discounted cash flows, while under IFRS, the recoverable amount is calculated using undiscounted cash flows.

For an entity reporting under ASPE, which of the following statements correctly describes the appropriate accounting for property, plant, and equipment?

A	ASPE allows the use of the cost or revaluation model for subsequent measurement of property, plant, and equipment.
B	When property, plant, and equipment is replaced, derecognition is not required as long as the net amount is recoverable from future cash flows.
C	For self-constructed assets, ASPE requires the capitalization of borrowing costs directly attributable to the construction of the asset.
D	When an entity uses straight-line depreciation, the depreciable amount is calculated as costless residual value divided by useful life.