Question 12 In accordance with HKAS 36, which of the following would definitely NOT be an indicator of the potential impairment of an asset (or group of assets)? A B COVID 19 brought about the massive reduction of property price. The government passed the legislation to prohibit the business sector to employ illegal immigrants. Severe destruction of a productive machine A significant change in the technological environment in which an asset is employed making its software outdated. D Question 13 In accordance with HKAS 36, which of the following is TRUE regarding cash generating units? A B C A cash-generating unit to which goodwill has been allocated should be tested for impairment every five years A cash-generating unit must be a subsidiary of the parent A cash-generating unit is the smallest identifiable group of assets for which independent cash flows can be identified There is no need to consistently identify cash-generating units based on the same types of asset from period to period D Question 14 Which of the following best describes the reasons for allocating a depreciable asset's cost over its useful life? A. To gradually bring the cost of assets into income rather than having to expenses all of the year of acquisition. B. To reduce revenue to take advantage of the tax benefit of owning the assets. C. To match the cost of asset with the revenue it is used to produce. D. To provide suitable measure of market value of the asset on the statement of financial position