The objective of MFRS 136 Impairment of Assets is to prescribe the conditions and steps that an entity applies to ensure that its assets are not stated in an amount in excess of their recoverable amount in the Statement of Financial Position Required (a) Explain the objective and scope of MFRS 136 Impairment of Assets (5 marks) (b) An asset may be impaired due to many reasons due to changes in the market value or evidence of obsolescence Explain TWO (2) elements of internal and TWO (2) external sources that could assist the entity in determining whether assets need to be impaired or not (8 marks) (c) Discuss the procedure for an impairment review ( 7 marks) QUESTION 2 (20 MARKS) The objective of MERS 136 Impairment of Assets is to prescribe the conditions and steps that an entity applies to ensure that its assets are not stated in an amount in excess of their recoverable amount in the Statement of Financial Position Required (a) Explain the objective and scope of MFRS 136 Impairment of Assets (5 marks) (b) An asset may be impaired due to many reasons due to changes in the market value or evidence of obsolescence Explain TWO (2) elements of internal and TWO (2) external sources that could assist the entity in determining whether assets need to be impaired or not (8 marks) (c) Discuss the procedure for an impairment review (7 marks)

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The objective of MFRS 136 Impairment of Assets is to prescribe the conditions and steps that an entity applies to ensure that its assets are

The objective of MFRS 136 Impairment of Assets is to prescribe the conditions and steps that an entity applies to ensure that its assets are not stated in an amount in excess of their recoverable amount in the Statement of Financial Position.

Required:

(a) Explain the objective and scope of MFRS 136 Impairment of Assets.

(5 marks)

(b)An asset may be impaired due to many reasons due to changes in the market value or evidence of obsolescence. Explain TWO (2) elements of internal and TWO (2) external sources that could assist the entity in determining whether assets need to be impaired or not.

(8 marks)

(7 marks)

QUESTION 2 (20 MARKS) The objective of MERS 136 Impairment of Assets is to prescribe the conditions and steps that an entity applies to ensure that its assets are not stated in an amount in excess of their recoverable amount in the Statement of Financial Position. Required: (a) Explain the objective and scope of MFRS 136 Impairment of Assets. (5 marks) (b) An asset may be impaired due to many reasons due to changes in the market value or evidence of obsolescence. Explain TWO (2) elements of internal and TWO (2) external sources that could assist the entity in determining whether assets need to be impaired or not. (8 marks) (c) Discuss the procedure for an impairment review. (7 marks)