Under IFRS. Gains or losses on disposals of assets do not distort periodic income when the group or composite method is used to compute depreciation.

- generally it is believed if there are gains or losses incurred, it should affect net income.. but I can't understand why that statement is true.

Companies frequently use the composite approach when the assets are similar in nature and have approximately the same useful lives.

-For me, it seems right but answer said it's wrong... Can you explain me why?

Impaired assets held for disposal should be reported at the lower of cost or net realizable value.

-Can you explain me why it is true under IFRS?