UNIVERSITY OF ZAMBIA GRADUATE SCHOOL OF BUSINESS FINANCIAL REPORTING: BAF3010 FINANCIAL REPORTING ASSIGNMENT 2 Due date July 22, 2022 Time 24:00hrs QUESTION ONE ANSWER ALL QUESTIONS The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired. The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. IAS 36 also applies to groups of assets that do not generate cash flows individually (known as cash-generating units). a) Identify and discuss both the Internal and External indicators Impairment