{"entries":[{"key":"LX.IAS16.000166","source":"V2","standard_id":"IAS36","concept_ids":["IAS16.IMPAIRMENT.IAS36_LINK"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"MANUFACTURING","tested_point":"IMPAIRMENT_INDICATORS_IN_PPE_FILE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS16.000014","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000014","section_id":"ias36-link"},"references":["IAS 16 §63","IAS 36 §9","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"At year-end, a manufacturer notes the following facts about its extrusion line (cost model). Which are indications of impairment requiring it to estimate the recoverable amount? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"IAS 16 refers to IAS 36 (IAS 16, para. 63). At each reporting date, the entity looks for indications (IAS 36, para. 9); physical damage, plans to discontinue and worse-than-expected performance are among the internal indications (IAS 36, para. 12).","es":""},"common_error":{"fr":"","en":"Looking for indicators only in external sources (market) and overlooking internal ones (damage, closure plans, reporting).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A flood damaged part of the line","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Management approved a plan to shut the line down in 18 months","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Internal reporting shows the line's margin well below budget","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The market price of an equivalent new line has risen by 8%","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in the price of an equivalent new line is not among the impairment indicators to consider. External indicators include a marked and unexpected fall in market value; internal indicators include physical damage, a plan to discontinue the line and performance worse than expected (IAS 36, para. 12), which correspond to options A, B and C. Rule to remember: look for adverse signals; a favourable market movement is not an indicator.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000167","source":"V2","standard_id":"IAS36","concept_ids":["IAS16.IMPAIRMENT.IAS36_LINK"],"dimension":"CALCULATION","format":"CALCULATION","context":"MARITIME","tested_point":"IMPAIRMENT_LOSS_HIGHER_OF_TWO","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS16.000014","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000014","section_id":"ias36-link"},"references":["IAS 36 §18","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"A shipowner (cost model) tests a vessel damaged in a grounding. Calculate the recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"Approach: 1) recoverable amount is the higher of fair value less costs of disposal (1,880,000) and value in use (1,750,000): 1,880,000 (IAS 36, para. 18); 2) it is below the carrying amount of 2,000,000: the asset is written down to 1,880,000 (IAS 36, para. 59); 3) loss = 2,000,000 − 1,880,000 = 120,000, recognised in profit or loss for an asset carried at cost (IAS 36, para. 60). Main trap: using the lower of the two (1,750,000) and recognising a loss of 250,000. Rule to remember: recoverable amount = the higher of the two amounts; the loss is the excess of carrying amount over that amount.","es":""},"common_error":{"fr":"","en":"Using the lower of the two values (1,750,000) and recognising a loss of 250,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"1880000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"1750000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":1880000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":1880000,"unit":"EUR"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"loss = 2,000,000 − 1,880,000 = 120,000, recognised in profit or loss for an asset carried at cost (IAS 36, para. 60).","es":""}}],"rationale":{"fr":"","en":"recoverable amount = the higher of the two amounts; the loss is the excess of carrying amount over that amount.","es":""},"references":["REF.IAS36.18","REF.IAS36.59","REF.IAS36.60"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000168","source":"V2","standard_id":"IAS36","concept_ids":["IAS16.IMPAIRMENT.IAS36_LINK"],"dimension":"CALCULATION","format":"CALCULATION","context":"MARITIME","tested_point":"DEPRECIATION_AFTER_IMPAIRMENT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS16.000014","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000014","section_id":"after-impairment"},"references":["IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Use the vessel: after the loss, carrying amount EUR 1,880,000; residual value EUR 280,000; remaining life 16 years; straight-line. Before the loss, the carrying amount was EUR 2,000,000. Calculate.","es":""},"explanation":{"fr":"","en":"Approach: 1) after an impairment loss, future depreciation is recalculated on the new carrying amount, less residual value, over the remaining life (IAS 36, para. 63): (1,880,000 − 280,000) ÷ 16 = 100,000; 2) before the loss: (2,000,000 − 280,000) ÷ 16 = 107,500; 3) the reduction is 7,500 a year, and 16 × 7,500 = 120,000, the amount of the loss. Main trap: keeping the old charge, which would depreciate the loss already recognised a second time. Rule to remember: after an impairment loss, the depreciable base is the new carrying amount less residual value, spread over the remaining life.","es":""},"common_error":{"fr":"","en":"Continuing to depreciate on the old carrying amount (EUR 2,000,000), or forgetting to recalculate the charge over the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount after the loss","es":""},"value":"1880000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount before the loss","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"280000","unit":"EUR"},{"label":{"fr":"","en":"Remaining life","es":""},"value":"16","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual charge after the loss","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Reduction in the annual charge","es":""},"answer":7500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual charge after the loss","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount after the loss","es":""},"value":1880000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":280000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining life","es":""},"value":16,"unit":"YEARS"}],"result":100000,"unit":"EUR","rationale":{"fr":"","en":"Approach: 1) after an impairment loss, future depreciation is recalculated on the new carrying amount, less residual value, over the remaining life (IAS 36, para. 63): (1,880,000 − 280,000) ÷ 16 = 100,000","es":""}}],"rationale":{"fr":"","en":"after an impairment loss, the depreciable base is the new carrying amount less residual value, spread over the remaining life.","es":""},"references":["REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000169","source":"V2","standard_id":"IAS36","concept_ids":["IAS16.IMPAIRMENT.IAS36_LINK"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MARITIME","tested_point":"IMPAIRMENT_ENTRY_COST_MODEL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS16.000014","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000014","section_id":"entry"},"references":["IAS 16 §30","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"The vessel (cost model, no revaluation surplus) suffers an impairment loss of EUR 120,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Approach: 1) the asset is at cost with no revaluation surplus: the impairment loss is recognised immediately in profit or loss (IAS 36, para. 60): debit impairment loss, 120,000; 2) the counterpart is a credit to accumulated impairment losses, which reduces the carrying amount (IAS 16, para. 30), not to the cost account nor to a revaluation surplus; 3) any insurance compensation does not belong in this entry, as it is a separate event. Check: debit 120,000 = credit 120,000. Main trap: debiting the revaluation surplus or an insurance receivable. Rule to remember: under the cost model, an impairment loss goes to profit or loss and builds up accumulated impairment losses.","es":""},"common_error":{"fr":"","en":"Debiting the revaluation surplus although the asset is at cost, or debiting an expected insurance receivable.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses — vessels","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (OCI)","es":""}},{"id":"INSURANCE_RECEIVABLE","text":{"fr":"","en":"Receivable from insurer","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":120000},{"id":"L2","account":"ACC_IMPAIRMENT","side":"CREDIT","amount":120000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS16.000174","source":"V2","standard_id":"IAS36","concept_ids":["IAS16.IMPAIRMENT.IAS36_LINK","IAS16.IMPAIRMENT.THIRD_PARTY_COMPENSATION"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"ENERGY","tested_point":"CASUALTY_FULL_TREATMENT","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS16.000014","review":{"standard_id":"IAS16","lesson_id":"LS.IAS16.000014","section_id":"numeric-example"},"references":["IAS 16 §65","IAS 16 §66","IAS 16 §67","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Deal with the casualty at the solar farm.","es":""},"explanation":{"fr":"","en":"Approach in three separate events (IAS 16, para. 66). 1) Destroyed panels: derecognition with a loss equal to carrying amount, 200,000 − 60,000 = 140,000, as there is no disposal proceeds (IAS 16, para. 67). Damaged inverter still in service: impairment test, loss = 300,000 − 210,000 = 90,000 (IAS 36, paras. 59 and 60). Charges for N: 230,000. 2) Compensation: 180,000 as income when it becomes receivable, on 15 December N (IAS 16, para. 65); net effect on N profit or loss: loss of 50,000, with each item accounted for separately. 3) Replacement: new panels at their cost of 240,000 in N+1; the compensation does not reduce it. Main trap: using 60,000 (240,000 − 180,000). Rule to remember: loss, compensation and replacement are three distinct treatments, even though they arise from the same event; compensation is recognised only from the time it is receivable.","es":""},"common_error":{"fr":"","en":"Netting the loss, the compensation and the cost of the new panels into one amount, or deducting the compensation from the replacement cost.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"On 12 August N, a violent hailstorm hits a solar farm (cost model; year-end 31 December). Some panels are destroyed; the inverter station is damaged but keeps running. On 15 December N, the insurer agrees in writing to pay EUR 180,000 (assumption: the compensation becomes receivable on that date). In January N+1, the operator buys new panels for EUR 240,000.","es":""},"exhibits":[{"title":{"fr":"","en":"Data on the assets affected","es":""},"body":{"fr":"","en":"- Destroyed panels: cost 200,000; accumulated depreciation 60,000; no salvageable debris.\n- Inverter station: carrying amount 300,000; recoverable amount estimated under IAS 36: 210,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the effects on profit or loss for N.","es":""},"explanation":{"fr":"","en":"Approach: deal with each event separately. Impairment loss on the inverter unit = 300,000 − 210,000 = 90,000 (IAS 36, paras. 59 and 60). Loss on the destroyed panels = 200,000 − 60,000 = 140,000 (IAS 16, para. 67). Expenses = 230,000; compensation income = 180,000 (IAS 16, para. 65); net effect = loss of 50,000. Rule to remember: the loss of the asset, the compensation and the replacement are accounted for separately (IAS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Netting the compensation against the losses: impairment, loss on destroyed assets and compensation are recognised separately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of destroyed panels","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the inverter station","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the inverter station","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Compensation receivable","es":""},"value":"180000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss on the inverter station","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total casualty-related expenses in N","es":""},"answer":230000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Net effect of the casualty on profit or loss for N (loss)","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Impairment loss on the inverter station","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the inverter station","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the inverter station","es":""},"value":210000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"the loss of the asset, the compensation and the replacement are accounted for separately (IAS 16, para. 66).","es":""},"references":["REF.IAS16.65","REF.IAS16.66","REF.IAS16.67","REF.IAS36.59","REF.IAS36.60"]}},{"prompt":{"fr":"","en":"At what amount are the new panels recognised in N+1?","es":""},"explanation":{"fr":"","en":"Approach: find the acquisition cost of the new panels, ignoring the casualty. The purchase of replacement assets is a separate event; its cost is determined under IAS 16 (IAS 16, para. 66): 240,000. Trap: deducting the compensation of 180,000. Rule to remember: the replacement asset is recognised at its cost (IAS 16, para. 66).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 240,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"EUR 60,000 (240,000 − 180,000)","es":""},"correct":false,"feedback":{"fr":"","en":"The compensation does not reduce the cost of the replacement: buying the new panels is a separate event from the loss and the compensation (IAS 16, para. 66). Deducting 180,000 from 240,000 mixes these events and understates the asset at 60,000. Rule to remember: the replacement asset is recognised at its own cost, without deducting the compensation (IAS 16, para. 66).","es":""}},{"id":"C","text":{"fr":"","en":"EUR 140,000, the carrying amount of the destroyed panels","es":""},"correct":false,"feedback":{"fr":"","en":"The new asset is a separate purchase, recognised at its own cost of 240,000 (IAS 16, para. 66): the carrying amount of the destroyed panels, 140,000, was derecognised with the loss and is not carried over to the replacement. Rule to remember: the cost of a replacement asset does not depend on the carrying amount of the destroyed asset (IAS 16, para. 66).","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Had the insurer only given its agreement in February N+1 (with the compensation not receivable at 31 December N), the entity could nevertheless have reduced the N loss by the expected amount.","es":""},"explanation":{"fr":"","en":"False. Approach: find the date on which the compensation becomes receivable. Compensation is recognised in profit or loss when it becomes receivable (IAS 16, para. 65) and is not offset against the loss (IAS 16, para. 66). Trap: anticipating compensation that is not yet receivable. Rule to remember: compensation that is not receivable at the reporting date is not recognised at that date (IAS 16, para. 65).","es":""},"common_error":{"fr":"","en":"Anticipating compensation not yet receivable: it is only recognised when it becomes receivable.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000001","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OBJECTIVE_CAP_NOT_REVALUATION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1","IAS 36 §8"],"exercise":{"prompt":{"fr":"","en":"Under IAS 36, a machine whose recoverable amount (900,000) exceeds its carrying amount (700,000) must be written up to 900,000.","es":""},"explanation":{"fr":"","en":"False. IAS 36 only aims to ensure that no asset is carried at more than is recoverable (IAS 36, para. 1): it sets a ceiling, not a revaluation. Here carrying amount is below recoverable amount, the asset is not impaired (IAS 36, para. 8) and stays at 700,000.","es":""},"common_error":{"fr":"","en":"Believing that IAS 36 adjusts assets in both directions, like fair value measurement.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000002","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SCOPE_IN_OR_OUT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2","IAS 36 §4","IAS 36 §5","IAS 16 §63","IAS 38 §111"],"exercise":{"prompt":{"fr":"","en":"A diversified conglomerate lists its assets. Classify each one according to whether its impairment falls under IAS 36 or another standard.","es":""},"explanation":{"fr":"","en":"The wind farm is property, plant and equipment (IAS 16, para. 63), the customer list is an intangible asset (IAS 38, para. 111) and the investment in an associate falls expressly under IAS 36 (IAS 36, para. 4). Investment property is excluded only if measured at fair value: at cost, it stays within scope (IAS 36, para. 5). Excluded: investment property measured at fair value, biological assets at fair value less costs to sell, contract assets and assets held for sale (IAS 36, para. 2).","es":""},"common_error":{"fr":"","en":"Excluding any 'investment' because it is a financial asset, or excluding all investment property without looking at its measurement basis.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IAS36","text":{"fr":"","en":"Falls under IAS 36","es":""}},{"id":"OTHER","text":{"fr":"","en":"Falls under another standard","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A wind farm operated by the group","es":""},"category":"IAS36"},{"id":"I2","text":{"fr":"","en":"An acquired customer list, amortised over 6 years","es":""},"category":"IAS36"},{"id":"I3","text":{"fr":"","en":"An office building let to third parties, measured at fair value","es":""},"category":"OTHER"},{"id":"I4","text":{"fr":"","en":"Investment property measured under the cost model","es":""},"category":"IAS36"},{"id":"I5","text":{"fr":"","en":"Livestock measured at fair value less costs to sell","es":""},"category":"OTHER"},{"id":"I6","text":{"fr":"","en":"A contract asset on a construction project billed in stages","es":""},"category":"OTHER"},{"id":"I7","text":{"fr":"","en":"A 35% investment in an associate","es":""},"category":"IAS36"},{"id":"I8","text":{"fr":"","en":"A logistics depot classified as held for sale","es":""},"category":"OTHER"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000003","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HOLDING","tested_point":"INVESTMENTS_IN_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"investments-rule"},"references":["IAS 36 §2","IAS 36 §4"],"exercise":{"prompt":{"fr":"","en":"Case data: in its separate financial statements, Orvane holds (a) 60% of a subsidiary, accounted for at cost, and (b) 5% of the listed shares of a supplier, with no significant influence. For each investment, does the question of a possible impairment fall under IAS 36 or IFRS 9?","es":""},"explanation":{"fr":"","en":"IAS 36 applies to investments in subsidiaries, associates and joint ventures; impairment of other financial assets falls under IFRS 9 (IAS 36, paras. 2 and 4).","es":""},"common_error":{"fr":"","en":"Reasoning only on the 'financial' nature of the asset, without looking at control or influence.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 36 for both","es":""},"correct":false,"feedback":{"fr":"","en":"The 5% holding with no significant influence is an IFRS 9 financial asset, excluded from IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 36 for the subsidiary; IFRS 9 for the 5%","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 9 for both, as they are financial assets","es":""},"correct":false,"feedback":{"fr":"","en":"Investments in subsidiaries are expressly within the scope of IAS 36.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 9 for the subsidiary; IAS 36 for the 5%","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the subsidiary falls under IAS 36, the minority holding under IFRS 9.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000004","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"EXCLUSIONS_OWN_STANDARD","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2","IAS 36 §3","IAS 16 §63"],"exercise":{"prompt":{"fr":"","en":"These assets are excluded from IAS 36 because another standard already sets their measurement. Match each one with the standard that governs it.","es":""},"explanation":{"fr":"","en":"These categories are among the IAS 36 exclusions (IAS 36, para. 2), because their own standards already contain recognition and measurement rules (IAS 36, para. 3). Within IFRS, the standard governing each of these assets is IAS 2 for inventories, IAS 12 for deferred tax, IFRS 9 for trade receivables (financial assets), IFRS 5 for assets held for sale and IAS 40 for investment property at fair value. IAS 16 is a distractor: on the contrary, it refers to IAS 36 (IAS 16, para. 63).","es":""},"common_error":{"fr":"","en":"Linking one of these assets to IAS 16: it actually refers back to IAS 36; each excluded asset follows its own standard (IAS 2, IAS 12, IFRS 9, IFRS 5, IAS 40).","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Inventories","es":""}},{"id":"L2","text":{"fr":"","en":"Deferred tax assets","es":""}},{"id":"L3","text":{"fr":"","en":"Trade receivables from customers","es":""}},{"id":"L4","text":{"fr":"","en":"Non-current assets held for sale","es":""}},{"id":"L5","text":{"fr":"","en":"Investment property measured at fair value","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"IAS 2","es":""}},{"id":"R2","text":{"fr":"","en":"IAS 12","es":""}},{"id":"R3","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"R4","text":{"fr":"","en":"IFRS 5","es":""}},{"id":"R5","text":{"fr":"","en":"IAS 40","es":""}},{"id":"R6","text":{"fr":"","en":"IAS 16","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000005","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"SCOPE_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"pitfalls"},"references":["IAS 36 §2","IAS 36 §4","IAS 36 §5","IFRS 16 §33","IAS 16 §63"],"exercise":{"prompt":{"fr":"","en":"An assistant has drafted a telecom operator's IAS 36 scope memo. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Property, plant and equipment falls under IAS 36 (IAS 16, para. 63) and inventories are excluded (IAS 36, para. 2). Investments in joint ventures (IAS 36, para. 4), right-of-use assets (IFRS 16, para. 33) and revalued assets (IAS 36, para. 5) stay within scope.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Our towers and antennas, as property, plant and equipment, fall under IAS 36.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Our 40% interest in a joint venture is a financial asset, so it is outside the scope of IAS 36.","es":""},"erroneous":true,"correction":{"fr":"","en":"Investments in joint ventures fall under IAS 36 (IAS 36, para. 4).","es":""}},{"id":"S3","text":{"fr":"","en":"Right-of-use assets for leased sites fall under IFRS 16 and are therefore excluded from IAS 36.","es":""},"erroneous":true,"correction":{"fr":"","en":"IFRS 16 refers to IAS 36 for the impairment of right-of-use assets (IFRS 16, para. 33).","es":""}},{"id":"S4","text":{"fr":"","en":"Inventories of handsets held for resale are outside the scope of IAS 36.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The head office, measured under the revaluation model, does not need to be considered under IAS 36.","es":""},"erroneous":true,"correction":{"fr":"","en":"A revalued asset stays within scope: revaluation first, then the IAS 36 review (IAS 36, para. 5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000006","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"REVALUED_ASSET_IMPAIRMENT","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"revalued-assets"},"references":["IAS 36 §5","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Analyse the hotel's situation and answer the questions.","es":""},"explanation":{"fr":"","en":"A revalued asset remains subject to IAS 36; when its costs of disposal are not negligible, it is impaired if its value in use is below the revalued amount (IAS 36, para. 5).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a hotel group measures its hotels under the IAS 16 revaluation model. At the reporting date, after applying that model, the harbour hotel is revalued to 2,400,000. The direct costs of selling it (legal fees, transfer duties) are estimated at 60,000. Its value in use, calculated by management control, is 2,300,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Must the revalued hotel be considered under IAS 36?","es":""},"explanation":{"fr":"","en":"The revaluation is first applied under IAS 16, then IAS 36 to assess any impairment (IAS 36, para. 5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, the revaluation is enough","es":""},"correct":false,"feedback":{"fr":"","en":"Revalued assets stay within the scope of IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, after applying the revaluation model","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, but before the revaluation","es":""},"correct":false,"feedback":{"fr":"","en":"The order is the reverse: the revaluation is applied first.","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the amounts of the test.","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal = 2,400,000 − 60,000 = 2,340,000. Recoverable amount = max(2,340,000; 2,300,000) = 2,340,000. As the costs of disposal are not negligible and value in use is below the revalued amount, the hotel is impaired: 2,400,000 − 2,340,000 = 60,000 (IAS 36, para. 5). This loss is treated as a revaluation decrease (IAS 36, para. 60).","es":""},"common_error":{"fr":"","en":"Concluding that a revalued asset cannot be impaired: with non-negligible disposal costs and a lower value in use, it is impaired by the amount of those costs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Revalued amount","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Direct costs of disposal (legal fees, duties)","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"2300000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":2340000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Recoverable amount","es":""},"answer":2340000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Direct costs of disposal (legal fees, duties)","es":""},"value":60000,"unit":"EUR"}],"result":2340000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":2340000,"unit":"EUR"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"As the costs of disposal are not negligible and value in use is below the revalued amount, the hotel is impaired: 2,400,000 − 2,340,000 = 60,000 (IAS 36, para. 5).","es":""}}],"references":["REF.IAS36.5","REF.IAS36.60"]}},{"prompt":{"fr":"","en":"Had the hotel's costs of disposal been negligible, it would have been unlikely to be impaired.","es":""},"explanation":{"fr":"","en":"True. Fair value and fair value less costs of disposal differ only by the direct costs of disposal; if they are negligible, the revalued asset is unlikely to be impaired (IAS 36, para. 5).","es":""},"common_error":{"fr":"","en":"Thinking a revalued asset is always exposed to a loss: if disposal costs are negligible, the risk is low.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000007","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"OBJECTIVE_STATEMENT","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS36.000001","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"understand"},"references":["IAS 36 §1","IAS 36 §8"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence that sums up IAS 36.","es":""},"explanation":{"fr":"","en":"The objective of IAS 36 is that no asset is carried at more than is recoverable, that is its recoverable amount (IAS 36, para. 1); the asset is impaired when its carrying amount exceeds its recoverable amount (IAS 36, para. 8).","es":""},"common_error":{"fr":"","en":"Taking original cost as the ceiling or comparing value in use: the ceiling is recoverable amount, compared with carrying amount.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"An asset must not be carried at more than its {{ceiling}}; when its {{compared}} exceeds that amount, the asset is impaired.","es":""},"blanks":[{"id":"ceiling","mode":"CHOICE","choices":[{"id":"RECOVERABLE","text":{"fr":"","en":"recoverable amount","es":""}},{"id":"COST","text":{"fr":"","en":"original cost","es":""}},{"id":"FAIR_VALUE","text":{"fr":"","en":"gross fair value","es":""}}],"answer":"RECOVERABLE"},{"id":"compared","mode":"CHOICE","choices":[{"id":"CARRYING","text":{"fr":"","en":"carrying amount","es":""}},{"id":"VALUE_IN_USE","text":{"fr":"","en":"value in use","es":""}},{"id":"RESIDUAL","text":{"fr":"","en":"residual value","es":""}}],"answer":"CARRYING"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000008","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"KEY_TERMS_MEANING","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6","IAS 36 §28","IAS 36 §68","IAS 36 §100"],"exercise":{"prompt":{"fr":"","en":"Match each IAS 36 term with its meaning.","es":""},"explanation":{"fr":"","en":"Reworded IAS 36 definitions (IAS 36, para. 6); examples of costs of disposal (IAS 36, para. 28), CGUs (IAS 36, para. 68) and corporate assets (IAS 36, para. 100). New replacement cost is not an IAS 36 notion.","es":""},"common_error":{"fr":"","en":"Taking replacement cost new as an IAS 36 concept: it is not one.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Carrying amount","es":""}},{"id":"L2","text":{"fr":"","en":"Costs of disposal of the asset","es":""}},{"id":"L3","text":{"fr":"","en":"Cash-generating unit","es":""}},{"id":"L4","text":{"fr":"","en":"Corporate assets","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Amount of the asset on the balance sheet after accumulated depreciation and impairment losses","es":""}},{"id":"R2","text":{"fr":"","en":"Incremental costs directly attributable to disposing of the asset, excluding finance costs and income tax","es":""}},{"id":"R3","text":{"fr":"","en":"Smallest identifiable group of assets generating largely independent cash inflows","es":""}},{"id":"R4","text":{"fr":"","en":"Assets, other than goodwill, that contribute to the cash flows of several CGUs","es":""}},{"id":"R5","text":{"fr":"","en":"Price that would have to be paid today to buy an identical new asset","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000009","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"IMPAIRMENT_CHAIN","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"numeric-example"},"references":["IAS 36 §6","IAS 36 §18","IAS 36 §31","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"An energy producer tests a turbine at the reporting date (indicator: lasting fall in electricity prices). Cash flows are received at year-end; the 10% pre-tax rate is case data. Calculate each step.","es":""},"explanation":{"fr":"","en":"Carrying amount = 2,000,000 − 800,000 = 1,200,000. Fair value less costs of disposal = 1,000,000 − 40,000 = 960,000 (carrying amount and costs of disposal are among the terms defined in IAS 36, para. 6). Value in use = 330,000 / 1.10 + 363,000 / 1.21 + 399,300 / 1.331 = 300,000 + 300,000 + 300,000 = 900,000 (IAS 36, para. 31). Recoverable amount = max(960,000; 900,000) = 960,000 (IAS 36, para. 18). Loss = 1,200,000 − 960,000 = 240,000 (IAS 36, para. 59). Here, selling would bring in more than using.","es":""},"common_error":{"fr":"","en":"Taking value in use (900,000) because it took the longest calculation, which gives a loss of 300,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the turbine","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Estimated selling price (fair value)","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Dismantling and transport costs to sell it","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow year 1","es":""},"value":"330000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow year 2","es":""},"value":"363000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow year 3 (final year)","es":""},"value":"399300","unit":"EUR"},{"label":{"fr":"","en":"Pre-tax discount rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":960000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Value in use","es":""},"answer":900000,"tolerance":5,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Recoverable amount","es":""},"answer":960000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Impairment loss","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the turbine","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":800000,"unit":"EUR"}],"result":1200000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated selling price (fair value)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Dismantling and transport costs to sell it","es":""},"value":40000,"unit":"EUR"}],"result":960000,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":960000,"unit":"EUR"}],"result":240000,"unit":"EUR"}],"references":["REF.IAS36.6","REF.IAS36.18","REF.IAS36.31","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000010","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"ONE_MEASURE_ABOVE_CARRYING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"recoverable-rule"},"references":["IAS 36 §8","IAS 36 §19"],"exercise":{"prompt":{"fr":"","en":"Case data: an owned store has a carrying amount of 750,000. An investor offers 800,000; selling costs are estimated at 20,000. Value in use has not yet been calculated. What does the controller conclude?","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal = 800,000 − 20,000 = 780,000 > 750,000. If either measure exceeds carrying amount, the asset is not impaired and the other need not be calculated (IAS 36, paras. 8 and 19).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The controller must first calculate value in use before concluding anything","es":""},"correct":false,"feedback":{"fr":"","en":"Unnecessary: one of the two measures already exceeds carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"No impairment loss; calculating value in use is unnecessary","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A loss of 30,000 must be recognised","es":""},"correct":false,"feedback":{"fr":"","en":"780,000 exceeds 750,000: there is no loss.","es":""}},{"id":"D","text":{"fr":"","en":"The store must be written up to 780,000","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 never writes an asset up.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000011","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"COSTS_OF_DISPOSAL_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6","IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"A manufacturer is estimating the fair value less costs of disposal of a press. Classify each cost.","es":""},"explanation":{"fr":"","en":"Costs of disposal are the incremental costs directly attributable to the disposal, excluding finance costs and income tax (IAS 36, para. 6): legal costs, transaction duties and taxes, removal costs and direct costs of bringing the asset into condition for sale. Termination benefits and reorganisation costs following the disposal are not part of them (IAS 36, para. 28).","es":""},"common_error":{"fr":"","en":"Deducting every cost 'remotely connected' with the disposal, including the reorganisation that follows.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DEDUCTED","text":{"fr":"","en":"Cost of disposal to deduct","es":""}},{"id":"NOT_DEDUCTED","text":{"fr":"","en":"Not part of the costs of disposal","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Legal fees for the sale","es":""},"category":"DEDUCTED"},{"id":"I2","text":{"fr":"","en":"Transaction taxes payable by the seller","es":""},"category":"DEDUCTED"},{"id":"I3","text":{"fr":"","en":"Dismantling and removal of the press","es":""},"category":"DEDUCTED"},{"id":"I4","text":{"fr":"","en":"Direct reconditioning to make the press saleable","es":""},"category":"DEDUCTED"},{"id":"I5","text":{"fr":"","en":"Termination benefits for operators after the sale","es":""},"category":"NOT_DEDUCTED"},{"id":"I6","text":{"fr":"","en":"Reorganising the workshop after the disposal","es":""},"category":"NOT_DEDUCTED"},{"id":"I7","text":{"fr":"","en":"Interest on the loan that financed the press","es":""},"category":"NOT_DEDUCTED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000012","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"IMPAIRMENT_ENTRY_COST_MODEL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"entry"},"references":["IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Case data: a fleet of forklift trucks, measured at cost, has a carrying amount of 280,000 and a recoverable amount of 205,000. Record the impairment entry.","es":""},"explanation":{"fr":"","en":"Loss = 280,000 − 205,000 = 75,000 (IAS 36, para. 59). For an asset at cost, it is recognised immediately in profit or loss (IAS 36, para. 60): debit the impairment loss, credit accumulated impairment losses. The revaluation surplus only concerns revalued assets; depreciation expense must not be confused with the impairment loss.","es":""},"common_error":{"fr":"","en":"Debiting the revaluation surplus or booking the loss as depreciation: for an asset at cost, it is an impairment loss in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS_PL","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses – forklifts","es":""}},{"id":"REVALUATION_SURPLUS_OCI","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS_PL","side":"DEBIT","amount":75000},{"id":"L2","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":75000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000013","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"FAIR_VALUE_VS_VALUE_IN_USE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"recoverable-rule"},"references":["IAS 36 §18","IAS 36 §19","IAS 36 §53A"],"exercise":{"prompt":{"fr":"","en":"Which statements are correct?","es":""},"explanation":{"fr":"","en":"Fair value reflects market participants' view, value in use entity-specific factors such as synergies (IAS 36, para. 53A). Recoverable amount is the higher of the two (IAS 36, para. 18) and one is enough if it exceeds carrying amount (IAS 36, para. 19).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value reflects the assumptions of market participants.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Value in use can reflect synergies specific to the entity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recoverable amount is the lower of the two amounts, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the higher of the two (IAS 36, para. 18).","es":""}},{"id":"D","text":{"fr":"","en":"If fair value less costs of disposal exceeds carrying amount, value in use need not be calculated.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Fair value includes the synergies that only the entity can obtain.","es":""},"correct":false,"feedback":{"fr":"","en":"These entity-specific factors belong in value in use, not fair value (IAS 36, para. 53A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000014","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDIA","tested_point":"CHAIN_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"pitfalls"},"references":["IAS 36 §18","IAS 36 §31","IAS 36 §60","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"An assistant has tested a media group's recording studio (asset at cost). Spot the incorrect steps.","es":""},"explanation":{"fr":"","en":"Steps 1, 2 and 5 are correct (the loss on an asset at cost goes to profit or loss, IAS 36, para. 60). The errors: undiscounted cash flows (IAS 36, para. 31), choosing the lower instead of the higher (IAS 36, para. 18) and depreciation not recalculated (IAS 36, para. 63).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Carrying amount = cost 900,000 − accumulated depreciation 300,000 = 600,000.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Fair value less costs of disposal = 520,000 − 20,000 = 500,000.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Value in use = sum of the cash flows of the next three years, 3 × 190,000 = 570,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"Value in use is a present value: the cash flows must be discounted (IAS 36, para. 31).","es":""}},{"id":"S4","text":{"fr":"","en":"Recoverable amount = the lower of the two amounts, i.e. 500,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"Recoverable amount is the higher of the two amounts (IAS 36, para. 18).","es":""}},{"id":"S5","text":{"fr":"","en":"The loss is recognised in profit or loss.","es":""},"erroneous":false},{"id":"S6","text":{"fr":"","en":"Future depreciation is still calculated on the old base of 600,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"After a loss, depreciation is recalculated on the new carrying amount over the remaining life (IAS 36, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000015","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRIFOOD","tested_point":"IMPAIRMENT_CHAIN","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"numeric-example"},"references":["IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A bottling line has a carrying amount of 250,000, fair value less costs of disposal of 180,000 and value in use of 210,000. Complete.","es":""},"explanation":{"fr":"","en":"Recoverable amount = max(180,000; 210,000) = 210,000 (IAS 36, para. 18). Loss = 250,000 − 210,000 = 40,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Taking 180,000 and finding a loss of 70,000.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Recoverable amount: EUR {{recoverable}}. Impairment loss: EUR {{loss}}.","es":""},"blanks":[{"id":"recoverable","mode":"NUMBER","answer":210000,"tolerance":0},{"id":"loss","mode":"NUMBER","answer":40000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000016","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"MINI_CASE","context":"RETAIL","tested_point":"IMPAIRMENT_AND_SUBSEQUENT_DEPRECIATION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS36.000002","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"entry"},"references":["IAS 36 §18","IAS 36 §59","IAS 36 §60","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Deal with the impairment of the store fittings.","es":""},"explanation":{"fr":"","en":"The full chain: carrying amount 360,000, recoverable amount 270,000 (value in use), loss of 90,000 in profit or loss, then the charge reduced to 45,000 per year (IAS 36, paras. 18, 59, 60 and 63).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a fashion retailer has installed fittings costing 600,000 in a store, depreciated on a straight-line basis over 10 years with no residual value. After 4 years, footfall at the shopping centre collapses. If sold, the fittings would fetch almost nothing (fair value less costs of disposal: 150,000). Value in use, calculated by management control over the 6 remaining years, is 270,000. Teaching assumption: remaining life and straight-line method unchanged after the test.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate carrying amount, recoverable amount and the loss.","es":""},"explanation":{"fr":"","en":"Accumulated depreciation = 600,000 × 4 / 10 = 240,000; carrying amount = 360,000. Recoverable amount = max(150,000; 270,000) = 270,000 (IAS 36, para. 18). Loss = 360,000 − 270,000 = 90,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Comparing with gross cost or using the lower of the two measures: the net carrying amount is compared with the higher of the two measures.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the fittings","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Total useful life","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Years elapsed","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Recoverable amount","es":""},"answer":270000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":270000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"references":["REF.IAS36.18","REF.IAS36.59"]}},{"prompt":{"fr":"","en":"Record the loss.","es":""},"explanation":{"fr":"","en":"Asset at cost: the loss of 90,000 is recognised immediately in profit or loss (IAS 36, para. 60). No cash flow is involved.","es":""},"common_error":{"fr":"","en":"Debiting the revaluation surplus: for an asset at cost, the loss goes immediately to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS_PL","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses – fittings","es":""}},{"id":"ACCUMULATED_DEPRECIATION","text":{"fr":"","en":"Accumulated depreciation – fittings","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS_PL","side":"DEBIT","amount":90000},{"id":"L2","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":90000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"Calculate the annual charge before and after the loss.","es":""},"explanation":{"fr":"","en":"Before: 600,000 / 10 = 60,000 per year. After: depreciation is recalculated on the new carrying amount over the remaining life (IAS 36, para. 63): 270,000 / 6 = 45,000 per year.","es":""},"common_error":{"fr":"","en":"Keeping the original depreciation after the loss: it is recomputed on the new carrying amount over the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Remaining life","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual charge before the loss","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual charge after the loss","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual charge before the loss","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"a fashion retailer has installed fittings costing 600,000 in a store","es":""},"value":600000},{"symbol":"b","meaning":{"fr":"","en":"depreciated on a straight-line basis over 10 years with no residual value","es":""},"value":10}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"After: depreciation is recalculated on the new carrying amount over the remaining life (IAS 36, para. 63): 270,000 / 6 = 45,000 per year.","es":""},"references":["REF.IAS36.63"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000017","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"SOFTWARE","tested_point":"NO_INDICATOR_NO_ESTIMATE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9","IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Case data: at the reporting date, a software publisher identifies no indication of impairment. It holds servers depreciated over 4 years, an acquired licence amortised over 5 years and a capitalised development project, still in progress, that will only be available for use next year. True or false: only the project in progress must be tested for impairment this year.","es":""},"explanation":{"fr":"","en":"True. Without an indication, the servers and the amortised licence require no estimate of recoverable amount (IAS 36, para. 9). An intangible asset not yet available for use, on the other hand, is tested every year, even without an indication (IAS 36, para. 10).","es":""},"common_error":{"fr":"","en":"Thinking that an asset still in progress, not yet amortised, escapes any test until it is brought into use.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000018","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"NOT_YET_AVAILABLE_RATIONALE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"why"},"references":["IAS 36 §10","IAS 36 §11"],"exercise":{"prompt":{"fr":"","en":"Why is a capitalised development project, still in progress, tested every year even with no indicator?","es":""},"explanation":{"fr":"","en":"An intangible asset not yet available for use is tested every year (IAS 36, para. 10), because its ability to generate sufficient future benefits to recover its carrying amount is more uncertain (IAS 36, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because its ability to generate sufficient future benefits is more uncertain","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because it is amortised faster than other assets","es":""},"correct":false,"feedback":{"fr":"","en":"An asset not yet available for use is precisely not yet amortised.","es":""}},{"id":"C","text":{"fr":"","en":"Because it is measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires fair value measurement; that is not the reason for the test.","es":""}},{"id":"D","text":{"fr":"","en":"Because IAS 38 prohibits capitalising development","es":""},"correct":false,"feedback":{"fr":"","en":"On the contrary, IAS 38 requires capitalisation when its criteria are met.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000019","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"ANNUAL_TEST_CATEGORIES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §9","IAS 36 §10","IAS 38 §108"],"exercise":{"prompt":{"fr":"","en":"A telecom operator is preparing its year-end; no indicator has been identified. Classify each asset.","es":""},"explanation":{"fr":"","en":"Acquired goodwill, the indefinite-life brand and the software not yet available for use are tested every year, indicator or not (IAS 36, para. 10; IAS 38, para. 108). The amortised licence, the antennas and the right-of-use assets are tested only if there is an indicator (IAS 36, para. 9).","es":""},"common_error":{"fr":"","en":"Believing that every intangible is tested every year, including a finite-life licence already in use.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ANNUAL","text":{"fr":"","en":"Tested this year despite no indicator","es":""}},{"id":"INDICATOR_ONLY","text":{"fr":"","en":"Tested only if there is an indicator","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Spectrum licence amortised over 15 years","es":""},"category":"INDICATOR_ONLY"},{"id":"I2","text":{"fr":"","en":"Goodwill from the acquisition of a regional operator","es":""},"category":"ANNUAL"},{"id":"I3","text":{"fr":"","en":"Acquired brand with an indefinite useful life","es":""},"category":"ANNUAL"},{"id":"I4","text":{"fr":"","en":"Internally developed and capitalised billing software, not yet in use","es":""},"category":"ANNUAL"},{"id":"I5","text":{"fr":"","en":"Mobile network antennas","es":""},"category":"INDICATOR_ONLY"},{"id":"I6","text":{"fr":"","en":"Right-of-use assets for leased shops","es":""},"category":"INDICATOR_ONLY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000020","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FOOD_BEVERAGE","tested_point":"TEST_BEFORE_YEAR_END_NEW_ACQUISITION","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"test-date"},"references":["IAS 36 §10","IAS 36 §96"],"exercise":{"prompt":{"fr":"","en":"Case data: a food group has a 31 December year-end and tests its CGUs carrying goodwill every 31 October. On 1 December N, it acquires a brewery; the resulting goodwill is allocated to a new CGU. When must that CGU be tested for the first time?","es":""},"explanation":{"fr":"","en":"The annual test may take place at any time during the year, at the same time every year; but if part of a CGU's goodwill arose from a business combination during the year, the CGU is tested before the end of that year (IAS 36, para. 96). The same logic applies to an intangible recognised during the year (IAS 36, para. 10).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"31 October N+1, the group's usual date","es":""},"correct":false,"feedback":{"fr":"","en":"Too late: the goodwill arose from a business combination in year N.","es":""}},{"id":"B","text":{"fr":"","en":"Before 31 December N","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only if an indicator appears","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is tested every year, indicator or not.","es":""}},{"id":"D","text":{"fr":"","en":"Not before three years, the integration period","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides no such grace period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000021","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"MEDIA","tested_point":"DIFFERENT_DATES_PER_CGU","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"test-date"},"references":["IAS 36 §96"],"exercise":{"prompt":{"fr":"","en":"A media group may test its 'Press' CGU on 30 June and its 'Radio' CGU on 30 November, provided it keeps these dates every year.","es":""},"explanation":{"fr":"","en":"True. The annual test of a CGU carrying goodwill may take place at any time during the year, provided it is at the same time every year, and different CGUs may be tested at different times (IAS 36, para. 96).","es":""},"common_error":{"fr":"","en":"Requiring a single test date for all CGUs: each CGU may have its own date, provided it is the same each year.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000022","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT","IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"CLOSING_REVIEW_SEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"how"},"references":["IAS 36 §2","IAS 36 §9","IAS 36 §10","IAS 36 §17","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Put the impairment review at a reporting date in a logical order.","es":""},"explanation":{"fr":"","en":"Once the scope is determined (IAS 36, para. 2), the annual-test assets are identified (IAS 36, para. 10) and indicators looked for across all assets (IAS 36, para. 9); recoverable amount is then estimated where required, any loss recognised (IAS 36, para. 59), then the depreciation plan reviewed if an indicator requires it (IAS 36, para. 17). This order is a teaching approach.","es":""},"common_error":{"fr":"","en":"Estimating recoverable amount for all assets without looking for indicators, or forgetting to review depreciation when there is no loss.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Determine the assets within the scope of IAS 36 (exclusions set aside)","es":""}},{"id":"S2","text":{"fr":"","en":"For each one, identify whether it is subject to the annual test (indefinite-life or not-yet-available intangibles, goodwill) and look for indicators of impairment","es":""}},{"id":"S3","text":{"fr":"","en":"Estimate the recoverable amount of assets with an indicator or subject to the annual test","es":""}},{"id":"S4","text":{"fr":"","en":"Compare with carrying amount and recognise any loss","es":""}},{"id":"S5","text":{"fr":"","en":"Even with no loss, review useful life, depreciation method and residual value of assets affected by an indicator","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000023","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"ANNUAL_TEST_REVEALS_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"numeric-example"},"references":["IAS 36 §10","IAS 36 §18","IAS 36 §59","IAS 38 §107"],"exercise":{"prompt":{"fr":"","en":"Case data: a TV broadcaster holds an acquired brand with an indefinite useful life, not amortised. No indicator has been identified, but the annual test takes place as every year on 30 September. Calculate.","es":""},"explanation":{"fr":"","en":"The brand, not amortised (IAS 38, para. 107), is tested every year even with no indicator (IAS 36, para. 10). Recoverable amount = max(2,050,000; 2,180,000) = 2,180,000 (IAS 36, para. 18). Loss = 2,400,000 − 2,180,000 = 220,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Concluding 'no indicator, so no loss' without performing the annual test.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the brand","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"2050000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"2180000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":2180000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss","es":""},"answer":220000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the brand","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":2180000,"unit":"EUR"}],"result":220000,"unit":"EUR"}],"rationale":{"fr":"","en":"The brand, not amortised (IAS 38, para. 107), is tested every year even with no indicator (IAS 36, para. 10).","es":""},"references":["REF.IAS36.10","REF.IAS36.18","REF.IAS36.59","REF.IAS38.107"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000024","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT","IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TELECOM","tested_point":"ANNUAL_TEST_DOES_NOT_REPLACE_INDICATORS","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §9","IAS 36 §10","IAS 36 §17","IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"Analyse Nexa's year-end and answer.","es":""},"explanation":{"fr":"","en":"Two triggers coexist: the calendar (annual test of the goodwill and of the project, IAS 36, para. 10) and the signal (November indicator, IAS 36, paras. 9 and 90). The first never cancels out the second.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: the operator Nexa has a 31 December N year-end. Its 'Fixed network' CGU, which carries goodwill, was tested on 30 September N as every year: recoverable amount exceeded carrying amount by 15%. In November N, the regulator imposes a sharp cut in wholesale tariffs, which directly weighs on fixed network revenue. Nexa is also developing a capitalised app, not yet in use, whose project is on plan.","es":""},"parts":[{"prompt":{"fr":"","en":"What must Nexa do for the 'Fixed network' CGU at 31 December N?","es":""},"explanation":{"fr":"","en":"A CGU carrying goodwill is tested every year and whenever there is an indicator (IAS 36, para. 90); at the year-end, the November indicator requires recoverable amount to be estimated (IAS 36, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: the September annual test covers the year","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test does not exempt the entity from testing again when an indicator appears.","es":""}},{"id":"B","text":{"fr":"","en":"Estimate recoverable amount again at the year-end, because of the November indicator","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Directly recognise a loss equal to 15% of carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"An indicator triggers a calculation, not a flat-rate loss.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Since the app project is on plan, Nexa may skip testing it this year.","es":""},"explanation":{"fr":"","en":"False. An intangible asset not yet available for use is tested every year, even with no indicator (IAS 36, para. 10).","es":""},"common_error":{"fr":"","en":"Exempting a project on track from the test: an intangible not yet available for use is tested every year, even without an indicator.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"If the new test shows no loss, Nexa may still have to review the useful life of some fixed network equipment.","es":""},"explanation":{"fr":"","en":"True. An indicator may lead to a review of useful life, depreciation method or residual value, even with no loss (IAS 36, para. 17).","es":""},"common_error":{"fr":"","en":"Thinking a test with no loss ends the analysis: the indicator may require reviewing useful life, depreciation method or residual value.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000025","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT","IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"CLOSING_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000003","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"pitfalls"},"references":["IAS 36 §9","IAS 36 §10","IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"Here is a laboratory's year-end memo (31 December year-end, annual tests usually in June). Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"An estimate of recoverable amount is required only when there is an indicator: it is therefore not required for the plants with no indicator, but it is for the damaged line (IAS 36, para. 9). On the other hand, goodwill, the project not yet available for use and the indefinite-life brand are subject to the annual test, before the year-end for the brand acquired during the year (IAS 36, paras. 10 and 90).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Goodwill was not tested this year, as no indicator was identified.","es":""},"erroneous":true,"correction":{"fr":"","en":"Acquired goodwill is tested every year, indicator or not (IAS 36, paras. 10 and 90).","es":""}},{"id":"S2","text":{"fr":"","en":"The development project in progress, not being amortised, does not need to be tested before it is brought into use.","es":""},"erroneous":true,"correction":{"fr":"","en":"An intangible asset not yet available for use is tested every year (IAS 36, para. 10).","es":""}},{"id":"S3","text":{"fr":"","en":"The plants with no indicator were not subject to a formal estimate of recoverable amount.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The indefinite-life brand acquired in October will be tested for the first time next June.","es":""},"erroneous":true,"correction":{"fr":"","en":"An intangible recognised during the year is tested before the end of that year (IAS 36, para. 10).","es":""}},{"id":"S5","text":{"fr":"","en":"The damaged packaging line was subject to an estimate of its recoverable amount.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000026","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"AUTOMOTIVE","tested_point":"INDICATOR_FAMILIES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"internal-indicators"},"references":["IAS 36 §12","IAS 36 §14"],"exercise":{"prompt":{"fr":"","en":"A commercial vehicle manufacturer notes the following facts at the reporting date. Classify each one.","es":""},"explanation":{"fr":"","en":"An adverse technological change and market capitalisation below net assets are external sources; an early disposal and maintenance cash needs above budget are internal sources (IAS 36, paras. 12 and 14). Sales above budget or a start-up on plan signal no loss.","es":""},"common_error":{"fr":"","en":"Seeing an indicator in sales above budget or a commissioning on plan: these are favourable signals, not impairment indicators.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXTERNAL","text":{"fr":"","en":"External indicator","es":""}},{"id":"INTERNAL","text":{"fr":"","en":"Internal indicator","es":""}},{"id":"NONE","text":{"fr":"","en":"Not an indicator of impairment","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A competitor markets a powertrain that makes the flagship model obsolete","es":""},"category":"EXTERNAL"},{"id":"I2","text":{"fr":"","en":"Market capitalisation falls below book net assets","es":""},"category":"EXTERNAL"},{"id":"I3","text":{"fr":"","en":"Management decides to sell a plant well before the end of its expected life","es":""},"category":"INTERNAL"},{"id":"I4","text":{"fr":"","en":"Maintenance costs of a press far exceed budget","es":""},"category":"INTERNAL"},{"id":"I5","text":{"fr":"","en":"Sales for the year exceed budget by 10%","es":""},"category":"NONE"},{"id":"I6","text":{"fr":"","en":"A new workshop is brought into use as planned","es":""},"category":"NONE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000027","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"HOLDING","tested_point":"DIVIDEND_INDICATOR","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"dividend-indicator"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"In a parent's separate financial statements, a dividend received from a subsidiary can never be an indicator of impairment of the investment.","es":""},"explanation":{"fr":"","en":"False. The dividend is an indicator when it exceeds the subsidiary's total comprehensive income for the period in which it is declared, or when the investment's carrying amount exceeds that of the subsidiary's net assets in the consolidated statements, including goodwill (IAS 36, para. 12).","es":""},"common_error":{"fr":"","en":"Ruling out the dividend as an indicator: it is one if it exceeds the subsidiary's total comprehensive income or if the investment exceeds consolidated net assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000028","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"TRANSPORT","tested_point":"SPOT_INDICATORS_IN_FACTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"example"},"references":["IAS 36 §12","IAS 36 §13"],"exercise":{"prompt":{"fr":"","en":"Case data: a shipping company operates ferries. Which of these facts are indicators of impairment for its fleet?","es":""},"explanation":{"fr":"","en":"An adverse legal or market change, occurred or expected (regulation, competing bridge), and an asset becoming idle are indicators (IAS 36, para. 12); the competing bridge would be an indicator anyway even if it were not mentioned word for word (IAS 36, para. 13).","es":""},"common_error":{"fr":"","en":"Dismissing the regulation because the ban only takes effect in four years.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Adopted regulation will ban the most polluting vessels in the fleet in four years","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"One ferry has been laid up at the quay since spring","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Passenger numbers exceed budget by 5%","es":""},"correct":false,"feedback":{"fr":"","en":"Performance above expectations does not signal a loss.","es":""}},{"id":"D","text":{"fr":"","en":"The opening of a competing bridge on the main route is announced","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The share price stays well above net assets per share","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse (market capitalisation below net assets) that would be an indicator.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000029","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BIOTECH","tested_point":"MARKET_CAP_BELOW_NET_ASSETS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §8","IAS 36 §9","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Case data: at the reporting date, a listed biotech has a market capitalisation of 320 million, against consolidated equity of 450 million. No other signal is identified. What is the conclusion?","es":""},"explanation":{"fr":"","en":"A carrying amount of net assets above market capitalisation is an external indicator (IAS 36, para. 12). It requires recoverable amount to be estimated (IAS 36, para. 9); a loss exists only if carrying amount exceeds it (IAS 36, para. 8).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is an indicator: the recoverable amount of the assets or CGUs concerned must be estimated","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is not an indicator, because share prices are volatile","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly lists this situation among the external indicators.","es":""}},{"id":"C","text":{"fr":"","en":"A loss of 130 million must be recognised","es":""},"correct":false,"feedback":{"fr":"","en":"The indicator triggers a test; any loss results from the comparison with recoverable amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000030","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"UTILITIES","tested_point":"THIN_MARGIN_NO_RELIEF","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §9","IAS 36 §15","IAS 36 §16"],"exercise":{"prompt":{"fr":"","en":"Case data: a district heating network has a remaining life of 12 years. The last calculation (N−1) showed recoverable amount only 3% above carrying amount, and the sensitivity analysis showed that one extra point on the discount rate would wipe out that margin. In N, long-term rates rise by 1.5 points. What does the entity do?","es":""},"explanation":{"fr":"","en":"The relief requires a recoverable amount significantly above carrying amount or low sensitivity to the indicator (IAS 36, paras. 15 and 16). Here the margin is thin and sensitive to the rate: the indicator requires recoverable amount to be estimated (IAS 36, para. 9).","es":""},"common_error":{"fr":"","en":"Invoking materiality whenever an earlier calculation was favourable, without looking at the size of the margin or the sensitivity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It skips the calculation, since there was a margin in N−1","es":""},"correct":false,"feedback":{"fr":"","en":"The margin was not significant and the indicator probably wipes it out.","es":""}},{"id":"B","text":{"fr":"","en":"It formally estimates recoverable amount at the year-end N","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It waits for the asset's mandatory annual test","es":""},"correct":false,"feedback":{"fr":"","en":"Property, plant and equipment has no mandatory annual test: only the indicator triggers the test.","es":""}},{"id":"D","text":{"fr":"","en":"It recognises a loss equal to 3% of carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"A loss is measured by comparison with recoverable amount, never on a flat-rate basis.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000031","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"APPLICATION","format":"MINI_CASE","context":"HOLDING","tested_point":"DIVIDEND_INDICATOR_TESTS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"dividend-indicator"},"references":["IAS 36 §9","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Analyse Selva's investment in its separate financial statements.","es":""},"explanation":{"fr":"","en":"The 'dividend' indicator is met as soon as either situation exists (IAS 36, para. 12): here the dividend exceeds Brio's comprehensive income. Selva therefore estimates the recoverable amount of its investment (IAS 36, para. 9).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: Selva holds 100% of its subsidiary Brio, carried at a cost of 8,000,000 in its separate financial statements. In N, Brio declares a dividend of 1,500,000 while its total comprehensive income for N is 600,000. In the consolidated statements, Brio's net assets, including goodwill, amount to 8,400,000.","es":""},"parts":[{"prompt":{"fr":"","en":"The comparison between the investment's carrying amount and Brio's consolidated net assets reveals an indicator.","es":""},"explanation":{"fr":"","en":"False. 8,000,000 does not exceed 8,400,000: this first criterion is not met (IAS 36, para. 12).","es":""},"common_error":{"fr":"","en":"Seeing an indicator when the investment's carrying amount (8,000,000) does not exceed consolidated net assets (8,400,000).","es":""},"format":"TRUE_FALSE","answer":false,"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"The comparison between the dividend and Brio's comprehensive income reveals an indicator.","es":""},"explanation":{"fr":"","en":"True. 1,500,000 > 600,000: the dividend exceeds total comprehensive income for the period in which it is declared (IAS 36, para. 12).","es":""},"common_error":{"fr":"","en":"Ignoring the dividend because the first test is not met: one test is enough; here the dividend exceeds total comprehensive income.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"What is the consequence for Selva?","es":""},"explanation":{"fr":"","en":"An indicator requires the recoverable amount of the investment to be estimated (IAS 36, para. 9); any loss will result from that calculation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Estimate the recoverable amount of the investment in Brio","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognise a loss of 900,000 (1,500,000 − 600,000)","es":""},"correct":false,"feedback":{"fr":"","en":"The gap signals a risk; it does not measure a loss.","es":""}},{"id":"C","text":{"fr":"","en":"None, as only one of the two criteria is met","es":""},"correct":false,"feedback":{"fr":"","en":"Either criterion alone is enough to be an indicator.","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000032","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"REVIEW_USEFUL_LIFE_NO_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"review-numeric"},"references":["IAS 36 §17","IAS 16 §51"],"exercise":{"prompt":{"fr":"","en":"Case data: an ore crusher has a carrying amount of 480,000 and an estimated residual value of 30,000 (unchanged). Its remaining life was 8 years; faster depletion of the deposit (indicator) brings it down to 3 years. The test concludes there is no loss. Straight-line depreciation. Calculate.","es":""},"explanation":{"fr":"","en":"Before: (480,000 − 30,000) / 8 = 56,250. After: (480,000 − 30,000) / 3 = 150,000. Even with no loss, the indicator requires the useful life to be reviewed (IAS 36, para. 17); this change in estimate is applied prospectively (IAS 16, para. 51).","es":""},"common_error":{"fr":"","en":"Keeping the 56,250 charge because the test revealed no loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Initial remaining life","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Revised remaining life","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual charge before the review","es":""},"answer":56250,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual charge after the review","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual charge before the review","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Initial remaining life","es":""},"value":8,"unit":"YEARS"}],"result":56250,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Annual charge after the review","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Revised remaining life","es":""},"value":3,"unit":"YEARS"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS36.17","REF.IAS16.51"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000033","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST","IAS36.INDICATORS.MATERIALITY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"INDICATOR_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"pitfalls"},"references":["IAS 36 §12","IAS 36 §13","IAS 36 §14","IAS 36 §15","IAS 36 §16","IAS 36 §17"],"exercise":{"prompt":{"fr":"","en":"Here is the indicator analysis drafted for a store chain. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Operating losses revealed by reporting are an indicator (IAS 36, para. 14) and the relief for the warehouse is appropriate (IAS 36, paras. 15 and 16). The errors: ignoring an expected change (IAS 36, para. 12), treating the list as exhaustive (IAS 36, para. 13) and forgetting the review of the depreciation plan (IAS 36, para. 17).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The announced closure of 12 stores in 18 months does not count, since it has not yet happened.","es":""},"erroneous":true,"correction":{"fr":"","en":"Expected adverse changes in how assets are used are also indicators (IAS 36, para. 12).","es":""}},{"id":"S2","text":{"fr":"","en":"The operating losses of the Lyon store, shown in monthly reporting, are an indicator.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Losing our exclusive supplier is not mentioned by IAS 36, so it is not an indicator.","es":""},"erroneous":true,"correction":{"fr":"","en":"The list is not exhaustive: any other indicator identified requires recoverable amount to be estimated (IAS 36, para. 13).","es":""}},{"id":"S4","text":{"fr":"","en":"The test of the stores concerned concludes there is no loss: no further analysis is needed.","es":""},"erroneous":true,"correction":{"fr":"","en":"Even with no loss, consider whether useful life, depreciation method or residual value must be reviewed (IAS 36, para. 17).","es":""}},{"id":"S5","text":{"fr":"","en":"For the central warehouse, the last calculation showed a 40% margin and no event has reduced it: the rise in short-term rates does not require a new estimate; this reasoning is documented.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000034","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST","IAS36.INDICATORS.MATERIALITY","IAS36.INDICATORS.ASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LEISURE","tested_point":"INDICATOR_JUDGMENT_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"judgment"},"references":["IAS 36 §9","IAS 36 §12","IAS 36 §14","IAS 36 §15","IAS 36 §17"],"exercise":{"prompt":{"fr":"","en":"Analyse the situation of the Nantes club and answer.","es":""},"explanation":{"fr":"","en":"Three indicators (internal reporting, maintenance, competition) require recoverable amount to be estimated; the thin N−1 margin rules out the materiality relief; and, even with no loss, the depreciation plan may need to be reviewed (IAS 36, paras. 9, 12, 14, 15 and 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: the Vitalia group operates gyms; each club is treated as a CGU (teaching assumption). At the Nantes club, actual cash flows are 35% below budget for the second year running, and equipment maintenance spending is well above forecasts. A low-cost competitor has just opened 500 metres away. The group's share price has risen by 12% during the year. The last calculation of the club's recoverable amount (N−1) showed a 5% margin.","es":""},"parts":[{"prompt":{"fr":"","en":"Which facts are indicators for the Nantes club?","es":""},"explanation":{"fr":"","en":"Actual cash flows below budget and maintenance cash needs above forecast reveal deteriorating performance (IAS 36, para. 14); a competitor's arrival is an adverse market change (IAS 36, para. 12).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Actual cash flows 35% below budget","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Maintenance spending well above forecasts","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Opening of a nearby low-cost competitor","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"12% rise in the group's share price","es":""},"correct":false,"feedback":{"fr":"","en":"Good news at group level does not cancel out the signals specific to the club.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Can Vitalia invoke materiality to avoid estimating the club's recoverable amount?","es":""},"explanation":{"fr":"","en":"The relief is only available if the earlier recoverable amount was significantly above carrying amount and no event has eliminated that margin (IAS 36, para. 15). Here, recoverable amount must be estimated (IAS 36, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because the N−1 calculation was favourable","es":""},"correct":false,"feedback":{"fr":"","en":"A 5% margin is thin and this year's events have probably wiped it out.","es":""}},{"id":"B","text":{"fr":"","en":"No: the earlier margin is thin and events have probably eliminated it","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, because the group's share price is rising","es":""},"correct":false,"feedback":{"fr":"","en":"The group share price says nothing about the club's own margin.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"If the calculation shows no loss, the indicator analysis has no effect on the depreciation of the club's equipment.","es":""},"explanation":{"fr":"","en":"False. Even with no loss, the indicator may require useful life, depreciation method or residual value to be reviewed (IAS 36, para. 17).","es":""},"common_error":{"fr":"","en":"Leaving depreciation unchanged because there is no loss: the indicator may require the depreciation plan to be reviewed.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000037","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"RECOVERABLE_AMOUNT_AND_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"numeric-example"},"references":["IAS 36 §18","IAS 36 §28","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A wheel manufacturer tests a painting line that generates largely independent inflows (case data) at 31 December N. Calculate the amounts requested in turn.","es":""},"explanation":{"fr":"","en":"Costs of disposal = 9,000 + 13,000 = 22,000; redundancy payments are excluded (IAS 36, para. 28). Net fair value = 790,000 − 22,000 = 768,000. Recoverable amount = max (768,000; 815,000) = 815,000 (IAS 36, para. 18). Loss = 860,000 − 815,000 = 45,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Using net fair value (768,000) instead of the higher of the two amounts, which gives a loss of 92,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"860000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (buyer's offer)","es":""},"value":"790000","unit":"EUR"},{"label":{"fr":"","en":"Legal costs of the sale","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Dismantling and removal of the line","es":""},"value":"13000","unit":"EUR"},{"label":{"fr":"","en":"Redundancy payments after the sale","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"815000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":768000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Recoverable amount","es":""},"answer":815000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (buyer's offer)","es":""},"value":790000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Legal costs of the sale","es":""},"value":9000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Dismantling and removal of the line","es":""},"value":13000,"unit":"EUR"}],"result":768000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":860000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":815000,"unit":"EUR"}],"result":45000,"unit":"EUR"}],"references":["REF.IAS36.18","REF.IAS36.28","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000038","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"ENERGY","tested_point":"COSTS_OF_DISPOSAL_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"fvlcd-rule"},"references":["IAS 36 §6","IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Case data: an energy producer is considering selling a gas turbine. Fair value: 1,200,000. Estimated costs: legal costs 18,000; transfer duties 24,000; overhaul to bring the turbine into condition for sale 8,000; reorganisation of the site after the disposal 35,000; interest on a bridging loan 6,000; dismantling already provided for 50,000. Complete.","es":""},"explanation":{"fr":"","en":"Only incremental costs of the disposal not already recognised as liabilities are deducted: 18,000 + 24,000 + 8,000 = 50,000 (IAS 36, para. 28). Post-sale reorganisation is excluded (para. 28), the provided dismantling is already a liability (para. 28) and interest is a finance cost, outside costs of disposal (IAS 36, para. 6). Net fair value = 1,200,000 − 50,000 = 1,150,000.","es":""},"common_error":{"fr":"","en":"Also deducting the provided dismantling (50,000): the cost would be counted twice, once as a liability and once in net fair value.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Deductible costs of disposal: {{costs}}. Fair value less costs of disposal: {{fvlcd}}.","es":""},"blanks":[{"id":"costs","mode":"NUMBER","answer":50000,"tolerance":0},{"id":"fvlcd","mode":"NUMBER","answer":1150000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000039","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"ONE_MEASURE_SUFFICES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18","IAS 36 §19"],"exercise":{"prompt":{"fr":"","en":"A retailer owns a freehold store with a carrying amount of 3,100,000. There is an indication of impairment. An independent agency values it at 3,400,000 after deducting costs of disposal. Value in use has not been calculated. What do you conclude?","es":""},"explanation":{"fr":"","en":"Recoverable amount is the higher of the two amounts (IAS 36, para. 18). Since fair value less costs of disposal (3,400,000) already exceeds the carrying amount (3,100,000), the asset is not impaired and there is no need to estimate value in use (IAS 36, para. 19).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The test is incomplete: value in use must be calculated before concluding.","es":""},"correct":false,"feedback":{"fr":"","en":"Unnecessary: recoverable amount is at least 3,400,000, which already exceeds the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"The store is not impaired; no loss is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The store must be remeasured upwards to 3,400,000.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 caps the carrying amount; with no prior loss to reverse, it never leads to increasing an asset carried at cost above its carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"A loss of 300,000 must be reversed through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no earlier loss here; the positive gap is not income.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000040","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"COSTS_OF_DISPOSAL_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"fvlcd-rule"},"references":["IAS 36 §6","IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"A telecom operator is preparing to sell a regional tower network. Classify each item for the calculation of fair value less costs of disposal.","es":""},"explanation":{"fr":"","en":"Costs of disposal are the incremental costs directly attributable to the disposal, excluding finance costs and income tax (IAS 36, para. 6): duties, fees for the sale and direct costs to bring the asset into condition for sale are deducted. Termination benefits following the disposal and costs already recognised as liabilities are not deducted (IAS 36, para. 28).","es":""},"common_error":{"fr":"","en":"Treating every cash outflow linked to the transaction as a cost of disposal, including tax and staff departures.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DEDUCTED","text":{"fr":"","en":"Deducted from fair value","es":""}},{"id":"NOT_DEDUCTED","text":{"fr":"","en":"Not deducted","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Registration duties on the deed of sale","es":""},"category":"DEDUCTED"},{"id":"I2","text":{"fr":"","en":"Fees of the investment bank handling the sale","es":""},"category":"DEDUCTED"},{"id":"I3","text":{"fr":"","en":"Technical audit of the towers required to be able to sell them","es":""},"category":"DEDUCTED"},{"id":"I4","text":{"fr":"","en":"Voluntary redundancy plan for technicians after the disposal","es":""},"category":"NOT_DEDUCTED"},{"id":"I5","text":{"fr":"","en":"Income tax payable on the gain on disposal","es":""},"category":"NOT_DEDUCTED"},{"id":"I6","text":{"fr":"","en":"Tower dismantling already recognised as a provision","es":""},"category":"NOT_DEDUCTED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000041","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"INDIVIDUAL_ASSET_OR_CGU","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22","IAS 36 §66","IAS 36 §67"],"exercise":{"prompt":{"fr":"","en":"There is an indication of impairment for each of the following assets. Indicate at which level the conclusion is drawn.","es":""},"explanation":{"fr":"","en":"Recoverable amount is estimated for the individual asset; if the asset does not generate largely independent inflows, the test moves to its CGU, unless its net fair value already exceeds its carrying amount (IAS 36, paras. 22 and 66). The oven and the railway have neither inflows of their own nor a value in use close to their resale value: only their CGU can be tested (IAS 36, para. 67).","es":""},"common_error":{"fr":"","en":"Testing the truck at CGU level when its net fair value is already enough to rule out any loss.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ASSET","text":{"fr":"","en":"Test of the individual asset (largely independent inflows)","es":""}},{"id":"CGU","text":{"fr":"","en":"Test of the CGU to which the asset belongs","es":""}},{"id":"NO_LOSS_ASSET_LEVEL","text":{"fr":"","en":"Conclusion possible at asset level: no loss, without moving to the CGU","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Office building leased to third parties, rents collected independently","es":""},"category":"ASSET"},{"id":"I2","text":{"fr":"","en":"Oven of an industrial bakery, with no sales of its own, whose resale value bears no relation to the cash flows its use helps to generate","es":""},"category":"CGU"},{"id":"I3","text":{"fr":"","en":"Workshop truck with no inflows of its own, whose net fair value already exceeds its carrying amount","es":""},"category":"NO_LOSS_ASSET_LEVEL"},{"id":"I4","text":{"fr":"","en":"Private railway linking a mine to the port, saleable only as scrap","es":""},"category":"CGU"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000042","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"RECOVERABLE_AMOUNT_WORKPAPER_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"pitfalls"},"references":["IAS 36 §18","IAS 36 §19","IAS 36 §20","IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"You are reviewing a pharmaceutical laboratory's workpaper on a sterile filling line (carrying amount 4,000,000). Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Net fair value = 3,700,000 − 30,000 − 45,000 = 3,625,000 (IAS 36, para. 28). Recoverable amount = max (3,625,000; 3,820,000) = 3,820,000 (IAS 36, para. 18), hence a loss of 180,000. As neither measure exceeds the carrying amount of 4,000,000, both did have to be estimated (IAS 36, para. 19). The errors: concluding too quickly that there is no fair value (para. 20), using the minimum (para. 18) and deducting termination payments (para. 28).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'No quoted price exists for an identical line: fair value less costs of disposal therefore cannot be estimated.'","es":""},"erroneous":true,"correction":{"fr":"","en":"The absence of a quoted price does not, on its own, prevent this measure from being estimated; it often can be by other means (IAS 36, para. 20).","es":""}},{"id":"S2","text":{"fr":"","en":"'Estimated fair value 3,700,000, less legal costs (30,000) and the decontamination needed for the sale (45,000): 3,625,000.'","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"'Value in use 3,820,000; to be prudent, we use the lower of the two measures, i.e. 3,625,000.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Recoverable amount is the higher of the two: 3,820,000 (IAS 36, para. 18).","es":""}},{"id":"S4","text":{"fr":"","en":"'We also deduct the 90,000 of termination payments for the line's staff, who would be dismissed after the sale.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Termination benefits following the disposal are not costs of disposal (IAS 36, para. 28).","es":""}},{"id":"S5","text":{"fr":"","en":"'Impairment loss recognised: 4,000,000 − 3,820,000 = 180,000.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000043","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MEDIA","tested_point":"ASSET_HELD_FOR_DISPOSAL_FVLCD","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"judgment"},"references":["IAS 36 §20","IAS 36 §21","IAS 36 §28","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Read the case and answer the questions.","es":""},"explanation":{"fr":"","en":"Asset held for disposal: net fair value used (IAS 36, para. 21), costs of disposal sorted (IAS 36, para. 28), loss of 400,000 (IAS 36, para. 59).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"In November N a press group decided to sell its Lyon printing plant, which will stop running at the end of January N+1; the sale is expected in March N+1. At 31 December N the carrying amount of the plant (tested as a whole, case data) is 5,200,000. Operating cash flows until the shutdown are small.","es":""},"exhibits":[{"title":{"fr":"","en":"Offer received and estimated costs","es":""},"body":{"fr":"","en":"Firm offer from a competing printer: 4,900,000. Deed and advisory fees: 70,000. Dismantling of a press the buyer does not take over: 30,000. Redundancy plan for employees after the sale: 400,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Which measure can serve as recoverable amount?","es":""},"explanation":{"fr":"","en":"There is no reason to believe that value in use materially exceeds the net fair value of an asset held for disposal, whose value in use consists mainly of net disposal proceeds: that net fair value may be used (IAS 36, para. 21). Judgment to document: cash flows until shutdown are small (case data).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value less costs of disposal, without calculating value in use","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Necessarily a five-year value in use","es":""},"correct":false,"feedback":{"fr":"","en":"The plant is to be sold: its value in use consists mainly of the net disposal proceeds.","es":""}},{"id":"C","text":{"fr":"","en":"The carrying amount, as no transaction has been completed","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is what is tested, never a measure of recoverable amount.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate fair value less costs of disposal and the impairment loss.","es":""},"explanation":{"fr":"","en":"4,900,000 − 70,000 − 30,000 = 4,800,000; the redundancy plan following the disposal is excluded (IAS 36, para. 28). Loss = 5,200,000 − 4,800,000 = 400,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Deducting the redundancy plan following the sale: it is not a cost of disposal.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"5200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":4800000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":5200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":4800000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"references":["REF.IAS36.28","REF.IAS36.59"]}},{"prompt":{"fr":"","en":"If there were no reliable basis for estimating the price of an orderly transaction, the entity could use value in use as recoverable amount.","es":""},"explanation":{"fr":"","en":"True. That is the solution provided when fair value less costs of disposal cannot be measured reliably (IAS 36, para. 20).","es":""},"common_error":{"fr":"","en":"Blocking the test for lack of a reliable fair value: value in use can then be used as recoverable amount.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000044","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"IMPAIRMENT_LOSS_ENTRY_AT_COST","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"entry"},"references":["IAS 36 §18","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"A software publisher tests an acquired technical platform, carried at cost, that generates largely independent inflows (case data). Carrying amount: 1,350,000; fair value less costs of disposal: 1,180,000; value in use: 1,225,000. Record the loss entry.","es":""},"explanation":{"fr":"","en":"Recoverable amount = max (1,180,000; 1,225,000) = 1,225,000 (IAS 36, para. 18). Loss = 1,350,000 − 1,225,000 = 125,000 (IAS 36, para. 59), recognised immediately in profit or loss for an asset carried at cost (IAS 36, para. 60), as a reduction of the carrying amount and not through a provision.","es":""},"common_error":{"fr":"","en":"Recording 170,000 by using net fair value, or charging the loss to a revaluation surplus that does not exist for an asset carried at cost.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment — platform","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (equity)","es":""}},{"id":"PROVISION","text":{"fr":"","en":"Provision","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":125000},{"id":"L2","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":125000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000045","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"MEDIA","tested_point":"REUSE_PRIOR_CALCULATION_INDEFINITE_INTANGIBLE","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000005","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §24"],"exercise":{"prompt":{"fr":"","en":"Case data: a magazine publisher tests an acquired press title with an indefinite useful life each year, within a CGU. Detailed calculation for N-1: recoverable amount 12,000,000 for a carrying amount of 11,600,000; management does not regard this margin as substantial. In N, the CGU absorbed a second acquired title, representing one third of its assets; the advertising market remained stable. The publisher wants to reuse the N-1 calculation. Which facts prevent this?","es":""},"explanation":{"fr":"","en":"Reusing the last detailed calculation requires three cumulative conditions: no significant change in the composition of the CGU, a substantial margin in the last calculation and a remote likelihood that the current recoverable amount is below the carrying amount (IAS 36, para. 24). Here, two conditions are not met; a single one would be enough to require a new calculation. Assessing whether the margin is substantial is a matter of professional judgement (case data).","es":""},"common_error":{"fr":"","en":"Checking only one condition, such as market stability, whereas all three are cumulative.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The margin in the last calculation (400,000, about 3%) is not substantial","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The composition of the CGU has changed significantly with the absorption of the second title","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The advertising market remained stable","es":""},"correct":false,"feedback":{"fr":"","en":"A stable market is no obstacle to reuse: if anything, it supports a remote likelihood of a loss.","es":""}},{"id":"D","text":{"fr":"","en":"The detailed calculation dates from the previous year","es":""},"correct":false,"feedback":{"fr":"","en":"That is precisely the situation covered: reuse concerns a calculation from a preceding period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000046","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"VALUE_IN_USE_SIMPLE_DISCOUNTING","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"numeric-example"},"references":["IAS 36 §18","IAS 36 §31","IAS 36 §39","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A haulier tests a handling gantry leased to third parties (largely independent inflows, case data) with a remaining useful life of 3 years. Year-end net cash flows: 200,000 in N+1, 180,000 in N+2, 150,000 in N+3, plus a net disposal cash flow of 30,000 at the end of N+3. Pre-tax rate: 8% (factors 0.9259; 0.8573; 0.7938). Carrying amount: 520,000; fair value less costs of disposal: 450,000.","es":""},"explanation":{"fr":"","en":"200,000 × 0.9259 = 185,180; 180,000 × 0.8573 = 154,314; (150,000 + 30,000) × 0.7938 = 142,884, the net cash flow on disposal at the end of the useful life being part of the cash flows (IAS 36, para. 39). Value in use = 482,378 (IAS 36, para. 31). Recoverable amount = max (450,000; 482,378) = 482,378 (IAS 36, para. 18). Loss = 520,000 − 482,378 = 37,622 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Forgetting the end-of-life disposal cash flow (value in use 458,564) or adding up the cash flows without discounting them (560,000, hence 'no loss').","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pre-tax discount rate","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Carrying amount","es":""},"value":"520000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of the N+1 cash flow","es":""},"answer":185180,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the N+2 cash flow","es":""},"answer":154314,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Present value of the N+3 cash flows (operations + disposal)","es":""},"answer":142884,"tolerance":1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Value in use","es":""},"answer":482378,"tolerance":2,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Impairment loss","es":""},"answer":37622,"tolerance":2,"unit":"EUR"}],"formula":{"lines":[{"step":"S5","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":482378,"unit":"EUR"}],"result":37622,"unit":"EUR"}],"references":["REF.IAS36.18","REF.IAS36.31","REF.IAS36.39","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000047","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"GENERIC","tested_point":"DISCOUNT_FACTOR_COMPUTATION","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"understand"},"references":["IAS 36 §30","IAS 36 §31"],"exercise":{"prompt":{"fr":"","en":"A net cash flow of 250,000 is expected at the end of year 4. Discount rate: 9%. Round the factor to four decimals and the present value to the euro (course convention).","es":""},"explanation":{"fr":"","en":"(1.09)^4 = 1.4116; 1 / 1.4116 = 0.7084. Present value = 250,000 × 0.7084 = 177,100. Discounting reflects the time value of money, one of the elements of value in use (IAS 36, paras. 30 and 31).","es":""},"common_error":{"fr":"","en":"Dividing by 1 + 4 × 9% (simple interest), i.e. 1.36, which gives 183,824.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Discount factor = 1 / (1.09)^4 = {{factor}}; present value = {{pv}}","es":""},"blanks":[{"id":"factor","mode":"NUMBER","answer":0.7084,"tolerance":0.0001},{"id":"pv","mode":"NUMBER","answer":177100,"tolerance":25}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000048","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"FIVE_YEAR_HORIZON","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"horizon-growth"},"references":["IAS 36 §33","IAS 36 §35"],"exercise":{"prompt":{"fr":"","en":"A wind farm operator wants to use detailed 12-year projections for the value in use of a farm. In which case is this allowed?","es":""},"explanation":{"fr":"","en":"Projections based on budgets cover five years at most, unless a longer period is justified (IAS 36, para. 33); this requires management to demonstrate, based on past experience, its ability to forecast accurately over that period (IAS 36, para. 35). Long-term power purchase agreements could support such a demonstration (professional judgment).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Never: the horizon is limited to five years without exception","es":""},"correct":false,"feedback":{"fr":"","en":"Five years is the limit in principle, but a longer period can be justified.","es":""}},{"id":"B","text":{"fr":"","en":"If management can demonstrate, based on past experience, its ability to forecast reliably over that period","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As soon as the board has approved the 12-year plan","es":""},"correct":false,"feedback":{"fr":"","en":"Approval is necessary but not sufficient: the reliability of forecasts over such a period must be demonstrated.","es":""}},{"id":"D","text":{"fr":"","en":"If the resulting value in use exceeds the carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The outcome of the test cannot justify its own assumptions.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000049","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS","IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"PROJECTION_MODEL_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"pitfalls"},"references":["IAS 36 §32","IAS 36 §33","IAS 36 §34","IAS 36 §35","IAS 36 §36"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the assumptions of the value in use model for a 'South-West stores' CGU. External sources estimate the retail market's long-term growth at 2%. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The approved budget and five-year horizon comply (IAS 36, paras. 33 and 35). Erroneous: terminal growth above the long-term average without justification (paras. 33 and 36), no analysis of past variances (para. 34) and the double treatment of a single risk (para. 32).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'The N+1 to N+5 cash flows come from the budget approved by the management board in November N.'","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"'Beyond N+5, cash flows are extrapolated at 5% a year, in line with the group's strategic ambition.'","es":""},"erroneous":true,"correction":{"fr":"","en":"The extrapolation rate must not exceed long-term average growth (2%) unless objectively justified; an ambition is not a justification (IAS 36, paras. 33 and 36).","es":""}},{"id":"S3","text":{"fr":"","en":"'Actuals fell 20% short of the budgets of the last three years; these variances are irrelevant to the test and are not analysed.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Management must analyse the causes of past variances to assess the reasonableness of its assumptions (IAS 36, para. 34).","es":""}},{"id":"S4","text":{"fr":"","en":"'The risk of lower footfall is reflected by reducing the cash flows and, in addition, by adding 2 points to the discount rate.'","es":""},"erroneous":true,"correction":{"fr":"","en":"A given risk is reflected in the cash flows or in the rate, not in both (IAS 36, para. 32).","es":""}},{"id":"S5","text":{"fr":"","en":"'The detailed horizon is five years; no longer detailed projection is used.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000050","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS","IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"TERMINAL_VALUE_EXTRAPOLATION","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"numeric-example"},"references":["IAS 36 §33","IAS 36 §36"],"exercise":{"prompt":{"fr":"","en":"A fibre operator tests a regional CGU. Teaching assumption: operation with no time limit, cash flows beyond N+5 being summarised by a growing perpetuity (a common technique not imposed by IAS 36). Calculate the terminal value and its present value.","es":""},"explanation":{"fr":"","en":"N+6 cash flow = 300,000 × 1.01 = 303,000. Terminal value = 303,000 / (0.11 − 0.01) = 3,030,000, a value at the end of N+5, hence discounted with the factor for year 5: 3,030,000 × 0.5935 = 1,798,305. The 1% rate is steady and does not exceed the market's long-term growth (IAS 36, paras. 33 and 36).","es":""},"common_error":{"fr":"","en":"Discounting the terminal value with the factor for year 6 (0.5346), although it is expressed at the end of year 5.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"N+5 net cash flow (approved budget)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Growth beyond N+5 (steady, below the market's long-term average)","es":""},"value":"1","unit":"PERCENT"},{"label":{"fr":"","en":"Pre-tax discount rate","es":""},"value":"11","unit":"PERCENT"},{"label":{"fr":"","en":"Discount factor for year 5 at 11%","es":""},"value":"0.5935","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"N+6 cash flow","es":""},"answer":303000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Terminal value at the end of N+5","es":""},"answer":3030000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Present value of the terminal value","es":""},"answer":1798305,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"N+6 cash flow","es":""},"expression":"a * (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"N+5 net cash flow (approved budget)","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Growth beyond N+5 (steady, below the market's long-term average)","es":""},"value":1,"unit":"PERCENT"}],"result":303000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Terminal value at the end of N+5","es":""},"expression":"a / (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"N+6 cash flow","es":""},"value":303000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Pre-tax discount rate","es":""},"value":11,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Growth beyond N+5 (steady, below the market's long-term average)","es":""},"value":1,"unit":"PERCENT"}],"result":3030000,"unit":"EUR"}],"rationale":{"fr":"","en":"The 1% rate is steady and does not exceed the market's long-term growth (IAS 36, paras. 33 and 36).","es":""},"references":["REF.IAS36.33","REF.IAS36.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000051","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"VALUE_IN_USE_ELEMENTS","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §30","IAS 36 §31"],"exercise":{"prompt":{"fr":"","en":"Which elements must the value in use of an asset reflect?","es":""},"explanation":{"fr":"","en":"Value in use reflects the estimate of future cash flows, possible variations in their amount or timing, time value (current market risk-free rate), the price of uncertainty and other factors such as illiquidity (IAS 36, para. 30). The calculation consists of estimating the cash flows and then discounting them (IAS 36, para. 31).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An estimate of the future cash flows the entity expects from the asset","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expectations about possible variations in the amount or timing of those cash flows","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The time value of money, represented by the current market risk-free rate","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The price for bearing the uncertainty inherent in the asset","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The historical acquisition cost of the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use looks to the future; historical cost is part of the carrying amount, not of value in use.","es":""}},{"id":"F","text":{"fr":"","en":"The interest rate on the loan that financed the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Time value is represented by the market risk-free rate, not by the cost of the asset's own financing.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000052","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"REASONABLENESS_OF_ASSUMPTIONS","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"judgment"},"references":["IAS 36 §33","IAS 36 §34","IAS 36 §36","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Read the case and answer the questions.","es":""},"explanation":{"fr":"","en":"Recurring past variances and terminal growth above the long-term average make the assumptions hard to support (IAS 36, paras. 33, 34, 36 and 37).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A hotel group tests the 'mountain hotels' CGU. The approved budget forecasts a net cash flow of 800,000 for N+1 and growth of 9% a year until N+5, then 4% a year thereafter. Over the last three years, actual cash flows were on average 10% below budget, with no exceptional event identified. External studies put long-term growth in mountain tourism at around 1.5%.","es":""},"parts":[{"prompt":{"fr":"","en":"What do the past variances of −10% suggest to you?","es":""},"explanation":{"fr":"","en":"Management assesses the reasonableness of its assumptions by analysing the causes of past variances and ensures they are consistent with past outcomes (IAS 36, para. 34); the budget must represent its best estimate (IAS 36, para. 38).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: only the approved budget for the year matters","es":""},"correct":false,"feedback":{"fr":"","en":"Approval does not remove the need to judge the reasonableness of the assumptions against the past.","es":""}},{"id":"B","text":{"fr":"","en":"Unexplained recurring optimism, which requires the budget assumptions to be challenged","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A reason to increase the discount rate by 10 points","es":""},"correct":false,"feedback":{"fr":"","en":"A forecasting bias is corrected first in the cash flow assumptions; an arbitrary increase in the rate is not the answer.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The 4% rate used beyond N+5 is acceptable because it is lower than the budgeted growth of 9%.","es":""},"explanation":{"fr":"","en":"False. The benchmark is not the budget's growth but the market's long-term average (around 1.5%); a higher rate requires justification (IAS 36, paras. 33 and 36), which is hard to provide over time in the face of competition (IAS 36, para. 37).","es":""},"common_error":{"fr":"","en":"Comparing the extrapolation rate with budgeted growth: the benchmark is the long-term market average; a higher rate must be justified.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Teaching assumption: after analysis, management brings the N+1 cash flow down to the historically observed level (−10%). Calculate the revised cash flow and its present value at 10% (factor 0.9091).","es":""},"explanation":{"fr":"","en":"800,000 × 0.90 = 720,000; 720,000 × 0.9091 = 654,552. The extent of the revision is a matter of judgment; it must be consistent with the analysis of past variances (IAS 36, para. 34).","es":""},"common_error":{"fr":"","en":"Discounting the budget flow without revising it: it is first brought back to the historical level, then multiplied by the discount factor.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Budget N+1 cash flow","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Revised N+1 cash flow","es":""},"answer":720000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the revised cash flow","es":""},"answer":654552,"tolerance":1,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Present value of the revised cash flow","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revised N+1 cash flow","es":""},"value":720000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"factor 0.9091","es":""},"value":0.9091}],"result":654552,"unit":"EUR"}],"references":["REF.IAS36.34"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000053","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"AGRIFOOD","tested_point":"VALUE_IN_USE_VS_FAIR_VALUE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"why"},"references":["IAS 36 §53A"],"exercise":{"prompt":{"fr":"","en":"A dairy cooperative is measuring a cheese plant. Classify each factor according to the measure in which it is taken into account.","es":""},"explanation":{"fr":"","en":"Fair value reflects market participants' assumptions; value in use includes entity-specific factors: synergies with other assets, legal rights or restrictions specific to the owner, tax benefits specific to it (IAS 36, para. 53A).","es":""},"common_error":{"fr":"","en":"Including the cooperative's own synergies or tax advantage in fair value: they are entity-specific factors, used only in value in use.","es":""},"format":"CLASSIFICATION","categories":[{"id":"VALUE_IN_USE_ONLY","text":{"fr":"","en":"Value in use only (entity-specific factor)","es":""}},{"id":"FAIR_VALUE","text":{"fr":"","en":"Fair value (market participant assumption)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Synergies with the cooperative's neighbouring dairy, which supplies milk at low cost","es":""},"category":"VALUE_IN_USE_ONLY"},{"id":"I2","text":{"fr":"","en":"Tax exemption specific to cooperative status","es":""},"category":"VALUE_IN_USE_ONLY"},{"id":"I3","text":{"fr":"","en":"Health approval attached to the operator and not transferable","es":""},"category":"VALUE_IN_USE_ONLY"},{"id":"I4","text":{"fr":"","en":"Price any industrial cheesemaker would pay to buy the site","es":""},"category":"FAIR_VALUE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000054","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS","IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"VALUE_IN_USE_PROCESS","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"how"},"references":["IAS 36 §18","IAS 36 §31","IAS 36 §33","IAS 36 §34"],"exercise":{"prompt":{"fr":"","en":"Put the steps for calculating a value in use in order.","es":""},"explanation":{"fr":"","en":"First the cash flows are built from the approved budget, checked against past variances and adjusted for uncommitted projects (IAS 36, paras. 33 and 34), extended beyond the horizon (para. 33), discounted (IAS 36, para. 31), and then recoverable amount is compared with the carrying amount (IAS 36, para. 18).","es":""},"common_error":{"fr":"","en":"Discounting the raw budget without removing uncommitted projects or checking it against past variances.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Start from the latest approved budget and compare it with past variances","es":""}},{"id":"S2","text":{"fr":"","en":"Remove the cash flows of uncommitted projects","es":""}},{"id":"S3","text":{"fr":"","en":"Extrapolate beyond the horizon with a steady or declining rate","es":""}},{"id":"S4","text":{"fr":"","en":"Discount each cash flow and add up the present values","es":""}},{"id":"S5","text":{"fr":"","en":"Compare the higher of value in use and net fair value with the carrying amount","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000055","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"CASH_FLOWS_INCLUDED_EXCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §43","IAS 36 §44","IAS 36 §45","IAS 36 §48","IAS 36 §49","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"A mobile operator tests the 'North regional network' CGU. Classify each line of its budget for value in use.","es":""},"explanation":{"fr":"","en":"Included: inflows from use (IAS 36, para. 39), maintenance and component replacement (paras. 41 and 49), reasonably allocable overheads (para. 41). Excluded: financing and tax (para. 50), uncommitted enhancement and its revenue (paras. 44 and 48), savings from an uncommitted restructuring (para. 45), liabilities already recognised (para. 43).","es":""},"common_error":{"fr":"","en":"Excluding the battery replacement by confusing it with an enhancement.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDE","text":{"fr":"","en":"Included in the cash flows","es":""}},{"id":"EXCLUDE","text":{"fr":"","en":"Excluded from the cash flows","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Subscriptions from customers in the region","es":""},"category":"INCLUDE"},{"id":"I2","text":{"fr":"","en":"Antenna maintenance and replacement of worn batteries","es":""},"category":"INCLUDE"},{"id":"I3","text":{"fr":"","en":"Share of head office costs allocated on a stable and reasonable basis","es":""},"category":"INCLUDE"},{"id":"I4","text":{"fr":"","en":"Interest on the network acquisition debt","es":""},"category":"EXCLUDE"},{"id":"I5","text":{"fr":"","en":"Income tax of the subsidiary","es":""},"category":"EXCLUDE"},{"id":"I6","text":{"fr":"","en":"Roll-out of a new generation of antennas, not committed, and related revenue","es":""},"category":"EXCLUDE"},{"id":"I7","text":{"fr":"","en":"Savings from a merger of technical centres under study","es":""},"category":"EXCLUDE"},{"id":"I8","text":{"fr":"","en":"Payment of supplier invoices recognised at 31 December","es":""},"category":"EXCLUDE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000056","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"BUDGET_RESTATEMENT","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"numeric-example"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §44","IAS 36 §48","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"A DIY chain tests a store (CGU). Here is the approved budget for N+1. Teaching assumption: year-end cash flows. Calculate the cash flow to use for value in use and its present value at 10% (factor 0.9091).","es":""},"explanation":{"fr":"","en":"Budget total = 2,000,000 − 1,450,000 − 60,000 − 90,000 − 40,000 − 75,000 − 200,000 + 120,000 = 205,000. Cash flow used = 2,000,000 − 1,450,000 − 60,000 − 90,000 = 400,000: maintenance and allocable costs are included (IAS 36, paras. 39 and 41); interest and tax excluded (para. 50); the uncommitted extension and related sales excluded (paras. 44 and 48). Present value = 400,000 × 0.9091 = 363,640.","es":""},"common_error":{"fr":"","en":"Removing the extension but keeping its additional sales (520,000), which inflates value in use.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Sales","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Goods sold and store staff","es":""},"value":"-1450000","unit":"EUR"},{"label":{"fr":"","en":"Day-to-day servicing","es":""},"value":"-60000","unit":"EUR"},{"label":{"fr":"","en":"Head office costs reasonably allocated","es":""},"value":"-90000","unit":"EUR"},{"label":{"fr":"","en":"Loan interest","es":""},"value":"-40000","unit":"EUR"},{"label":{"fr":"","en":"Income tax","es":""},"value":"-75000","unit":"EUR"},{"label":{"fr":"","en":"Store extension (not committed)","es":""},"value":"-200000","unit":"EUR"},{"label":{"fr":"","en":"Additional sales from the extension","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Budget total","es":""},"answer":205000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"N+1 cash flow to use","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Present value of the cash flow used","es":""},"answer":363640,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Present value of the cash flow used","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"N+1 cash flow to use","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"factor 0.9091","es":""},"value":0.9091}],"result":363640,"unit":"EUR"}],"rationale":{"fr":"","en":"Cash flow used = 2,000,000 − 1,450,000 − 60,000 − 90,000 = 400,000: maintenance and allocable costs are included (IAS 36, paras. 39 and 41)","es":""},"references":["REF.IAS36.39","REF.IAS36.41"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000057","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AUTOMOTIVE","tested_point":"COMMITTED_RESTRUCTURING","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §46","IAS 36 §47"],"exercise":{"prompt":{"fr":"","en":"A supplier is committed, as defined in IAS 37, to closing a workshop and has recognised the related provision. In the value in use of the plant, it must include both the expected savings and the restructuring cash outflows.","es":""},"explanation":{"fr":"","en":"False. Once the entity is committed (under IAS 37, IAS 36, para. 46), the expected savings and other benefits enter the cash flows on the basis of approved budgets, but the restructuring outflows belong to the provision already recognised (IAS 36, para. 47): including them in value in use would count them twice.","es":""},"common_error":{"fr":"","en":"Reasoning as for an uncommitted restructuring (exclude everything) or including everything.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000058","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"INFLATION_CONSISTENCY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §40","IAS 36 §51"],"exercise":{"prompt":{"fr":"","en":"A district heating network projects its cash flows in constant euros (excluding general inflation), but includes gas price increases above inflation. It discounts them at 8%, a nominal rate including 2% expected inflation. What do you conclude?","es":""},"explanation":{"fr":"","en":"Cash flows and rate must be consistent: nominal cash flows with a nominal rate, real cash flows with a real rate; real cash flows include specific price changes (IAS 36, para. 40). Discounting real cash flows at a nominal rate understates value in use, contrary to the requirement for consistent assumptions (IAS 36, para. 51).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The calculation is correct: the specific gas price increase makes the cash flows nominal","es":""},"correct":false,"feedback":{"fr":"","en":"A specific increase is also reflected in real cash flows; it does not make them nominal.","es":""}},{"id":"B","text":{"fr":"","en":"Inconsistency: real cash flows must be discounted at a real rate (or the cash flows must be expressed in nominal terms)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The specific gas price increase must be removed from the real cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"Real cash flows exclude general inflation but take account of specific price increases or decreases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000059","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"CALCULATION","format":"CALCULATION","context":"SHIPPING","tested_point":"FOREIGN_CURRENCY_VALUE_IN_USE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"A European company (functional currency: euro) tests a vessel chartered out in dollars, with largely independent inflows (case data). Remaining useful life: 2 years, year-end net cash flows of USD 500,000 a year. Pre-tax rate appropriate for the dollar: 6% (factors 0.9434 and 0.8900). Spot rate at the test date: USD 1 = EUR 0.92.","es":""},"explanation":{"fr":"","en":"The cash flows are discounted in their currency, at a rate appropriate for that currency: 500,000 × 0.9434 + 500,000 × 0.8900 = 471,700 + 445,000 = USD 916,700. The present value is then translated at the spot rate at the date of the calculation: 916,700 × 0.92 = EUR 843,364 (IAS 36, para. 54).","es":""},"common_error":{"fr":"","en":"Translating each cash flow at an estimated future rate and discounting it at a euro rate, instead of discounting in dollars and translating once at spot.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual net cash flow","es":""},"value":"500000 USD","unit":"TEXT"},{"label":{"fr":"","en":"Dollar rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value in dollars (USD)","es":""},"answer":916700,"tolerance":1},{"id":"S2","label":{"fr":"","en":"Value in use in euros","es":""},"answer":843364,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000060","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY","IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HOSPITALITY","tested_point":"VALUE_IN_USE_MODEL_REVIEW","difficulty":"EXPERT","estimated_time_s":210,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"pitfalls"},"references":["IAS 36 §41","IAS 36 §43","IAS 36 §50","IAS 36 §51","IAS 36 §52","IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the value in use model of a hotel in Switzerland owned by a group whose presentation currency is the euro. Revenue and costs are in Swiss francs (CHF). Spot the erroneous steps.","es":""},"explanation":{"fr":"","en":"Compliant: discounting in the currency (IAS 36, para. 54), reasonably allocated overheads (para. 41), final net disposal cash flow (para. 52). Erroneous: translation at a forecast average rate instead of spot (para. 54), interest included (paras. 50 and 51), existing receivables included (para. 43).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'Cash flows are estimated in CHF and then discounted at a pre-tax rate appropriate for the Swiss franc.'","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"'The present value in CHF is translated at the average exchange rate forecast for the next five years.'","es":""},"erroneous":true,"correction":{"fr":"","en":"The present value is translated at the spot rate at the date of the calculation (IAS 36, para. 54).","es":""}},{"id":"S3","text":{"fr":"","en":"'Cash flows are reduced by the interest on the hotel's mortgage loan.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Financing cash flows are excluded; time value is already reflected through discounting (IAS 36, paras. 50 and 51).","es":""}},{"id":"S4","text":{"fr":"","en":"'The costs of the group's central booking office are allocated to the hotel in proportion to room nights.'","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"'Collection of receivables from travel agencies in the opening statement of financial position is added to the first year's cash flows.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Existing receivables generate independent cash flows and are excluded to avoid double counting (IAS 36, para. 43).","es":""}},{"id":"S6","text":{"fr":"","en":"'The expected resale of the hotel at the end of the operating period, net of selling costs, is included in the last cash flow.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000061","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"MAINTENANCE_VS_ENHANCEMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"judgment"},"references":["IAS 36 §42","IAS 36 §44","IAS 36 §48","IAS 36 §49"],"exercise":{"prompt":{"fr":"","en":"Read the case and answer the questions.","es":""},"explanation":{"fr":"","en":"Completing and maintaining: included; enhancing without commitment: excluded (IAS 36, paras. 42, 44, 48 and 49).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"At 31 December N a laboratory tests a vaccine production unit (CGU). A new packaging building under construction is part of the CGU: 400,000 remains to be paid in N+1 to complete it. The N+1 budget also includes 120,000 to replace the worn clean-room filters like for like and 600,000 for a robotic line that would increase capacity by 30% (no order placed, no expenditure incurred), generating an additional margin of 250,000 a year from N+2.","es":""},"parts":[{"prompt":{"fr":"","en":"Which N+1 outflows enter value in use?","es":""},"explanation":{"fr":"","en":"Remaining outflows to complete an asset under construction are included (IAS 36, para. 42); like-for-like replacement maintains the current condition (IAS 36, para. 49); the uncommitted enhancement is excluded (IAS 36, paras. 44 and 48).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 400,000 still to be spent to complete the building","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 120,000 for replacing the filters","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The 600,000 for the robotic line","es":""},"correct":false,"feedback":{"fr":"","en":"Uncommitted enhancement investment: excluded, like the margins it would generate.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Assumption: before these items, the N+1 net operating cash flow is 1,500,000. Calculate the N+1 cash flow to use.","es":""},"explanation":{"fr":"","en":"1,500,000 − 400,000 (completion, para. 42) − 120,000 (replacement, para. 49) = 980,000; the robotic line is excluded (para. 48).","es":""},"common_error":{"fr":"","en":"Including the robotic line or forgetting completion and replacement outflows: these outflows are deducted and the uncommitted enhancement excluded.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Net operating cash flow before these items","es":""},"value":"1500000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"N+1 cash flow to use","es":""},"answer":980000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The additional margin of 250,000 a year may be included from N+2, since the approved budget provides for it.","es":""},"explanation":{"fr":"","en":"False. As long as the enhancement expenditure has not been incurred, the additional inflows it would generate are excluded, even if a budget provides for them (IAS 36, paras. 44 and 48).","es":""},"common_error":{"fr":"","en":"Using a margin budgeted for an uncommitted enhancement: those inflows are excluded until the expenditure is incurred.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000062","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRICULTURE","tested_point":"TERMINAL_DISPOSAL_CASH_FLOW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §52","IAS 36 §53"],"exercise":{"prompt":{"fr":"","en":"A farm estimates the disposal cash flow of a combine harvester at the end of its life, in 4 years. Today, a similar harvester of the same age, used under comparable conditions, resells for 120,000. Case assumption: general and specific price changes over the next 4 years increase this price by 5%. Estimated costs of disposal: 6,000. Rate: 8% (year-4 factor: 0.7350). Complete.","es":""},"explanation":{"fr":"","en":"The final disposal cash flow starts from current prices of similar assets at the end of their life, adjusted for general and specific future price changes (IAS 36, para. 53): 120,000 × 1.05 = 126,000; it is reduced by the costs of disposal (IAS 36, para. 52): 126,000 − 6,000 = 120,000. Present value = 120,000 × 0.7350 = 88,200.","es":""},"common_error":{"fr":"","en":"Starting from the price of a new harvester, or forgetting to deduct the costs of disposal.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Net disposal cash flow at the end of the useful life: {{flow}}; present value of that cash flow: {{pv}}","es":""},"blanks":[{"id":"flow","mode":"NUMBER","answer":120000,"tolerance":0},{"id":"pv","mode":"NUMBER","answer":88200,"tolerance":1}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000063","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MINING","tested_point":"IMPAIRMENT_ENTRY_AFTER_FOREIGN_VALUE_IN_USE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000007","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §18","IAS 36 §54","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"A European mining company tests a crusher in Canada, carried at cost, with largely independent inflows (case data). Carrying amount: EUR 640,000. Present value of the Canadian dollar cash flows, discounted at the rate appropriate for CAD: CAD 875,000. Spot rate: CAD 1 = EUR 0.68. Fair value less costs of disposal: EUR 560,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Value in use = CAD 875,000 × 0.68 = EUR 595,000, the present value in the currency being translated at the spot rate (IAS 36, para. 54). Recoverable amount = max (560,000; 595,000) = 595,000 (IAS 36, para. 18). Loss = 640,000 − 595,000 = 45,000, recognised in profit or loss as an impairment loss (IAS 36, paras. 59 and 60): it is not a foreign exchange loss.","es":""},"common_error":{"fr":"","en":"Using net fair value (loss of 80,000) or classifying the loss as an exchange difference.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment — mining equipment","es":""}},{"id":"FX_LOSS","text":{"fr":"","en":"Foreign exchange losses (profit or loss)","es":""}},{"id":"OCI_RESERVE","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":45000},{"id":"L2","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":45000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000064","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"EXPECTED_CASH_FLOW_PRESENT_VALUE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"numeric-example"},"references":["IAS 36 §A2","IAS 36 §A7","IAS 36 §A11"],"exercise":{"prompt":{"fr":"","en":"A solar plant expects a cash flow at the end of year 2 that depends on sunshine: 300,000 (probability 20%), 500,000 (50%) or 700,000 (30%). Discount rate used (case data): 7%, factor for year 2 = 0.8734. Calculate.","es":""},"explanation":{"fr":"","en":"Expected cash flow = 0.2 × 300,000 + 0.5 × 500,000 + 0.3 × 700,000 = 60,000 + 250,000 + 210,000 = 520,000: all expectations weighted by their probabilities (IAS 36, paras. A7 and A11). Present value = 520,000 × 0.8734 = 454,168. The most likely cash flow (500,000) used by the traditional approach ignores the asymmetry of outcomes; the result must reflect the weighted average of possible outcomes (IAS 36, para. A2).","es":""},"common_error":{"fr":"","en":"Taking the simple average of the three amounts (500,000) without weighting them by their probabilities.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Discount factor for year 2","es":""},"value":"0.8734","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expected cash flow","es":""},"answer":520000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the expected cash flow","es":""},"answer":454168,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Difference between the expected cash flow and the most likely cash flow (undiscounted)","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000065","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"UNCERTAIN_TIMING_EXPECTED_PRESENT_VALUE","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"expected-cash-flows"},"references":["IAS 36 §A8","IAS 36"],"exercise":{"prompt":{"fr":"","en":"A laboratory expects a milestone royalty of 2,000,000, received in 1 year (probability 30%) or in 2 years (70%) depending on the drug's approval date. Teaching assumption: only time value is at stake; 1-year rate 4.0% (factor 0.9615), 2-year rate 4.5% (factor 0.9157).","es":""},"explanation":{"fr":"","en":"Each possible date is discounted at its own rate: 2,000,000 × 0.9615 = 1,923,000 and 2,000,000 × 0.9157 = 1,831,400; the present values are weighted by their probabilities: 0.3 × 1,923,000 + 0.7 × 1,831,400 = 576,900 + 1,281,980 = 1,858,880 (IAS 36, para. A8). The traditional approach would use only the most likely date (1,831,400) and ignore the probability of earlier receipt (IAS 36, para. A9).","es":""},"common_error":{"fr":"","en":"Using only the most likely timing (2 years), as the traditional approach would.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Royalty amount","es":""},"value":"2000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value if received in 1 year","es":""},"answer":1923000,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value if received in 2 years","es":""},"answer":1831400,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Expected present value","es":""},"answer":1858880,"tolerance":2,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value if received in 1 year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Royalty amount","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"factor 0.9615","es":""},"value":0.9615}],"result":1923000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Present value if received in 2 years","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Royalty amount","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"factor 0.9157","es":""},"value":0.9157}],"result":1831400,"unit":"EUR"}],"references":["REF.IAS36.A8","REF.IAS36.A9"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000066","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"MINING","tested_point":"RATE_ADJUSTMENTS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-build"},"references":["IAS 36 §A15","IAS 36 §A18","IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"A mining company starts from its weighted average cost of capital to estimate the rate for a lithium mine in South America. Its cash flows are already based on three weighted price scenarios. Classify each item.","es":""},"explanation":{"fr":"","en":"The starting rate is adjusted for risks specific to the asset's cash flows, including country and currency risk (IAS 36, para. A18), but not for a risk already reflected in the cash flows, which would be counted twice (IAS 36, para. A15), nor for the entity's capital structure (IAS 36, para. A19).","es":""},"common_error":{"fr":"","en":"Adding a price risk premium although the cash flow scenarios already deal with it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ADJUST_RATE","text":{"fr":"","en":"To be reflected in the rate","es":""}},{"id":"DO_NOT_ADJUST","text":{"fr":"","en":"Not to be reflected in the rate","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Country risk of the operating location, not reflected in the cash flows","es":""},"category":"ADJUST_RATE"},{"id":"I2","text":{"fr":"","en":"Currency risk on cash flows in the local currency, not reflected in the cash flows","es":""},"category":"ADJUST_RATE"},{"id":"I3","text":{"fr":"","en":"Lithium price risk, already dealt with through the weighted scenarios","es":""},"category":"DO_NOT_ADJUST"},{"id":"I4","text":{"fr":"","en":"The company's high leverage, which increases its own cost of financing","es":""},"category":"DO_NOT_ADJUST"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000067","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"RATE_STARTING_POINTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-build"},"references":["IAS 36 §56","IAS 36 §57","IAS 36 §A16","IAS 36 §A17"],"exercise":{"prompt":{"fr":"","en":"No asset-specific rate is observable in the market. Which rates may the entity consider as a starting point, before adjustments?","es":""},"explanation":{"fr":"","en":"When no specific rate is observable (IAS 36, para. 57), the entity uses surrogates (IAS 36, para. A16); it may start from its weighted average cost of capital, its incremental borrowing rate and other market borrowing rates (IAS 36, para. A17), before adjusting them. The ideal remains a rate derived from transactions for similar assets or the cost of capital of a comparable listed entity (IAS 36, para. 56).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its weighted average cost of capital, determined for example using the CAPM","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Its incremental borrowing rate","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Other market borrowing rates","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The return required by the board to approve an investment","es":""},"correct":false,"feedback":{"fr":"","en":"An internal investment hurdle is not a market rate.","es":""}},{"id":"E","text":{"fr":"","en":"The rate on a regulated savings account, without adjustment","es":""},"correct":false,"feedback":{"fr":"","en":"A rate not adjusted for the asset's specific risks is not appropriate; any starting rate must be adjusted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000068","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"DISCOUNT_RATE_MEMO_REVIEW","difficulty":"EXPERT","estimated_time_s":210,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"pitfalls"},"references":["IAS 36 §55","IAS 36 §A15","IAS 36 §A19","IAS 36 §A20","IAS 36 §A21"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the memo setting the discount rate for a publisher's 'management software' CGU. The cash flows are pre-tax and based on three weighted scenarios of customer churn. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The rate must be pre-tax (IAS 36, paras. 55 and A20), must not repeat a risk already in the cash flows (para. A15) and must be independent of the capital structure (para. A19). A single rate is the rule when value in use is not sensitive to differences in risk or to the term structure (para. A21).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'We start from the post-tax weighted average cost of capital of comparable listed companies, i.e. 9%, and apply it as it stands to the cash flows.'","es":""},"erroneous":true,"correction":{"fr":"","en":"The cash flows are pre-tax: the post-tax starting rate must be converted into a pre-tax rate (IAS 36, paras. 55 and A20).","es":""}},{"id":"S2","text":{"fr":"","en":"'We add 3 points for the risk of customer churn.'","es":""},"erroneous":true,"correction":{"fr":"","en":"That risk is already reflected in the weighted cash flow scenarios; also reflecting it in the rate would count it twice (IAS 36, para. A15).","es":""}},{"id":"S3","text":{"fr":"","en":"'As the publisher has no debt, we replace this starting rate with its own cost of equity, so that the rate reflects its capital structure.'","es":""},"erroneous":true,"correction":{"fr":"","en":"The rate is independent of the entity's capital structure and of how the asset was financed (IAS 36, para. A19): it cannot be changed to reflect the publisher's lack of debt. Choosing and adjusting the starting rate is then a matter of professional judgement, to be documented.","es":""}},{"id":"S4","text":{"fr":"","en":"'A single rate is used: the risk profile is stable over the whole period and value in use is not very sensitive to the term structure of interest rates.'","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000069","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"INFRASTRUCTURE","tested_point":"RATES_PER_PERIOD","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"numeric-example"},"references":["IAS 36 §A21"],"exercise":{"prompt":{"fr":"","en":"A car park concession holder expects 800,000 a year at the end of years 1, 2 and 3. The approaching end of the concession makes the cash flows riskier over time: management uses separate rates per period (5%, 6% and 7%, each applied from the start). Factors: 0.9524; 0.8900; 0.8163.","es":""},"explanation":{"fr":"","en":"800,000 × 0.9524 = 761,920; 800,000 × 0.8900 = 712,000; 800,000 × 0.8163 = 653,040; total 2,126,960. Separate rates per period are used when value in use is sensitive to differences in risk between periods or to the term structure of interest rates (IAS 36, para. A21).","es":""},"common_error":{"fr":"","en":"Applying the rate for year 3 (7%) to every year, which undervalues the near cash flows.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual cash flow","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of year 1","es":""},"answer":761920,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of year 2","es":""},"answer":712000,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Present value of year 3","es":""},"answer":653040,"tolerance":1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Value in use","es":""},"answer":2126960,"tolerance":3,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value of year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual cash flow","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Factors: 0.9524","es":""},"value":0.9524}],"result":761920,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Value in use","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of year 1","es":""},"value":761920,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Present value of year 2","es":""},"value":712000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Present value of year 3","es":""},"value":653040,"unit":"EUR"}],"result":2126960,"unit":"EUR"}],"references":["REF.IAS36.A21"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000070","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"MEDIA","tested_point":"EXPECTED_CASH_FLOW_OBJECTIONS","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"expected-cash-flows"},"references":["IAS 36 §A10","IAS 36 §A14"],"exercise":{"prompt":{"fr":"","en":"For a single film whose success can have only two sharply contrasting outcomes, IAS 36 considers the expected cash flow approach unsuitable and requires only the most likely amount to be used.","es":""},"explanation":{"fr":"","en":"False. The standard answers this objection: it relates to a different measurement objective, whereas IAS 36 seeks the recoverable amount of the asset, which the single most likely amount does not represent (IAS 36, para. A14). It also points out that the traditional approach requires the same estimates, without the computational transparency of expected cash flows (IAS 36, para. A10).","es":""},"common_error":{"fr":"","en":"Reserving expected cash flows for portfolios with many outcomes: IAS 36 seeks the asset's recoverable amount, which the most likely amount alone does not represent.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000071","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES","IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BIOTECH","tested_point":"CHOOSING_PRESENT_VALUE_TECHNIQUE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A3","IAS 36 §A5","IAS 36 §A6","IAS 36 §A7","IAS 36 §A12","IAS 36 §A15"],"exercise":{"prompt":{"fr":"","en":"Read the case and answer the questions.","es":""},"explanation":{"fr":"","en":"With no market comparable, the expected cash flow approach is better suited (IAS 36, paras. A6 and A7), subject to a reasonable cost-benefit constraint (IAS 36, para. A12) and with no double counting of risk (IAS 36, para. A15).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A biotech company tests a highly specific bioproduction platform: there is no market for this asset and no observable comparable asset. The teams have built three cash flow scenarios for next year: 1,000,000 (25%), 1,600,000 (50%), 2,000,000 (25%). The controller proposes discounting the expected cash flow at a rate that includes a 4-point premium 'for volume uncertainty', although the scenarios are precisely about volumes.","es":""},"parts":[{"prompt":{"fr":"","en":"Why is the traditional approach difficult to apply here?","es":""},"explanation":{"fr":"","en":"The traditional approach is simple when comparable assets can be observed (IAS 36, para. A5); it deals poorly with a non-financial asset with no market and no comparable, because finding a rate commensurate with the risk requires analysing an observed asset with similar cash flows (IAS 36, para. A6).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because it is prohibited for non-financial assets","es":""},"correct":false,"feedback":{"fr":"","en":"It is not prohibited; it is simply poorly suited to complex problems of this kind.","es":""}},{"id":"B","text":{"fr":"","en":"Because, with no observed comparable asset with similar cash flows, it is hard to infer a rate commensurate with the risk","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because it requires several rates per period","es":""},"correct":false,"feedback":{"fr":"","en":"The number of rates is not the difficulty; it is the lack of a market reference to set the risk-adjusted rate.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate next year's expected cash flow.","es":""},"explanation":{"fr":"","en":"0.25 × 1,000,000 + 0.50 × 1,600,000 + 0.25 × 2,000,000 = 250,000 + 800,000 + 500,000 = 1,550,000 (IAS 36, para. A7).","es":""},"common_error":{"fr":"","en":"Taking the central scenario (1,600,000): the expected cash flow weights all outcomes by their probabilities.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Expected cash flow: {{expected}}","es":""},"blanks":[{"id":"expected","mode":"NUMBER","answer":1550000,"tolerance":0}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The 4-point premium 'for volume uncertainty' should be kept in the rate, to be prudent.","es":""},"explanation":{"fr":"","en":"False. The weighted scenarios already reflect the variability of volumes: also reflecting it in the rate would count that risk twice (IAS 36, para. A15). Cash flows and rate must be consistent and free from bias, including 'prudent' bias (IAS 36, para. A3).","es":""},"common_error":{"fr":"","en":"Keeping a risk premium for prudence when the scenarios already include that risk: it would be counted twice.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000072","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"AUTOMOTIVE","tested_point":"PRE_TAX_FINANCING_INDEPENDENT_RATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000008","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §51","IAS 36 §55","IAS 36 §A19","IAS 36 §A20"],"exercise":{"prompt":{"fr":"","en":"A carmaker has a post-tax weighted average cost of capital of 8% and value in use cash flows prepared before tax. Complete the sentence.","es":""},"explanation":{"fr":"","en":"The rate is pre-tax (IAS 36, para. 55): a post-tax starting rate must be converted (IAS 36, para. A20) to remain consistent with pre-tax cash flows (IAS 36, para. 51). It is independent of the entity's capital structure and of how the asset was financed (IAS 36, para. A19), but reflects the market's assessment and the risks specific to the asset (IAS 36, para. 55).","es":""},"common_error":{"fr":"","en":"Applying a post-tax rate as such to pre-tax flows, or making it depend on financing: it is converted to pre-tax and is independent of financing.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The 8% rate must be {{tax}} before being applied to the cash flows, and it does not depend {{financing}}.","es":""},"blanks":[{"id":"tax","mode":"CHOICE","choices":[{"id":"CONVERTED_PRE_TAX","text":{"fr":"","en":"converted into a pre-tax rate","es":""}},{"id":"USED_AS_IS","text":{"fr":"","en":"used as it stands","es":""}},{"id":"REDUCED_BY_TAX","text":{"fr":"","en":"reduced by the tax rate","es":""}}],"answer":"CONVERTED_PRE_TAX"},{"id":"financing","mode":"CHOICE","choices":[{"id":"OF_FINANCING","text":{"fr":"","en":"on how the entity or the asset is financed","es":""}},{"id":"OF_MARKET","text":{"fr":"","en":"on the market's assessment","es":""}},{"id":"OF_ASSET_RISK","text":{"fr":"","en":"on the risks specific to the asset","es":""}}],"answer":"OF_FINANCING"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000073","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"MANUFACTURING","tested_point":"COST_MODEL_LOSS_IN_PROFIT_OR_LOSS","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Case data: a manufacturer carries its presses at cost. So as not to hit its profit, it recognises the impairment loss on a press in other comprehensive income. Is this treatment compliant with IAS 36?","es":""},"explanation":{"fr":"","en":"No. For an asset that is not revalued, the impairment loss is recognised immediately in profit or loss (IAS 36, para. 60). Only an asset carried at a revalued amount allows the loss to be charged first to its own revaluation surplus.","es":""},"common_error":{"fr":"","en":"Believing that the entity can choose where to recognise the loss according to the desired effect on profit.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000074","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"IMPAIRMENT_LOSS_AMOUNT","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Case data: a store's fittings, carried at cost, show an indication of impairment at 31 December N. Calculate the recoverable amount, the impairment loss and the new carrying amount.","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of the two measures: max(310,000; 345,000) = EUR 345,000 (IAS 36, para. 18). It is lower than the carrying amount: the asset is written down to EUR 345,000 and the loss is 420,000 − 345,000 = EUR 75,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Using the lower of the two measures (EUR 310,000) and overstating the loss at EUR 110,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"345000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Recoverable amount","es":""},"answer":345000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Impairment loss","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"New carrying amount","es":""},"answer":345000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":345000,"unit":"EUR"}],"result":75000,"unit":"EUR"}],"references":["REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000075","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"REVALUED_ASSET_LOSS_SPLIT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"entries"},"references":["IAS 36 §60","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel is measured under the revaluation model. At 31 December N, after applying the revaluation requirements, its carrying amount is EUR 1,200,000; the revaluation surplus for this hotel is EUR 180,000. Its recoverable amount is EUR 950,000. Record the impairment entry (the loss is recorded in an accumulated impairment losses account).","es":""},"explanation":{"fr":"","en":"Loss = 1,200,000 − 950,000 = EUR 250,000. For a revalued asset it is treated as a revaluation decrease (IAS 36, para. 60): EUR 180,000 is charged to this hotel's revaluation surplus, in other comprehensive income, and the remaining EUR 70,000 goes to profit or loss (IAS 36, para. 61). Total debits 250,000 = total credits 250,000.","es":""},"common_error":{"fr":"","en":"Taking the full EUR 250,000 to profit or loss as for an asset at cost, or charging all of it to the revaluation surplus beyond its balance.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"IMPAIRMENT_LOSS_PL","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses — buildings","es":""}},{"id":"IMPAIRMENT_PROVISION_LIABILITY","text":{"fr":"","en":"Impairment provision (liability)","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"REVALUATION_SURPLUS","side":"DEBIT","amount":180000},{"id":"L2","account":"IMPAIRMENT_LOSS_PL","side":"DEBIT","amount":70000},{"id":"L3","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":250000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000076","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"REVALUATION_SURPLUS_SAME_ASSET_ONLY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"revalued-asset-rule"},"references":["IAS 36 §61","IAS 16 §40"],"exercise":{"prompt":{"fr":"","en":"Case data: a property company revalues two buildings. The revaluation surplus for building A is EUR 300,000, and for building B EUR 20,000. Building B suffers an impairment loss of EUR 100,000. How is it recognised?","es":""},"explanation":{"fr":"","en":"The loss on a revalued asset goes to other comprehensive income up to the revaluation surplus **for the same asset**, the excess to profit or loss (IAS 36, para. 61; same logic as IAS 16, para. 40): EUR 20,000 in other comprehensive income, 100,000 − 20,000 = EUR 80,000 in profit or loss.","es":""},"common_error":{"fr":"","en":"Treating the revaluation surplus as a reserve shared by all revalued assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 100,000 in other comprehensive income, charged to the total surplus (EUR 320,000)","es":""},"correct":false,"feedback":{"fr":"","en":"Only the revaluation surplus for the same asset (B) can absorb its loss; A's surplus is not available.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 20,000 in other comprehensive income and EUR 80,000 in profit or loss","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"EUR 100,000 in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"For a revalued asset, the loss is first charged to that asset's revaluation surplus, here EUR 20,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000077","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TELECOM","tested_point":"DEPRECIATION_AFTER_IMPAIRMENT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"subsequent-depreciation"},"references":["IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Case data: after impairment at 31 December N, antenna equipment has a carrying amount of EUR 290,000. Remaining useful life: 6 years; estimated residual value: EUR 20,000. The entity uses the straight-line method (a method chosen by the entity). Before the loss, the annual charge was EUR 75,000. Complete.","es":""},"explanation":{"fr":"","en":"The charge for future periods allocates the revised carrying amount less residual value over the remaining useful life (IAS 36, para. 63): 290,000 − 20,000 = EUR 270,000, then 270,000 ÷ 6 = EUR 45,000. The old charge of EUR 75,000 is no longer relevant.","es":""},"common_error":{"fr":"","en":"Keeping the pre-loss charge, or forgetting to deduct the residual value (290,000 ÷ 6 ≈ EUR 48,333).","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Depreciable amount from N+1: EUR {{base}}. Annual charge for N+1: EUR {{charge}}.","es":""},"blanks":[{"id":"base","mode":"NUMBER","answer":270000,"tolerance":0},{"id":"charge","mode":"NUMBER","answer":45000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000078","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"ENERGY","tested_point":"LOSS_EXCEEDING_CARRYING_AMOUNT","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"loss-exceeds-carrying-amount"},"references":["IAS 36 §59","IAS 36 §62"],"exercise":{"prompt":{"fr":"","en":"Case data: a pilot biogas unit has a carrying amount of EUR 50,000. Operating it in future is expected to generate net outflows, and the estimate shows a 'loss' of EUR 80,000. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The loss writes the asset down to its recoverable amount (IAS 36, para. 59), which can only reduce the existing carrying amount. When the estimated loss exceeds that amount, a liability is recognised only if another standard requires it (IAS 36, para. 62).","es":""},"common_error":{"fr":"","en":"Recognising an 'impairment provision' in liabilities for the excess by reflex.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under IAS 36, the asset is impaired up to its carrying amount of EUR 50,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 36 requires a provision of EUR 30,000 to be recognised in liabilities for the excess.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not create a liability; a liability is recognised only if another standard requires it.","es":""}},{"id":"C","text":{"fr":"","en":"A liability for the excess is recognised only if another standard requires it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The EUR 30,000 excess is carried forward and charged against future depreciation of other assets.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no carry-forward mechanism: the loss concerns the asset tested and is limited to its carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000079","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION","IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"IMPAIRMENT_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"pitfalls"},"references":["IAS 36 §18","IAS 36 §60","IAS 36 §63","IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Case data: an automotive supplier carries its stamping lines at cost. One line has a carrying amount of EUR 850,000; its fair value less costs of disposal is EUR 700,000 and its value in use EUR 640,000. Review a colleague's memo and spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"S1 is correct: recoverable amount = max(700,000; 640,000) (IAS 36, para. 18). S2 is wrong: immediately in profit or loss for an asset at cost (IAS 36, para. 60). S3 is wrong: prospective depreciation on the new base (IAS 36, para. 63). S4 is correct (IAS 36, para. 64).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The recoverable amount is EUR 700,000, the higher of the two measures; the loss is EUR 150,000.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The EUR 150,000 loss is recognised in other comprehensive income because it is not yet realised.","es":""},"erroneous":true,"correction":{"fr":"","en":"For an asset at cost, the loss is recognised immediately in profit or loss (IAS 36, para. 60).","es":""}},{"id":"S3","text":{"fr":"","en":"In N+1, depreciation continues to be calculated on original cost, to keep comparability.","es":""},"erroneous":true,"correction":{"fr":"","en":"The charge is recalculated on the revised carrying amount (EUR 700,000), less residual value, over the remaining useful life (IAS 36, para. 63).","es":""}},{"id":"S4","text":{"fr":"","en":"Deferred tax is reviewed by comparing the revised carrying amount of EUR 700,000 with the line's tax base, under IAS 12.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000080","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"DEFERRED_TAX_AFTER_IMPAIRMENT","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §59","IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Case data: a piece of laboratory equipment has a carrying amount of EUR 260,000, equal to its tax base. Its recoverable amount is EUR 180,000; the tax authority ignores the impairment. Teaching assumption: the IAS 12 conditions for recognising a deferred tax asset are met and the tax effect is recognised in profit or loss, like the loss. Tax rate: 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Loss = 260,000 − 180,000 = EUR 80,000 (IAS 36, para. 59). Deferred tax is determined under IAS 12 by comparing the revised carrying amount (180,000) with the tax base (260,000) (IAS 36, para. 64): difference EUR 80,000, deferred tax 80,000 × 25% = EUR 20,000. In this example the loss weighs 80,000 − 20,000 = EUR 60,000 on net profit.","es":""},"common_error":{"fr":"","en":"Forgetting deferred tax because the loss is not immediately tax-deductible.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount before the test","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Temporary difference","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Net effect of the loss on profit after tax","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Temporary difference","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate","es":""},"value":25,"unit":"PERCENT"}],"result":20000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Net effect of the loss on profit after tax","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Temporary difference","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax asset","es":""},"value":20000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"references":["REF.IAS36.59","REF.IAS36.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000081","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS","IAS36.IMPAIRMENT_LOSS.RECOGNITION","IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"REVALUED_WAREHOUSE_FULL_CYCLE","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"judgment"},"references":["IAS 36 §5","IAS 36 §60","IAS 36 §61","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Deal with the impairment of Logistra's warehouse at 31 December N and its consequences for N+1.","es":""},"explanation":{"fr":"","en":"Summary: loss of EUR 500,000, of which EUR 300,000 is charged to the Lyon warehouse's revaluation surplus and EUR 200,000 to profit or loss (IAS 36, paras. 60 and 61); charge of EUR 95,000 for N+1 (IAS 36, para. 63); the other warehouses' surplus is not available.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Logistra, a logistics provider, measures its warehouses under the revaluation model. The loss of a major customer is an indication of impairment for the Lyon warehouse. The management controller proposes to charge any loss to the group's total revaluation surplus, which amounts to EUR 900,000 (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Lyon warehouse at 31 December N (case data)","es":""},"body":{"fr":"","en":"Carrying amount after applying the revaluation requirements: EUR 2,400,000. Revaluation surplus for the Lyon warehouse: EUR 300,000. Recoverable amount (value in use): EUR 1,900,000. Remaining useful life: 20 years; residual value nil; straight-line method chosen by the entity.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the loss and how it is split.","es":""},"explanation":{"fr":"","en":"Loss = 2,400,000 − 1,900,000 = EUR 500,000. Charged to the Lyon warehouse's revaluation surplus up to EUR 300,000, the remaining EUR 200,000 to profit or loss (IAS 36, para. 61).","es":""},"common_error":{"fr":"","en":"Taking the whole loss to profit or loss on a revalued asset: it is first charged against that same asset's revaluation surplus.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"1900000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Part in other comprehensive income","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":1900000,"unit":"EUR"}],"result":500000,"unit":"EUR"}],"rationale":{"fr":"","en":"Charged to the Lyon warehouse's revaluation surplus up to EUR 300,000, the remaining EUR 200,000 to profit or loss (IAS 36, para. 61).","es":""},"references":["REF.IAS36.61"]}},{"prompt":{"fr":"","en":"Record the entry at 31 December N.","es":""},"explanation":{"fr":"","en":"Debit the revaluation surplus 300,000 and the loss in profit or loss 200,000; credit accumulated impairment losses 500,000 (IAS 36, paras. 60 and 61). Total debits = total credits = 500,000.","es":""},"common_error":{"fr":"","en":"Debiting 500,000 to profit or loss: 300,000 is charged against the revaluation surplus in OCI; only the remainder is an expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"IMPAIRMENT_LOSS_PL","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses — buildings","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense","es":""}}],"lines":[{"id":"L1","account":"REVALUATION_SURPLUS","side":"DEBIT","amount":300000},{"id":"L2","account":"IMPAIRMENT_LOSS_PL","side":"DEBIT","amount":200000},{"id":"L3","account":"ACCUMULATED_IMPAIRMENT","side":"CREDIT","amount":500000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"Calculate the depreciation charge for N+1.","es":""},"explanation":{"fr":"","en":"Revised carrying amount 1,900,000, residual value nil, 20 years remaining: 1,900,000 ÷ 20 = EUR 95,000 (IAS 36, para. 63).","es":""},"common_error":{"fr":"","en":"Depreciating on the old carrying amount: depreciation is recomputed on the new carrying amount after the loss.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Charge for N+1: EUR {{charge}}.","es":""},"blanks":[{"id":"charge","mode":"NUMBER","answer":95000,"tolerance":0}],"id":"P3","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What do you answer the management controller?","es":""},"explanation":{"fr":"","en":"The loss on a revalued asset is charged to other comprehensive income only up to the revaluation surplus for the same asset (IAS 36, para. 61). The surplus must therefore be tracked and documented asset by asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Agreed: the total surplus of EUR 900,000 is enough to absorb the whole loss with no effect on profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The surpluses of the other warehouses cannot absorb the loss on the Lyon warehouse.","es":""}},{"id":"B","text":{"fr":"","en":"No: only the surplus for the Lyon warehouse (EUR 300,000) can be used; EUR 200,000 goes to profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No: the whole loss goes to profit or loss, because a revalued warehouse is outside the scope of IAS 36.","es":""},"correct":false,"feedback":{"fr":"","en":"Revalued assets remain within the scope of IAS 36, after the revaluation requirements have been applied (IAS 36, para. 5).","es":""}}],"id":"P4","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000082","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION","IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"IMPAIRMENT_RECOGNITION_SEQUENCE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000009","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"how-to-apply"},"references":["IAS 36 §18","IAS 36 §59","IAS 36 §60","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps for recognising an impairment loss on an individual asset carried at cost.","es":""},"explanation":{"fr":"","en":"Start from the carrying amount, take the recoverable amount (IAS 36, para. 18), measure the loss (IAS 36, para. 59), recognise it in profit or loss (IAS 36, para. 60), then adjust future depreciation (IAS 36, para. 63).","es":""},"common_error":{"fr":"","en":"Recognising the loss before taking the higher of the two measures, or forgetting to adjust future depreciation.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Determine the carrying amount of the asset at the test date","es":""}},{"id":"S2","text":{"fr":"","en":"Take the recoverable amount: the higher of fair value less costs of disposal and value in use","es":""}},{"id":"S3","text":{"fr":"","en":"Compare and calculate the loss: carrying amount − recoverable amount","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise the loss immediately in profit or loss","es":""}},{"id":"S5","text":{"fr":"","en":"Recalculate depreciation for later periods on the revised carrying amount","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000083","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MINING","tested_point":"ASSET_WITHOUT_INDEPENDENT_INFLOWS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"understand"},"references":["IAS 36 §66","IAS 36 §67"],"exercise":{"prompt":{"fr":"","en":"Case data: a copper mine has a 4 km conveyor that carries ore to the port. It serves only the mine and its resale value is limited to scrap. There is an indication of impairment for the conveyor. At what level is the recoverable amount estimated?","es":""},"explanation":{"fr":"","en":"The recoverable amount of an individual asset cannot be determined when its value in use is not close to its fair value less costs of disposal and it does not generate largely independent inflows; it is then estimated for its CGU, here the mine, as for the private railway mentioned in the standard (IAS 36, paras. 66 and 67).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The conveyor alone, at its scrap value","es":""},"correct":false,"feedback":{"fr":"","en":"Its value in use is not close to its resale value and it has no inflows of its own: it cannot be tested alone.","es":""}},{"id":"B","text":{"fr":"","en":"The mine as a whole, the CGU to which the conveyor belongs","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All of the mining group's activities","es":""},"correct":false,"feedback":{"fr":"","en":"The smallest group of assets with largely independent inflows is used, not the whole group.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000084","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION","IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"HOSPITALITY","tested_point":"CGU_OR_NOT_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"example"},"references":["IAS 36 §67","IAS 36 §68","IAS 36 §69","IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel group is analysing its assets. Classify each item according to whether it forms a CGU on its own (with its own assets), or can only be tested within a larger group.","es":""},"explanation":{"fr":"","en":"The Lyon hotel collects largely independent revenue, monitored and decided at its level (IAS 36, paras. 68 and 69). The bakery is a CGU because its output has an active market, even though it is consumed internally (IAS 36, para. 70). The laundry and the lift have no inflows of their own (IAS 36, para. 67). The three residences cannot be closed separately: together they form the CGU, like the bus routes in the standard (IAS 36, para. 68).","es":""},"common_error":{"fr":"","en":"Excluding the bakery because its bread is used internally: its output has an active market, so it forms a CGU.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OWN_CGU","text":{"fr":"","en":"Forms a CGU","es":""}},{"id":"WITHIN_LARGER_GROUP","text":{"fr":"","en":"Tested within a larger group","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A hotel in Lyon, with its own customers and revenue; management monitors its results and decides on its own whether to keep or sell it","es":""},"category":"OWN_CGU"},{"id":"I2","text":{"fr":"","en":"A laundry that handles only the group's hotel linen; there is no active market for this service in the region","es":""},"category":"WITHIN_LARGER_GROUP"},{"id":"I3","text":{"fr":"","en":"A bakery that delivers all its bread to the group's restaurants; this bread is routinely sold in an active local market","es":""},"category":"OWN_CGU"},{"id":"I4","text":{"fr":"","en":"A hotel's panoramic lift","es":""},"category":"WITHIN_LARGER_GROUP"},{"id":"I5","text":{"fr":"","en":"One residence operated, together with two others, under a single public concession that requires all three to remain open","es":""},"category":"WITHIN_LARGER_GROUP"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000085","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"CHEMICALS","tested_point":"INTERNAL_USE_DOES_NOT_PREVENT_CGU","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §70","IAS 36 §71"],"exercise":{"prompt":{"fr":"","en":"A unit that delivers all of its output to another group unit can never be a CGU, since it collects nothing from external customers.","es":""},"explanation":{"fr":"","en":"False. If there is an active market for this output, the unit is a CGU even if some or all of the output is used internally (IAS 36, para. 70); what matters is the ability to sell in an active market (IAS 36, para. 71).","es":""},"common_error":{"fr":"","en":"Confusing 'actual receipts from third parties' with 'output that can be sold in an active market'.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000086","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRIFOOD","tested_point":"TRANSFER_PRICE_ADJUSTMENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"transfer-price-example"},"references":["IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"Case data: a sugar mill supplies 120,000 t of sugar a year to the group's confectionery business at an internal price of EUR 450/t. Sugar is traded in an active market; management's best estimate of the future arm's length price is EUR 520/t. Calculate the annual amounts to be used for the impairment tests.","es":""},"explanation":{"fr":"","en":"120,000 × 450 = EUR 54,000,000 at the internal price; 120,000 × 520 = EUR 62,400,000 at the arm's length price. The internal price is replaced by the best estimate of the arm's length price for the sugar mill's inflows and for the confectionery business's outflows (IAS 36, para. 70): + EUR 8,400,000 on each side, with no net effect for the group.","es":""},"common_error":{"fr":"","en":"Adjusting only the sugar mill's receipts and forgetting the confectionery business's payments.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Volume supplied internally","es":""},"value":"120 000 t","unit":"TEXT"},{"label":{"fr":"","en":"Internal price","es":""},"value":"450 EUR/t","unit":"TEXT"},{"label":{"fr":"","en":"Best estimate of the arm's length price","es":""},"value":"520 EUR/t","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Sugar mill's receipts at the internal price","es":""},"answer":54000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Receipts used for the sugar mill's value in use","es":""},"answer":62400000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Increase in the payments used for the confectionery business","es":""},"answer":8400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Sugar mill's receipts at the internal price","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Case data: a sugar mill supplies 120,000","es":""},"value":120000},{"symbol":"b","meaning":{"fr":"","en":"t of sugar a year to the group's confectionery business at an internal price of EUR 450","es":""},"value":450,"unit":"EUR"}],"result":54000000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Receipts used for the sugar mill's value in use","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Case data: a sugar mill supplies 120,000","es":""},"value":120000},{"symbol":"b","meaning":{"fr":"","en":"management's best estimate of the future arm's length price is EUR 520","es":""},"value":520,"unit":"EUR"}],"result":62400000,"unit":"EUR"}],"references":["REF.IAS36.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000087","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"RETAIL","tested_point":"CGU_INDEPENDENCE_INDICATORS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"indicators-rule"},"references":["IAS 36 §68","IAS 36 §69"],"exercise":{"prompt":{"fr":"","en":"Case data: a DIY chain is asking whether each of its 30 stores is a CGU. Which factors are relevant in assessing whether their cash inflows are largely independent?","es":""},"explanation":{"fr":"","en":"The CGU is the smallest group of assets whose cash inflows are largely independent (IAS 36, para. 68). To assess this, the entity considers in particular how management monitors operations and makes decisions about continuing or disposing (IAS 36, para. 69). Legal form and shared tools are not indicators of independent receipts.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management monitors revenue and margin store by store","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Closure decisions are taken store by store","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Each store collects the purchases of its own local customers","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"All the stores belong to the same legal entity","es":""},"correct":false,"feedback":{"fr":"","en":"Legal structure says nothing about the independence of receipts.","es":""}},{"id":"E","text":{"fr":"","en":"The stores share the same accounting software","es":""},"correct":false,"feedback":{"fr":"","en":"A common tool is a shared cost; the criterion is about cash inflows.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000088","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY","IAS36.CGU.IDENTIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TRANSPORT","tested_point":"JUSTIFIED_CGU_CHANGE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §68","IAS 36 §72","IAS 36 §73","IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Case data: a ferry company used to test its three routes as a single CGU, because a public service contract required it to operate all of them. At the end of N-1 the contract ends: each route can now be stopped on its own and its performance is monitored separately. In N, an impairment loss is recognised on route C. What should be done?","es":""},"explanation":{"fr":"","en":"The end of the obligation to operate all three routes makes their revenue largely independent (IAS 36, para. 68): the change is justified (IAS 36, para. 72). As a loss is recognised for a CGU whose composition has changed, the entity provides the paragraph 130 disclosures, including a description of the change (IAS 36, paras. 73 and 130).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep a single CGU: the split can never change","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency applies unless a change is justified; the end of the contract is one.","es":""}},{"id":"B","text":{"fr":"","en":"Test each route as a CGU and provide the paragraph 130 disclosures on the change in aggregation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Test each route separately, with no particular disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"A change in aggregation followed by a loss on the CGU triggers disclosures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000089","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION","IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"CGU_SITUATIONS_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"example"},"references":["IAS 36 §67","IAS 36 §68","IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the corresponding treatment.","es":""},"explanation":{"fr":"","en":"The railway has neither inflows of its own nor a representative resale value: it is tested with the mine (IAS 36, para. 67). The obligation to serve all routes makes them a single CGU (IAS 36, para. 68). Output saleable in an active market forms a CGU, and internal prices are replaced by the best estimate of arm's length prices (IAS 36, para. 70).","es":""},"common_error":{"fr":"","en":"Keeping the internal price or adjusting it on one side only: it is replaced by the arm's length price for both seller and buyer.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Private railway serving only a mine","es":""}},{"id":"L2","text":{"fr":"","en":"Bus routes operated under a contract requiring a minimum service on each","es":""}},{"id":"L3","text":{"fr":"","en":"Intermediate product consumed internally but saleable in an active market","es":""}},{"id":"L4","text":{"fr":"","en":"Internal transfer price below market price","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Tested with the mine as a whole","es":""}},{"id":"R2","text":{"fr":"","en":"All the routes together form the CGU","es":""}},{"id":"R3","text":{"fr":"","en":"The unit that produces it is a separate CGU","es":""}},{"id":"R4","text":{"fr":"","en":"Replaced by the best estimate of the arm's length price, for seller and buyer","es":""}},{"id":"R5","text":{"fr":"","en":"Each route is a separate CGU","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000090","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION","IAS36.CGU.ACTIVE_MARKET_OUTPUT","IAS36.CGU.CONSISTENCY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"CGU_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"pitfalls"},"references":["IAS 36 §66","IAS 36 §68","IAS 36 §70","IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"Case data: a telecom operator documents how it identifies its CGUs. Its fibre subsidiary sells part of its capacity to third-party operators (active market) and the rest to the group's mobile network, at an internal price below market. Spot the incorrect statements in the memo.","es":""},"explanation":{"fr":"","en":"S1 and S2 follow the approach: individual asset first, then CGU (IAS 36, para. 66). S3 is wrong: the criterion is independence of inflows (IAS 36, para. 68). S4 is wrong: arm's length prices (IAS 36, para. 70). S5 respects consistency (IAS 36, para. 72).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"We first checked whether the recoverable amount of each antenna could be estimated on its own.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"As the antennas earn nothing on their own, we attach them to the regional network that bills its subscribers.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"For simplicity, each legal entity in the group is used as a CGU.","es":""},"erroneous":true,"correction":{"fr":"","en":"The CGU is the smallest group of assets with largely independent inflows, whatever the legal structure (IAS 36, para. 68).","es":""}},{"id":"S4","text":{"fr":"","en":"The value in use of the fibre subsidiary is calculated using the internal price charged to the mobile network.","es":""},"erroneous":true,"correction":{"fr":"","en":"As the capacity has an active market, the internal price is replaced by the best estimate of the arm's length price, for the fibre unit and for the mobile network (IAS 36, para. 70).","es":""}},{"id":"S5","text":{"fr":"","en":"The split is the same as in the previous year, as no new fact justifies changing it.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000091","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION","IAS36.CGU.ACTIVE_MARKET_OUTPUT","IAS36.CGU.CONSISTENCY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AGRIFOOD","tested_point":"DAIRY_GROUP_CGU_ANALYSIS","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"judgment"},"references":["IAS 36 §68","IAS 36 §69","IAS 36 §70","IAS 36 §71","IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"Analyse how the Laitval cooperative's CGUs should be identified.","es":""},"explanation":{"fr":"","en":"Summary: the collection centre and each shop are separate CGUs, the cheese plant being analysed on the same criteria; internal deliveries are valued at EUR 0.42/l on both sides (IAS 36, para. 70); the proposed grouping would go against the smallest-group requirement and the consistency of the split (IAS 36, paras. 68 and 72).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Laitval operates a milk collection centre, a cheese plant and three shops. Management is considering testing the whole as a single 'Laitval' CGU, which would avoid recognising a loss on the cheese plant (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Facts (case data)","es":""},"body":{"fr":"","en":"The collection centre supplies 50,000,000 litres a year to the cheese plant at an internal price of EUR 0.36/l and sells the rest to third-party dairies. Raw milk is traded in an active market; the best estimate of the future arm's length price is EUR 0.42/l. Each shop has its own local customers; management monitors their results and has already closed one shop on its own.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Is the collection centre a separate CGU?","es":""},"explanation":{"fr":"","en":"A group of assets whose output has an active market is a CGU even if some or all of that output is used internally (IAS 36, paras. 70 and 71).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because raw milk has an active market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No, because most of its output is used internally","es":""},"correct":false,"feedback":{"fr":"","en":"Internal use does not prevent CGU status when an active market exists.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the annual amounts to be used for internal deliveries.","es":""},"explanation":{"fr":"","en":"50,000,000 × 0.42 = EUR 21,000,000. Compared with the internal price (50,000,000 × 0.36 = EUR 18,000,000), the cheese plant's payments increase by EUR 3,000,000: the arm's length price applies on both sides (IAS 36, para. 70).","es":""},"common_error":{"fr":"","en":"Adjusting only the collection centre's inflows: the cheese plant's outflows are adjusted at the same arm's length price.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Volume supplied to the cheese plant","es":""},"value":"50 000 000 l","unit":"TEXT"},{"label":{"fr":"","en":"Internal price","es":""},"value":"0,36 EUR/l","unit":"TEXT"},{"label":{"fr":"","en":"Estimated arm's length price","es":""},"value":"0,42 EUR/l","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Receipts used for the collection centre","es":""},"answer":21000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Increase in the payments used for the cheese plant","es":""},"answer":3000000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Receipts used for the collection centre","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"50,000,000 litres a year to the cheese plant at an internal price of EUR","es":""},"value":50000000},{"symbol":"b","meaning":{"fr":"","en":"the best estimate of the future arm's length price is EUR 0.42","es":""},"value":0.42,"unit":"EUR"}],"result":21000000,"unit":"EUR"}],"rationale":{"fr":"","en":"Compared with the internal price (50,000,000 × 0.36 = EUR 18,000,000), the cheese plant's payments increase by EUR 3,000,000: the arm's length price applies on both sides (IAS 36, para. 70).","es":""},"references":["REF.IAS36.70"]}},{"prompt":{"fr":"","en":"Which facts support the conclusion that each shop is a CGU?","es":""},"explanation":{"fr":"","en":"Own revenue, monitoring and closure decisions at shop level indicate largely independent inflows (IAS 36, paras. 68 and 69).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Each shop has its own local customers","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Management monitors results shop by shop","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"One shop has already been closed on its own","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The three shops trade under the same brand","es":""},"correct":false,"feedback":{"fr":"","en":"A common brand does not, on its own, make revenue interdependent.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Laitval may group all its activities into a single CGU to avoid the loss on the cheese plant.","es":""},"explanation":{"fr":"","en":"False. The CGU is the smallest group with largely independent inflows (IAS 36, para. 68) and the split stays consistent unless a change is justified (IAS 36, para. 72); avoiding a loss is not a justification.","es":""},"common_error":{"fr":"","en":"Grouping activities to avoid a loss: the CGU is the smallest group with independent inflows, identified consistently.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000092","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CGU_CARRYING_AMOUNT_NOT_EQUITY","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §75","IAS 36 §76"],"exercise":{"prompt":{"fr":"","en":"The carrying amount of a CGU operated by a subsidiary is, in principle, equal to that subsidiary's equity.","es":""},"explanation":{"fr":"","en":"False. The carrying amount of the CGU comprises the assets directly attributable or allocated on a reasonable basis that generate the cash flows used, and in principle excludes recognised liabilities (IAS 36, para. 76); it is built consistently with the recoverable amount (IAS 36, para. 75). Equity, which is net of all liabilities, does not meet that definition.","es":""},"common_error":{"fr":"","en":"Confusing the CGU, a group of assets, with the legal entity and its net assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000093","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"CGU_ITEMS_INCLUDED_EXCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §75","IAS 36 §76","IAS 36 §77"],"exercise":{"prompt":{"fr":"","en":"Case data: a packaging manufacturer's Rouen plant is a CGU. Its value in use is based on the plant's sales and operating costs; it includes neither the collection of existing receivables, nor the payment of existing payables, nor financing flows. Classify each item.","es":""},"explanation":{"fr":"","en":"The assets directly attributable or allocated on a reasonable and consistent basis that generate the cash flows used are included (IAS 36, paras. 76 and 77). Recognised liabilities are excluded, with an exception (IAS 36, para. 76). Receivables are excluded here because their collection is not included in value in use: the carrying amount follows the perimeter of the recoverable amount (IAS 36, para. 75).","es":""},"common_error":{"fr":"","en":"Including the borrowing, payables or receivables in the carrying amount: it follows the scope of the cash flows used in recoverable amount.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Included in the CGU's carrying amount","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Excluded from the CGU's carrying amount","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The plant's production lines","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Share of a shared R&D centre, allocated on hours of use","es":""},"category":"INCLUDED"},{"id":"I3","text":{"fr":"","en":"Process patent used only by the plant","es":""},"category":"INCLUDED"},{"id":"I4","text":{"fr":"","en":"Bank loan that financed the plant","es":""},"category":"EXCLUDED"},{"id":"I5","text":{"fr":"","en":"The plant's trade payables","es":""},"category":"EXCLUDED"},{"id":"I6","text":{"fr":"","en":"The plant's trade receivables","es":""},"category":"EXCLUDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000094","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"CALCULATION","format":"CALCULATION","context":"PRINTING","tested_point":"CGU_CARRYING_AMOUNT_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"numeric-example"},"references":["IAS 36 §74","IAS 36 §76"],"exercise":{"prompt":{"fr":"","en":"Case data: a printing plant is a CGU. Its value in use includes neither the collection of existing receivables nor the payment of existing payables. The group's IT platform (EUR 250,000) is 20% used by the printing plant (reasonable basis). Calculate the CGU's carrying amount, its recoverable amount and any loss.","es":""},"explanation":{"fr":"","en":"Carrying amount = 1,400,000 + 600,000 + 20% × 250,000 = EUR 2,050,000; receivables and payables are excluded because their flows are not included (IAS 36, para. 76). Recoverable amount = max(1,750,000; 1,900,000) = EUR 1,900,000 (IAS 36, para. 74). Loss = 2,050,000 − 1,900,000 = EUR 150,000.","es":""},"common_error":{"fr":"","en":"Adding receivables and deducting payables (EUR 2,170,000), whereas value in use does not take them into account.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Presses and equipment","es":""},"value":"1400000","unit":"EUR"},{"label":{"fr":"","en":"Production building","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Group IT platform (total)","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Trade receivables","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"1750000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"1900000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of the CGU","es":""},"answer":2050000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"answer":1900000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU","es":""},"value":2050000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":1900000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS36.74","REF.IAS36.76"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000095","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"ASSUMED_LIABILITY_BOTH_SIDES","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"liability-example"},"references":["IAS 36 §75","IAS 36 §78"],"exercise":{"prompt":{"fr":"","en":"Case data: a wind farm is a CGU; any buyer would have to assume the recognised decommissioning provision. The offers received are for the farm, obligation included. Why is the carrying amount of the provision also deducted from value in use?","es":""},"explanation":{"fr":"","en":"When a buyer would have to assume a recognised liability, fair value less costs of disposal relates to the whole assets + liability; for a meaningful comparison, the carrying amount of the liability is deducted from the CGU's carrying amount and from its value in use (IAS 36, para. 78), in line with the consistency principle (IAS 36, para. 75).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"So that carrying amount, fair value less costs of disposal and value in use all relate to the whole assets + liability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To make the test more prudent by reducing the recoverable amount","es":""},"correct":false,"feedback":{"fr":"","en":"The provision is also deducted from the carrying amount: this is about consistency, not prudence.","es":""}},{"id":"C","text":{"fr":"","en":"Because liabilities are always deducted from the carrying amount of a CGU","es":""},"correct":false,"feedback":{"fr":"","en":"In principle liabilities are excluded; they are taken into account only if the recoverable amount cannot be determined without them.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000096","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"RESTORATION_LIABILITY_TEST","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"liability-example"},"references":["IAS 36 §74","IAS 36 §78"],"exercise":{"prompt":{"fr":"","en":"Case data: an open-pit mine is a CGU. Any buyer would have to assume the site restoration provision. Fair value less costs of disposal is the price for the whole, obligation included; value in use was calculated before restoration payments. Calculate.","es":""},"explanation":{"fr":"","en":"The provision is deducted on both sides (IAS 36, para. 78): carrying amount = 5,000,000 − 1,200,000 = EUR 3,800,000; value in use = 4,900,000 − 1,200,000 = EUR 3,700,000. Recoverable amount = max(3,500,000; 3,700,000) = EUR 3,700,000 (IAS 36, para. 74). Loss = 3,800,000 − 3,700,000 = EUR 100,000.","es":""},"common_error":{"fr":"","en":"Comparing the carrying amount of the assets before deducting the provision (EUR 5,000,000) with fair value less costs of disposal net of the obligation (EUR 3,500,000), and concluding on a loss of EUR 1,500,000: the two amounts do not cover the same perimeter.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the CGU's assets","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Restoration provision","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal (obligation included)","es":""},"value":"3500000","unit":"EUR"},{"label":{"fr":"","en":"Value in use before restoration","es":""},"value":"4900000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount of the CGU","es":""},"answer":3800000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Value in use used","es":""},"answer":3700000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Recoverable amount","es":""},"answer":3700000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Impairment loss","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount of the CGU","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU's assets","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restoration provision","es":""},"value":1200000,"unit":"EUR"}],"result":3800000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Value in use used","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use before restoration","es":""},"value":4900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restoration provision","es":""},"value":1200000,"unit":"EUR"}],"result":3700000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU","es":""},"value":3800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":3700000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"references":["REF.IAS36.74","REF.IAS36.78"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000097","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"SOFTWARE","tested_point":"ALL_CONTRIBUTING_ASSETS_INCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §76","IAS 36 §77"],"exercise":{"prompt":{"fr":"","en":"Which statements about the composition of a CGU's carrying amount are correct?","es":""},"explanation":{"fr":"","en":"The carrying amount includes assets directly attributable or allocated on a reasonable and consistent basis, and excludes liabilities with an exception (IAS 36, para. 76). The CGU must include all the assets that generate or are used to generate the cash flows, otherwise it may wrongly appear recoverable; goodwill and corporate assets follow specific rules (IAS 36, para. 77).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Leaving out an asset used to generate the cash flows used can make the CGU look recoverable when a loss exists.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Some contributing assets, such as goodwill or corporate assets, may not be allocable on a reasonable basis and follow specific rules.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only assets legally owned by the company operating the CGU can be included.","es":""},"correct":false,"feedback":{"fr":"","en":"A shared asset held elsewhere in the group can be allocated on a reasonable and consistent basis.","es":""}},{"id":"D","text":{"fr":"","en":"All recognised liabilities relating to the CGU are deducted from its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Liabilities are excluded, unless the recoverable amount cannot be determined without them.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000098","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"LOGISTICS","tested_point":"CGU_CARRYING_AMOUNT_SYMMETRY_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"practical-adjustments"},"references":["IAS 36 §75","IAS 36 §76","IAS 36 §79"],"exercise":{"prompt":{"fr":"","en":"Case data: a carrier is testing its Lille hub (CGU). For convenience, its value in use includes the collection of existing trade receivables (EUR 400,000). Review the working note and spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"The carrying amount follows the perimeter of the recoverable amount (IAS 36, para. 75): an item included for practical reasons in value in use adjusts the carrying amount symmetrically (IAS 36, para. 79). Shared assets are allocated on a reasonable and consistent basis, and liabilities are excluded with an exception (IAS 36, para. 76).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The EUR 400,000 of receivables are not non-current assets: they stay outside the CGU's carrying amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"As their collection is included in value in use, the carrying amount must be increased by these receivables (IAS 36, para. 79).","es":""}},{"id":"S2","text":{"fr":"","en":"Trade payables are excluded from the carrying amount, as their payment is not included in value in use.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The shared sorting centre is allocated 35% to the hub, based on parcels handled, the same key as last year.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The loan that financed the hub is deducted from the carrying amount, since it relates to the CGU.","es":""},"erroneous":true,"correction":{"fr":"","en":"Recognised liabilities are excluded from the carrying amount unless the recoverable amount cannot be determined without them, which is not the case for a financing loan here (IAS 36, para. 76).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000099","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"MEDIA","tested_point":"PRACTICAL_ADJUSTMENT_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000011","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"practical-adjustments"},"references":["IAS 36 §79"],"exercise":{"prompt":{"fr":"","en":"Case data: the carrying amount of the assets of a 'Regional press' CGU is EUR 2,300,000. For convenience, its value in use includes the collection of subscriber receivables (EUR 250,000) and the payment of trade payables (EUR 110,000). Complete.","es":""},"explanation":{"fr":"","en":"When the recoverable amount takes into account, for practical reasons, assets or liabilities outside the CGU, the carrying amount is increased by those assets and decreased by those liabilities (IAS 36, para. 79): 2,300,000 + 250,000 − 110,000 = EUR 2,440,000.","es":""},"common_error":{"fr":"","en":"Adding the receivables but forgetting to deduct the payables (EUR 2,550,000).","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Carrying amount to compare with the recoverable amount: EUR {{ca}}. The receivables are {{receivables}} the carrying amount.","es":""},"blanks":[{"id":"ca","mode":"NUMBER","answer":2440000,"tolerance":0},{"id":"receivables","mode":"CHOICE","choices":[{"id":"ADDED","text":{"fr":"","en":"added to","es":""}},{"id":"DEDUCTED","text":{"fr":"","en":"deducted from","es":""}},{"id":"IGNORED","text":{"fr":"","en":"without effect on","es":""}}],"answer":"ADDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000100","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_SEGMENT_CEILING","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80"],"exercise":{"prompt":{"fr":"","en":"A group made up of three operating segments may allocate the goodwill of an acquisition to the whole group if its management monitors goodwill only at that level.","es":""},"explanation":{"fr":"","en":"False. Each unit or group of units to which goodwill is allocated cannot be larger than an operating segment as defined by IFRS 8, before aggregation (IAS 36, para. 80). The internal monitoring level cannot exceed that ceiling.","es":""},"common_error":{"fr":"","en":"Thinking that internal monitoring always prevails, whereas the operating segment is an absolute ceiling.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000101","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSUMER_GOODS","tested_point":"IAS21_LEVEL_VERSUS_TEST_LEVEL","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"ias21-level"},"references":["IAS 36 §80","IAS 36 §83"],"exercise":{"prompt":{"fr":"","en":"Case data: a consumer goods group has acquired five subsidiaries, three in the \"Central Europe\" operating segment and two in the \"Western Europe\" segment. For IAS 21, goodwill is tracked subsidiary by subsidiary, in each one's currency. For internal management, management only monitors goodwill at the \"Europe\" level, which combines the two segments. Synergies are expected within each segment. At what level is goodwill tested?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated to the lowest level of internal monitoring, never larger than an operating segment before aggregation (IAS 36, para. 80). Internal monitoring at the \"Europe\" level exceeds that ceiling: goodwill must therefore be allocated at most at the level of each segment. The finer tracking required by IAS 21 for exchange differences does not, on its own, require a subsidiary-by-subsidiary test (IAS 36, para. 83).","es":""},"common_error":{"fr":"","en":"Using the internal monitoring level without checking that it is not larger than an operating segment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Subsidiary by subsidiary, as for IAS 21","es":""},"correct":false,"feedback":{"fr":"","en":"The tracking required by IAS 21 does not require goodwill to be tested at that level (IAS 36, para. 83).","es":""}},{"id":"B","text":{"fr":"","en":"At the \"Europe\" level, since that is the internal monitoring level","es":""},"correct":false,"feedback":{"fr":"","en":"This level combines two operating segments: it exceeds the ceiling set by the standard (IAS 36, para. 80).","es":""}},{"id":"C","text":{"fr":"","en":"At most at the level of each operating segment, \"Central Europe\" and \"Western Europe\", before aggregation","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the level of the whole group, to simplify the test","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation level can never be larger than an operating segment (IAS 36, para. 80).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000102","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"APPLICATION","format":"FILL_BLANK","context":"SOFTWARE","tested_point":"ALLOCATION_DEADLINE_NON_CALENDAR_YEAR","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84","IAS 36 §85","IAS 36 §133"],"exercise":{"prompt":{"fr":"","en":"Case data: a software publisher has a 31 March year-end. It acquires a start-up on 1 July N. At 31 March N+1, the accounting for the combination is still provisional and goodwill has not been fully allocated. Complete.","es":""},"explanation":{"fr":"","en":"The acquisition year runs from 1 April N to 31 March N+1; the first annual period beginning after the acquisition date runs from 1 April N+1 to 31 March N+2: allocation must be completed before its end (IAS 36, para. 84). The deadline reflects the possibly provisional accounting under IFRS 3 (IAS 36, para. 85). At year-end, the unallocated amount and the reasons are disclosed (IAS 36, para. 133).","es":""},"common_error":{"fr":"","en":"Using twelve months after the acquisition (30 June N+1), which is the limit of the IFRS 3 measurement period and not the IAS 36 deadline.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The initial allocation must be completed before {{deadline}}. At 31 March N+1, the entity discloses {{disclosure}}.","es":""},"blanks":[{"id":"deadline","mode":"CHOICE","choices":[{"id":"JUNE_N1","text":{"fr":"","en":"30 June N+1","es":""}},{"id":"MARCH_N1","text":{"fr":"","en":"31 March N+1","es":""}},{"id":"MARCH_N2","text":{"fr":"","en":"31 March N+2","es":""}}],"answer":"MARCH_N2"},{"id":"disclosure","mode":"CHOICE","choices":[{"id":"AMOUNT_REASONS","text":{"fr":"","en":"the unallocated amount and the reasons","es":""}},{"id":"NOTHING","text":{"fr":"","en":"nothing, as there is no final amount","es":""}}],"answer":"AMOUNT_REASONS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000103","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"GOODWILL_ON_DISPOSAL_RELATIVE_VALUES","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Case data: the 'West Optics' CGU carries goodwill of EUR 1,200,000. It sells its sports eyewear operation for EUR 900,000. Value of the operation disposed of: EUR 900,000; value of the portion retained: EUR 2,700,000. Carrying amount of the assets disposed of, excluding goodwill: EUR 700,000 (no liabilities transferred). No other method is more appropriate. Calculate (enter a loss as a negative number).","es":""},"explanation":{"fr":"","en":"Goodwill disposed of = 1,200,000 × 900,000 ÷ (900,000 + 2,700,000) = 1,200,000 × 25% = EUR 300,000, included in the carrying amount of the operation disposed of (IAS 36, para. 86). Result = 900,000 − (700,000 + 300,000) = − EUR 100,000 (loss). Remaining goodwill: 1,200,000 − 300,000 = EUR 900,000.","es":""},"common_error":{"fr":"","en":"Ignoring goodwill and showing a gain of EUR 200,000, or using 900,000 ÷ 2,700,000 (one third) instead of the share of the total (one quarter).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill of the CGU","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Disposal price","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Value of the operation disposed of","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Value of the portion retained","es":""},"value":"2700000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of assets disposed of (excluding goodwill)","es":""},"value":"700000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Goodwill disposed of","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Gain or loss on disposal","es":""},"answer":-100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Goodwill remaining in the CGU","es":""},"answer":900000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Goodwill remaining in the CGU","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill of the CGU","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill disposed of","es":""},"value":300000,"unit":"EUR"}],"result":900000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill disposed of = 1,200,000 × 900,000 ÷ (900,000 + 2,700,000) = 1,200,000 × 25% = EUR 300,000, included in the carrying amount of the operation disposed of (IAS 36, para. 86).","es":""},"references":["REF.IAS36.86"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000104","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"DISPOSAL_ENTRY_WITH_GOODWILL","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-entry"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Case data: a media group's 'Radio' CGU carries goodwill of EUR 1,000,000. It sells a local station for EUR 2,000,000 in cash. Value of the station: EUR 2,000,000; value of the portion retained: EUR 6,000,000. Carrying amount of the station's assets, excluding goodwill: EUR 1,500,000 (no liabilities transferred). Record the disposal entry.","es":""},"explanation":{"fr":"","en":"Goodwill disposed of = 1,000,000 × 2,000,000 ÷ (2,000,000 + 6,000,000) = EUR 250,000, included in the carrying amount disposed of (IAS 36, para. 86). Gain = 2,000,000 − 1,500,000 − 250,000 = EUR 250,000. Total debits 2,000,000 = total credits 1,500,000 + 250,000 + 250,000. The disposal is not an impairment loss.","es":""},"common_error":{"fr":"","en":"Crediting a gain of EUR 500,000 without derecognising any goodwill, or taking the goodwill share to impairment loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"STATION_ASSETS","text":{"fr":"","en":"Assets of the station disposed of (carrying amount)","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"GAIN_ON_DISPOSAL","text":{"fr":"","en":"Gain on disposal","es":""}},{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}}],"lines":[{"id":"L1","account":"CASH","side":"DEBIT","amount":2000000,"given":["account","side","amount"]},{"id":"L2","account":"STATION_ASSETS","side":"CREDIT","amount":1500000},{"id":"L3","account":"GOODWILL","side":"CREDIT","amount":250000},{"id":"L4","account":"GAIN_ON_DISPOSAL","side":"CREDIT","amount":250000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000105","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"GOODWILL_REALLOCATION_REORGANISATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"reorganisation"},"references":["IAS 36 §87"],"exercise":{"prompt":{"fr":"","en":"Case data: an operator reorganises its reporting. The 'Business' CGU, which carries goodwill of EUR 900,000, is split into three units: 'Cloud' (value EUR 1,500,000), 'Networks' (value EUR 1,000,000) and 'Telephony' (value EUR 500,000). No other method is more appropriate. Calculate the goodwill reallocated to each unit.","es":""},"explanation":{"fr":"","en":"Total values: EUR 3,000,000. Reallocation on relative values (IAS 36, para. 87): 900,000 × 50% = 450,000; 900,000 × 33.33% = 300,000; 900,000 × 16.67% = EUR 150,000. The total stays EUR 900,000.","es":""},"common_error":{"fr":"","en":"Splitting goodwill equally (EUR 300,000 per unit) without regard to relative values.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill to reallocate","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Value of 'Cloud'","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Value of 'Networks'","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Value of 'Telephony'","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Goodwill of 'Cloud'","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Goodwill of 'Networks'","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Goodwill of 'Telephony'","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000106","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"HOSPITALITY","tested_point":"GOODWILL_ALLOCATION_LEVEL_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"example"},"references":["IAS 36 §80","IAS 36 §81","IAS 36 §82"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel group has two operating segments, 'Hotels Europe' and 'Hotels Asia'. Each hotel is a CGU. Management monitors goodwill by country. It acquires a French chain of 15 hotels. Which statements are correct?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated to the CGUs or groups of CGUs that benefit from the synergies, at the lowest level of internal monitoring, no larger than an operating segment (IAS 36, para. 80). A group of CGUs is allowed (IAS 36, para. 81) and no new reporting is required (IAS 36, para. 82).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The goodwill is allocated to the 'France' group of hotels, the lowest level of internal monitoring.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Allocation is to the CGUs expected to benefit from the synergies of the combination.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The goodwill may be tested at the level of both segments combined, to benefit from Asia's profitability.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of allocation cannot be larger than an operating segment.","es":""}},{"id":"D","text":{"fr":"","en":"The group must build hotel-by-hotel reporting so that it can test goodwill hotel by hotel.","es":""},"correct":false,"feedback":{"fr":"","en":"Testing at the internal monitoring level does not require a new reporting system, and goodwill may be allocated to a group of CGUs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000107","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION","IAS36.GOODWILL.ALLOCATION_TIMING","IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"GOODWILL_ALLOCATION_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"pitfalls"},"references":["IAS 36 §80","IAS 36 §84","IAS 36 §86","IAS 36 §133"],"exercise":{"prompt":{"fr":"","en":"Case data: a laboratory with a 31 December year-end acquired a generics manufacturer on 1 October N. Review the memo on goodwill and spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"S1 respects the level of allocation (IAS 36, para. 80). S2 confuses the IFRS 3 measurement period with the IAS 36 deadline (IAS 36, para. 84). S3 omits the required disclosure (IAS 36, para. 133). S4 applies the disposal rule (IAS 36, para. 86).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Goodwill will be allocated to the 'Generics Europe' group of CGUs, the lowest level of internal monitoring, within a single operating segment.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"As the allocation is not completed at 31 December N, we have until 1 October N+1 to finish it.","es":""},"erroneous":true,"correction":{"fr":"","en":"The deadline is the end of the first annual period beginning after the acquisition date: before 31 December N+1 (IAS 36, para. 84).","es":""}},{"id":"S3","text":{"fr":"","en":"No disclosure is required at 31 December N on the goodwill not yet allocated.","es":""},"erroneous":true,"correction":{"fr":"","en":"The entity discloses the unallocated amount and the reasons why it remains unallocated (IAS 36, para. 133).","es":""}},{"id":"S4","text":{"fr":"","en":"If the vaccines range is sold in N+2, the share of goodwill derecognised will be measured on relative values, unless a more appropriate method exists.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000108","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION","IAS36.GOODWILL.ALLOCATION_TIMING","IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"SOFTWARE","tested_point":"GOODWILL_LIFECYCLE_CASE","difficulty":"EXPERT","estimated_time_s":540,"lesson_id":"LS.IAS36.000012","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"judgment"},"references":["IAS 36 §80","IAS 36 §84","IAS 36 §86","IAS 36 §87"],"exercise":{"prompt":{"fr":"","en":"Follow the goodwill from Nexa's acquisition of CloudPay, from initial allocation to the disposal of an operation.","es":""},"explanation":{"fr":"","en":"Summary: allocation to 'Payments' and 'Banking software' (IAS 36, para. 80), completed before 31 December N+1 (IAS 36, para. 84); in N+2, EUR 360,000 of goodwill leaves with 'Kiosks' and the disposal gives a loss of EUR 260,000 (IAS 36, para. 86); any later reorganisation follows relative values (IAS 36, para. 87).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Nexa, a financial software publisher (31 December year-end), acquires CloudPay on 1 April N. Goodwill: EUR 4,000,000. Synergies are expected in two Nexa units, 'Payments' and 'Banking software', each a group of CGUs monitored by management; both belong to the 'Fintech' operating segment (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Later events (case data)","es":""},"body":{"fr":"","en":"At 31 December N, the provisional amounts of the combination are not finalised and goodwill has not yet been allocated. In N+1, EUR 2,400,000 is allocated to 'Payments' and EUR 1,600,000 to 'Banking software'. In N+2, 'Payments' sells its 'Kiosks' operation for EUR 600,000; value of the operation disposed of EUR 600,000, value of the portion retained EUR 3,400,000; carrying amount of the assets disposed of, excluding goodwill, EUR 500,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"At what level must goodwill be allocated?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated to the acquirer's CGUs or groups of CGUs expected to benefit from the synergies, at the lowest level of internal monitoring, no larger than an operating segment (IAS 36, para. 80).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"'Payments' and 'Banking software', monitored groups of CGUs benefiting from the synergies","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 'Fintech' segment as a whole","es":""},"correct":false,"feedback":{"fr":"","en":"The segment is a ceiling; goodwill goes to the lowest level of internal monitoring.","es":""}},{"id":"C","text":{"fr":"","en":"CloudPay alone, since the goodwill arises from its acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill follows the acquirer's CGUs expected to benefit from the synergies.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Does the allocation made in N+1 meet the deadline?","es":""},"explanation":{"fr":"","en":"The initial allocation must be completed before the end of the first annual period beginning after the acquisition date, i.e. before 31 December N+1 (IAS 36, para. 84).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, if it is completed before 31 December N+1","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only if it is completed before 1 April N+1","es":""},"correct":false,"feedback":{"fr":"","en":"Twelve months after the acquisition is not the IAS 36 deadline.","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Calculate the effects of the 'Kiosks' disposal in N+2 (enter a loss as a negative number).","es":""},"explanation":{"fr":"","en":"Goodwill disposed of = 2,400,000 × 600,000 ÷ (600,000 + 3,400,000) = 2,400,000 × 15% = EUR 360,000 (IAS 36, para. 86). Result = 600,000 − (500,000 + 360,000) = − EUR 260,000 (loss).","es":""},"common_error":{"fr":"","en":"Derecognising all or none of the goodwill: the portion disposed of is measured on the relative values of the operation sold and the part retained.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill of 'Payments'","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Disposal price","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Goodwill disposed of","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Gain or loss on disposal","es":""},"answer":-260000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Goodwill disposed of","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill of 'Payments'","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Disposal price","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"value of the portion retained EUR 3,400,000","es":""},"value":3400000,"unit":"EUR"}],"result":360000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill disposed of = 2,400,000 × 600,000 ÷ (600,000 + 3,400,000) = 2,400,000 × 15% = EUR 360,000 (IAS 36, para. 86).","es":""},"references":["REF.IAS36.86"]}},{"prompt":{"fr":"","en":"If, in N+3, Nexa reorganises 'Payments' into two new units, the remaining goodwill is reallocated on relative values, unless a more appropriate method exists.","es":""},"explanation":{"fr":"","en":"True. When a reorganisation changes the composition of CGUs, goodwill is reallocated using a relative value approach similar to that for disposals, unless a more appropriate method exists (IAS 36, para. 87).","es":""},"common_error":{"fr":"","en":"Leaving goodwill in the old CGU after a reorganisation: it is reallocated on relative values, unless another method is more appropriate.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000109","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_CGU_ANNUAL_TEST_WITHOUT_INDICATION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §10","IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"A CGU to which goodwill has been allocated does not need to be tested in a year in which no indication of impairment has arisen.","es":""},"explanation":{"fr":"","en":"A CGU carrying goodwill is tested every year and, in addition, whenever there is an indication (IAS 36, para. 90); acquired goodwill is among the assets tested annually even without an indication (IAS 36, para. 10).","es":""},"common_error":{"fr":"","en":"Applying to goodwill the 'no indication, no test' logic that applies to most other assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000110","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"GOODWILL_TEST_TIMING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90","IAS 36 §96"],"exercise":{"prompt":{"fr":"","en":"A retail chain has a 31 December year-end. It tests the 'Western stores' CGU every 31 March and the 'E-commerce' CGU every 31 October. For year N, the CFO proposes testing both CGUs at 31 December N, when the budgets are available, and then returning to the usual dates in N+1. What do you think?","es":""},"explanation":{"fr":"","en":"The annual test of a CGU carrying goodwill may be performed at any time during the year provided it is at the same time every year; different CGUs may be tested at different times (IAS 36, para. 96). A one-off change of date for convenience does not comply. An indication arising between two dates would, however, require an additional test (IAS 36, para. 90).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal breaches the standard; the annual test takes place at the same time every year, and different dates per CGU are allowed","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The proposal is mandatory; all CGUs must be tested at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test may take place at any time during the year, and different CGUs may be tested at different times.","es":""}},{"id":"C","text":{"fr":"","en":"The proposal is acceptable, because the test date can be chosen freely every year","es":""},"correct":false,"feedback":{"fr":"","en":"The date is free initially, but it must then be the same every year.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000111","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"TELECOM","tested_point":"REUSE_PRIOR_DETAILED_CALCULATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"reuse-previous-calculation"},"references":["IAS 36 §99"],"exercise":{"prompt":{"fr":"","en":"A telecom operator wants to reuse, for the year N test of its 'Southern Fibre' CGU, the detailed N−1 calculation, which showed a recoverable amount 35% above the carrying amount. Which circumstances prevent this reuse? (several answers)","es":""},"explanation":{"fr":"","en":"Reuse requires three cumulative conditions: composition not significantly changed, substantial margin at the time of the calculation, and a remote likelihood, in the light of events, that the current recoverable amount is below the carrying amount (IAS 36, para. 99). Acquiring a network changes the composition (A); the regulatory price cut makes a shortfall more than remote (B).","es":""},"common_error":{"fr":"","en":"Considering that a comfortable margin last year is enough, without examining the other two conditions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"During the year, the CGU absorbed a competitor's network, increasing its assets by 40%","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The regulator has announced a sharp and lasting cut in wholesale prices, making a shortfall plausible","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The N−1 calculation was performed by the internal team rather than an independent expert","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 sets no condition on who performed the calculation for it to be reused.","es":""}},{"id":"D","text":{"fr":"","en":"The market has been stable and the CGU's scope has not changed","es":""},"correct":false,"feedback":{"fr":"","en":"These circumstances on the contrary support reuse, if the 35% margin is judged substantial.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000112","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"GOODWILL_CGU_LOSS_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"example"},"references":["IAS 36 §18","IAS 36 §90","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A media group tests the 'Regional radio' CGU, to which goodwill has been allocated, at 30 June, its annual date. No individual asset shows an indication. Calculate the impairment loss and the remaining goodwill.","es":""},"explanation":{"fr":"","en":"Carrying amount including goodwill = 6,200,000 + 900,000 = 7,100,000. Recoverable amount = max (6,400,000; 6,650,000) = 6,650,000 (IAS 36, para. 18). Loss = 7,100,000 − 6,650,000 = 450,000 (IAS 36, para. 90), charged first to goodwill (IAS 36, para. 104); remaining goodwill = 900,000 − 450,000 = 450,000, the other assets being unaffected.","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with the assets excluding goodwill only (6,200,000) and concluding there is no loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the CGU's assets (excluding goodwill)","es":""},"value":"6200000","unit":"EUR"},{"label":{"fr":"","en":"Allocated goodwill","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal of the CGU","es":""},"value":"6400000","unit":"EUR"},{"label":{"fr":"","en":"Value in use of the CGU","es":""},"value":"6650000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount including goodwill","es":""},"answer":7100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"answer":6650000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Goodwill after the test","es":""},"answer":450000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount including goodwill","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU's assets (excluding goodwill)","es":""},"value":6200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Allocated goodwill","es":""},"value":900000,"unit":"EUR"}],"result":7100000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount including goodwill","es":""},"value":7100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use of the CGU","es":""},"value":6650000,"unit":"EUR"}],"result":450000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Goodwill after the test","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Allocated goodwill","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Impairment loss","es":""},"value":450000,"unit":"EUR"}],"result":450000,"unit":"EUR"}],"references":["REF.IAS36.18","REF.IAS36.90","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000113","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"APPLICATION","format":"ORDERING","context":"AUTOMOTIVE","tested_point":"TESTING_ORDER_ASSET_CGU_GROUP","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §97","IAS 36 §98","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"An automotive supplier has allocated goodwill to the 'Europe' group of CGUs, which includes the 'Engines' CGU. A welding robot in the 'Engines' CGU is damaged (indication), and all the CGUs of the group are tested at the same time as the group. Put in order the steps concerning the robot, the 'Engines' CGU and the group.","es":""},"explanation":{"fr":"","en":"The asset affected by an indication is tested and its loss recognised before the CGU containing it (IAS 36, para. 98); CGUs tested at the same time as the group carrying the goodwill are tested before that group (IAS 36, para. 97). The other CGUs of the group, tested at the same time, are also dealt with before the group. The group's loss is then allocated first to goodwill (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Testing the goodwill group first: the affected asset, then the CGUs, are tested before the group.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Test the welding robot and recognise any loss","es":""}},{"id":"S2","text":{"fr":"","en":"Test the 'Engines' CGU with the robot's carrying amount already reduced","es":""}},{"id":"S3","text":{"fr":"","en":"Test the 'Europe' group, including goodwill, with the already reduced carrying amounts of its CGUs","es":""}},{"id":"S4","text":{"fr":"","en":"Allocate any loss of the group first to goodwill, then to the other assets pro rata","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000114","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER","IAS36.GOODWILL.TESTING"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"ENERGY","tested_point":"TESTING_ORDER_NUMERIC_EFFECT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"numeric-example-order"},"references":["IAS 36 §90","IAS 36 §98","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Deal with the test of the 'Hydro plant' CGU in the right order.","es":""},"explanation":{"fr":"","en":"The asset affected by an indication is tested and impaired before the CGU containing it (IAS 36, para. 98); the CGU is then tested including goodwill with the reduced carrying amount (IAS 36, para. 90), and its loss is charged first to goodwill (IAS 36, para. 104). Total losses: 150,000 + 200,000 = 350,000.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: an electricity producer has allocated goodwill of 300,000 to the 'Hydro plant' CGU. The CGU includes a turbine (carrying amount 800,000) and other assets (4,200,000). At 31 December N, a crack is detected on the turbine (indication); its own recoverable amount, determined from a purchase offer from another operator, is 650,000. The recoverable amount of the CGU is 4,950,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Apply the order required by IAS 36 and calculate the amounts.","es":""},"explanation":{"fr":"","en":"Turbine first (IAS 36, para. 98): 800,000 − 650,000 = 150,000. Then the CGU: 650,000 + 4,200,000 + 300,000 = 5,150,000; loss = 5,150,000 − 4,950,000 = 200,000, lower than goodwill, so charged entirely to it (IAS 36, paras. 90 and 104); remaining goodwill 100,000.","es":""},"common_error":{"fr":"","en":"Testing the CGU before the turbine, or spreading the loss pro rata without going through goodwill: the turbine first, then the CGU loss is charged to goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the turbine","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the turbine","es":""},"value":"650000","unit":"EUR"},{"label":{"fr":"","en":"Other assets of the CGU","es":""},"value":"4200000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"4950000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Loss on the turbine","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount of the CGU after that loss, including goodwill","es":""},"answer":5150000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"CGU loss charged to goodwill","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Goodwill after the test","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Loss on the turbine","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the turbine","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the turbine","es":""},"value":650000,"unit":"EUR"}],"result":150000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Carrying amount of the CGU after that loss, including goodwill","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount of the turbine","es":""},"value":650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Other assets of the CGU","es":""},"value":4200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Goodwill","es":""},"value":300000,"unit":"EUR"}],"result":5150000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"CGU loss charged to goodwill","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU after that loss, including goodwill","es":""},"value":5150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":4950000,"unit":"EUR"}],"result":200000,"unit":"EUR","rationale":{"fr":"","en":"loss = 5,150,000 − 4,950,000 = 200,000, lower than goodwill, so charged entirely to it (IAS 36, paras. 90 and 104)","es":""}}],"references":["REF.IAS36.90","REF.IAS36.98","REF.IAS36.104"]}},{"prompt":{"fr":"","en":"A team member tested the CGU before the turbine. What is the effect of the error?","es":""},"explanation":{"fr":"","en":"Testing the CGU first, 5,300,000 − 4,950,000 = 350,000: 300,000 on goodwill and 50,000 allocated pro rata (turbine 50,000 × 800 / 5,000 = 8,000; other assets 42,000). Then testing the turbine, 792,000 reduced to 650,000, i.e. a further 142,000. Total 492,000 instead of 350,000, and goodwill fully eliminated instead of 100,000 remaining. The order of paragraph 98 prevents this over-impairment (IAS 36, paras. 98 and 104).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, the order of testing makes no difference","es":""},"correct":false,"feedback":{"fr":"","en":"The order is required precisely because it changes the amount and location of the losses.","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill wrongly bears part of the loss relating to the turbine, and total losses are overstated","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The turbine is no longer impaired since the CGU has already been tested","es":""},"correct":false,"feedback":{"fr":"","en":"The turbine remains impaired by 150,000; it is the CGU's loss that is mismeasured.","es":""}}],"id":"P2","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000115","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"PHARMA","tested_point":"CGU_WITHOUT_ALLOCATED_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §81","IAS 36 §88"],"exercise":{"prompt":{"fr":"","en":"A laboratory has allocated the goodwill from an acquisition to the 'Generics' group of CGUs, without being able to allocate it on a non-arbitrary basis to the 'Tablets' CGU within that group. Fill in the blanks.","es":""},"explanation":{"fr":"","en":"When goodwill relates to a CGU but has not been allocated to it (the paragraph 81 situation), the CGU is tested when there is an indication by comparing its carrying amount excluding goodwill with its recoverable amount (IAS 36, para. 88). The goodwill is tested at the level of the 'Generics' group to which it is allocated.","es":""},"common_error":{"fr":"","en":"Arbitrarily attributing part of the goodwill to the CGU in order to test it every year.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The 'Tablets' CGU is tested {{when}}, by comparing its carrying amount {{basis}} with its recoverable amount.","es":""},"blanks":[{"id":"when","mode":"CHOICE","choices":[{"id":"INDICATION","text":{"fr":"","en":"whenever there is an indication of impairment","es":""}},{"id":"ANNUAL","text":{"fr":"","en":"every year, even without an indication","es":""}},{"id":"NEVER","text":{"fr":"","en":"never, since only the group is tested","es":""}}],"answer":"INDICATION"},{"id":"basis","mode":"CHOICE","choices":[{"id":"EXCLUDING","text":{"fr":"","en":"excluding goodwill","es":""}},{"id":"INCLUDING","text":{"fr":"","en":"plus a share of goodwill","es":""}}],"answer":"EXCLUDING"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000116","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"NCI_NOTIONAL_GROSS_UP","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-numeric-example"},"references":["IAS 36 §C4","IAS 36 §C8","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A software publisher holds 70% of a subsidiary that is a CGU on its own; the non-controlling interests were measured at their proportionate share of identifiable net assets. Teaching assumption: notional share obtained by simple proportion. Calculate the amounts of the test.","es":""},"explanation":{"fr":"","en":"Notional goodwill = 1,400,000 × 30 / 70 = 600,000; grossed-up carrying amount = 5,000,000 + 1,400,000 + 600,000 = 7,000,000 (IAS 36, para. C4). Loss = 7,000,000 − 6,200,000 = 800,000, lower than the grossed-up goodwill (2,000,000), so entirely on goodwill (IAS 36, para. 104). Only the part relating to recognised goodwill is recognised (IAS 36, para. C8): 800,000 × 1,400,000 / 2,000,000 = 560,000; the part relating to notional goodwill (800,000 × 600,000 / 2,000,000 = 240,000) is not. Recognised loss: 560,000; remaining goodwill 840,000.","es":""},"common_error":{"fr":"","en":"Comparing 6,200,000 with 6,400,000 (without gross-up) and recognising only 200,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Subsidiary's identifiable net assets (consolidated carrying amount)","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Recognised goodwill","es":""},"value":"1400000","unit":"EUR"},{"label":{"fr":"","en":"Parent's ownership interest","es":""},"value":"70","unit":"PERCENT"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"6200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Notional goodwill of the non-controlling interests","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Grossed-up carrying amount of the CGU","es":""},"answer":7000000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Impairment loss of the CGU (before split)","es":""},"answer":800000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Loss recognised on goodwill","es":""},"answer":560000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Grossed-up carrying amount of the CGU","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subsidiary's identifiable net assets (consolidated carrying amount)","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recognised goodwill","es":""},"value":1400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Notional goodwill of the non-controlling interests","es":""},"value":600000,"unit":"EUR"}],"result":7000000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Impairment loss of the CGU (before split)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Grossed-up carrying amount of the CGU","es":""},"value":7000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":6200000,"unit":"EUR"}],"result":800000,"unit":"EUR","rationale":{"fr":"","en":"Loss = 7,000,000 − 6,200,000 = 800,000, lower than the grossed-up goodwill (2,000,000), so entirely on goodwill (IAS 36, para. 104).","es":""}}],"references":["REF.IAS36.C4","REF.IAS36.C8","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000117","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"NCI_MEASUREMENT_BASIS_AND_GROSS_UP","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C1","IAS 36 §C4"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical group acquired 60% of a biotech and measured the non-controlling interests at fair value; the recognised goodwill therefore also reflects the non-controlling share. When testing the CGU formed by the biotech, what should be done with the goodwill?","es":""},"explanation":{"fr":"","en":"Goodwill includes the amount of non-controlling interests used in the combination (IAS 36, para. C1). The notional gross-up applies only when those interests are measured at the proportionate share of net assets, because recognised goodwill then represents only the parent's share (IAS 36, para. C4). Measured at fair value, their share is already in goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Gross it up notionally by 40 / 60","es":""},"correct":false,"feedback":{"fr":"","en":"The notional gross-up targets the case where non-controlling interests are measured at the proportionate share of net assets; here, their share is already in the recognised goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"Use the recognised goodwill as it is, with no gross-up","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Use only 60% of the recognised goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount covers 100% of the CGU's cash flows; reducing goodwill would distort the comparison.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000118","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","format":"MINI_CASE","context":"RETAIL","tested_point":"NCI_LOSS_EXCEEDING_GOODWILL","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-numeric-example"},"references":["IAS 36 §C4","IAS 36 §C5","IAS 36 §C6","IAS 36 §C8","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Perform the test of the subsidiary and record the loss.","es":""},"explanation":{"fr":"","en":"With non-controlling interests measured at the proportionate share of net assets, goodwill is notionally grossed up before the test (IAS 36, para. C4); the loss is charged first to the grossed-up goodwill and then to the identifiable assets (IAS 36, paras. C5 and 104); only the part relating to recognised goodwill is recognised (IAS 36, para. C8). Recognised loss: 1,800,000. Its attribution between the parent and the non-controlling interests follows the profit or loss basis (IAS 36, para. C6) combined with the case's teaching assumption on the goodwill loss: 1,440,000 for the parent and 360,000 for the non-controlling interests.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: parent M holds 60% of store chain F, which is a CGU on its own. At acquisition, M measured the non-controlling interests at their proportionate share of identifiable net assets; recognised goodwill is 900,000. At 31 December N, the consolidated carrying amount of F's identifiable net assets is 3,000,000 and the recoverable amount of the CGU is 2,100,000. Teaching assumptions: notional share obtained by simple proportion; no identifiable asset reaches its floor; the loss on recognised goodwill, which represents only M's share, is attributed entirely to the owners of M (point of interpretation to be documented).","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the loss and its allocation.","es":""},"explanation":{"fr":"","en":"Notional goodwill = 900,000 × 40 / 60 = 600,000; grossed-up carrying amount = 3,000,000 + 900,000 + 600,000 = 4,500,000 (IAS 36, para. C4); loss = 2,400,000. Grossed-up goodwill (1,500,000) is absorbed first, the remaining 900,000 goes to the identifiable assets pro rata (IAS 36, paras. C5 and 104). On goodwill, only the part relating to recognised goodwill (1,500,000 × 900 / 1,500 = 900,000) is recognised, the notional share (600,000) is not (IAS 36, para. C8); under the case assumption, this 900,000 loss is attributed to the parent. The loss on identifiable assets (900,000) is recognised in full and split on the profit or loss basis: 540,000 for the parent, 360,000 for the non-controlling interests (IAS 36, para. C6). Check: 2,400,000 × 40% = 960,000 − 600,000 not recognised = 360,000.","es":""},"common_error":{"fr":"","en":"Recognising the loss on the non-controlling interests' notional goodwill: only the part relating to recognised goodwill is recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Recognised goodwill (60%)","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"2100000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Grossed-up carrying amount","es":""},"answer":4500000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"CGU loss","es":""},"answer":2400000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Loss recognised on goodwill","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Loss recognised on identifiable assets","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Share of the recognised loss attributed to non-controlling interests (under the case assumptions)","es":""},"answer":360000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Record the loss in the consolidated financial statements.","es":""},"explanation":{"fr":"","en":"Recognised loss = 900,000 (goodwill) + 900,000 (identifiable assets) = 1,800,000; no entry for the 600,000 relating to notional goodwill (IAS 36, para. C8). Attributing the loss between parent (1,440,000) and non-controlling interests (360,000), established under the case assumptions, is part of the allocation of profit or loss, not an entry on the 'Non-controlling interests' account at this stage (IAS 36, para. C6).","es":""},"common_error":{"fr":"","en":"Posting an entry for the loss on notional goodwill or debiting non-controlling interests directly.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMPAIRMENT_GOODWILL","text":{"fr":"","en":"Accumulated impairment losses — goodwill","es":""}},{"id":"ACC_IMPAIRMENT_ASSETS","text":{"fr":"","en":"Accumulated impairment losses — F's identifiable assets","es":""}},{"id":"NCI","text":{"fr":"","en":"Non-controlling interests","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":1800000},{"id":"L2","account":"ACC_IMPAIRMENT_GOODWILL","side":"CREDIT","amount":900000},{"id":"L3","account":"ACC_IMPAIRMENT_ASSETS","side":"CREDIT","amount":900000}],"id":"P2","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000119","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"WHICH_CGUS_TESTED_ANNUALLY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000013","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §9","IAS 36 §88","IAS 36 §89","IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"A telecom group reviews its CGUs. Classify each one according to what triggers its test.","es":""},"explanation":{"fr":"","en":"A CGU carrying goodwill is tested every year and on indication (IAS 36, para. 90); so is a CGU including an indefinite-life intangible that can be tested only within it (IAS 36, para. 89). A CGU linked to goodwill allocated at a higher level is tested, excluding goodwill, only when there is an indication (IAS 36, para. 88), like an ordinary CGU, for which the assessment at each reporting date focuses on whether there is an indication (IAS 36, para. 9).","es":""},"common_error":{"fr":"","en":"Testing every year a CGU with no goodwill of its own because it belongs to a group carrying goodwill: excluding goodwill, it is tested only when there is an indicator.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ANNUAL","text":{"fr":"","en":"Tested every year (and on indication)","es":""}},{"id":"INDICATION_ONLY","text":{"fr":"","en":"Tested only when there is an indication","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The 'Mobile North' CGU to which goodwill has been allocated","es":""},"category":"ANNUAL"},{"id":"I2","text":{"fr":"","en":"The 'Cable East' CGU, with no goodwill allocated but part of a group of CGUs to which goodwill is allocated","es":""},"category":"INDICATION_ONLY"},{"id":"I3","text":{"fr":"","en":"The 'Satellite' CGU including a licence with an indefinite useful life that can be tested only as part of the CGU","es":""},"category":"ANNUAL"},{"id":"I4","text":{"fr":"","en":"The 'Shops' CGU, with neither goodwill nor indefinite-life intangibles","es":""},"category":"INDICATION_ONLY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000120","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CORPORATE_ASSET_DISPOSAL_EXCEPTION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §101"],"exercise":{"prompt":{"fr":"","en":"The recoverable amount of a head office building can be determined on its own when management has decided to dispose of it.","es":""},"explanation":{"fr":"","en":"Because it has no cash flows of its own, the recoverable amount of a corporate asset cannot be estimated on its own, unless management has decided to dispose of it; otherwise, the CGU or group of CGUs to which it belongs is tested (IAS 36, para. 101).","es":""},"common_error":{"fr":"","en":"Refusing any stand-alone estimate for a corporate asset: it becomes possible when management has decided to dispose of it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000121","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CORPORATE_ASSET_IDENTIFICATION","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"understand"},"references":["IAS 36 §6","IAS 36 §100"],"exercise":{"prompt":{"fr":"","en":"A DIY retailer operates three store networks, each forming a CGU. Classify its assets.","es":""},"explanation":{"fr":"","en":"Corporate assets contribute to the cash flows of several CGUs, do not generate independent cash inflows and their carrying amount cannot be fully attributed to one CGU (IAS 36, paras. 6 and 100). A store's fittings and trucks dedicated to a single network belong to the CGU they serve.","es":""},"common_error":{"fr":"","en":"Classifying an asset dedicated to one network as a corporate asset: it belongs to the CGU it serves; only assets shared by several CGUs are corporate assets.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CORPORATE","text":{"fr":"","en":"Corporate asset (serves several CGUs, no cash flows of its own)","es":""}},{"id":"CGU_ASSET","text":{"fr":"","en":"Asset belonging to one CGU","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Head office building housing the shared departments","es":""},"category":"CORPORATE"},{"id":"I2","text":{"fr":"","en":"Central inventory management system used by all three networks","es":""},"category":"CORPORATE"},{"id":"I3","text":{"fr":"","en":"Fittings of a store in the 'City centre' network","es":""},"category":"CGU_ASSET"},{"id":"I4","text":{"fr":"","en":"Delivery trucks used exclusively by the 'Superstores' network","es":""},"category":"CGU_ASSET"},{"id":"I5","text":{"fr":"","en":"In-house training centre for the sales staff of all three networks","es":""},"category":"CORPORATE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000122","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"CORPORATE_ASSET_DEPENDS_ON_STRUCTURE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"example"},"references":["IAS 36 §100","IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"A carmaker owns an 'Americas' regional head office that serves its two American plants (two CGUs) but none of the European plants. How should it be treated when testing the Mexico plant?","es":""},"explanation":{"fr":"","en":"The structure of the entity determines whether an asset is a corporate asset for a given CGU (IAS 36, para. 100). The regional office relates to the two American CGUs; to test the Mexico plant, the reasonably allocable portion is added to it, otherwise the group of the two American CGUs is tested (IAS 36, para. 102).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a corporate asset of the American CGUs only, a portion of which is allocated to the Mexico plant if a reasonable basis exists","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a corporate asset of all the group's CGUs, including the European ones","es":""},"correct":false,"feedback":{"fr":"","en":"Classification depends on structure; this office does not contribute to the European plants' cash flows.","es":""}},{"id":"C","text":{"fr":"","en":"As a separate CGU, tested on its own value in use","es":""},"correct":false,"feedback":{"fr":"","en":"A head office does not generate independent cash inflows; it is not a CGU.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000123","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"CORPORATE_ASSET_ALLOCATION_KEY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"numeric-example"},"references":["IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"An operator allocates its central IT platform (carrying amount 600,000) to its three CGUs pro rata to their carrying amounts (case assumption, considered reasonable and applied every year). Calculate each CGU's portion.","es":""},"explanation":{"fr":"","en":"Total carrying amounts = 5,000,000. Fixed = 600,000 × 1.5 / 5 = 180,000; Mobile = 600,000 × 2.5 / 5 = 300,000; Business = 600,000 × 1 / 5 = 120,000. The 'Mobile' CGU is tested including its portion: 2,500,000 + 300,000 = 2,800,000 (IAS 36, para. 102). The carrying amount key is a choice made for the case, not a method imposed by IAS 36.","es":""},"common_error":{"fr":"","en":"Testing the CGU without its share of the platform: the carrying amount tested includes the allocated share of the corporate asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"IT platform","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the 'Fixed' CGU","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the 'Mobile' CGU","es":""},"value":"2500000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the 'Business' CGU","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"The 'Fixed' portion","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"The 'Mobile' portion","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"The 'Business' portion","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount to be tested for the 'Mobile' CGU","es":""},"answer":2800000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"The 'Business' portion","es":""},"expression":"a * 1 / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"IT platform","es":""},"value":600000,"unit":"EUR"}],"result":120000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Carrying amount to be tested for the 'Mobile' CGU","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the 'Mobile' CGU","es":""},"value":2500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The 'Mobile' portion","es":""},"value":300000,"unit":"EUR"}],"result":2800000,"unit":"EUR"}],"references":["REF.IAS36.102"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000124","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"CORPORATE_ASSET_WEIGHTED_ALLOCATION_AND_LOSS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"numeric-example"},"references":["IAS 36 §102","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A laboratory owns a research centre (carrying amount 800,000) that serves three CGUs with no goodwill. Case assumption (judgement): the centre is allocated pro rata to the CGUs' carrying amounts weighted by their remaining useful lives. The recoverable amount of CGU Y is 1,170,000. Calculate the allocation, then Y's loss and its allocation (no floor reached).","es":""},"explanation":{"fr":"","en":"Weightings: X 2,000,000 × 5 = 10,000,000; Y 1,000,000 × 15 = 15,000,000; Z 3,000,000 × 5 = 15,000,000; total 40,000,000. Portions: X 200,000, Y 300,000, Z 300,000. Test of Y including its portion (IAS 36, para. 102): 1,300,000 − 1,170,000 = 130,000. Pro rata allocation (IAS 36, para. 104): Y's assets 130,000 × 1,000 / 1,300 = 100,000; centre 130,000 × 300 / 1,300 = 30,000. A key based on carrying amounts alone would have given Y 800,000 × 1 / 6 ≈ 133,333: the choice of key changes the result, hence the need to justify it.","es":""},"common_error":{"fr":"","en":"Allocating the centre on carrying amounts alone when the case uses weighting by remaining life: the key chosen changes the result.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"CGU X — carrying amount (remaining life 5 years)","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"CGU Y — carrying amount (remaining life 15 years)","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"CGU Z — carrying amount (remaining life 5 years)","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Research centre","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Portion allocated to X","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Portion allocated to Y","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Portion allocated to Z","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Loss of CGU Y","es":""},"answer":130000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Part of that loss charged to the research centre","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000125","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"APPLICATION","format":"ORDERING","context":"ENERGY","tested_point":"TWO_STAGE_TEST_UNALLOCABLE_CORPORATE_ASSET","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §102","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"An energy company tests the 'Heat network' CGU. Its dispatching centre serves several CGUs but cannot be allocated to it on a reasonable basis. Put the steps in order.","es":""},"explanation":{"fr":"","en":"Where no reasonable allocation is possible, the CGU is first tested excluding the corporate asset and its loss recognised, then the smallest group of CGUs to which a portion can be allocated is identified and tested including that portion (IAS 36, para. 102). The group's loss is allocated under paragraph 104 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Testing the group directly without first testing the CGU excluding the corporate asset: the two steps are sequential.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify the corporate assets relating to the CGU","es":""}},{"id":"S2","text":{"fr":"","en":"Compare the carrying amount of the CGU, excluding the dispatching centre, with its recoverable amount and recognise any loss","es":""}},{"id":"S3","text":{"fr":"","en":"Identify the smallest group of CGUs, including the CGU, to which a portion of the centre can be reasonably allocated","es":""}},{"id":"S4","text":{"fr":"","en":"Compare the carrying amount of that group, including the portion of the centre, with its recoverable amount","es":""}},{"id":"S5","text":{"fr":"","en":"Allocate any group loss pro rata to the carrying amounts of its assets, including the centre","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000126","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"CALCULATION","format":"MINI_CASE","context":"SOFTWARE","tested_point":"SMALLEST_GROUP_TEST_NUMERIC","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"numeric-example-group"},"references":["IAS 36 §102","IAS 36 §104","IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"Perform the two-stage test and record the group loss.","es":""},"explanation":{"fr":"","en":"Without a reasonable allocation, each CGU is first tested without the corporate asset, then the smallest group of CGUs is tested with it (IAS 36, para. 102); the group's loss is allocated pro rata to carrying amounts, including the corporate asset (IAS 36, para. 104).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a software publisher operates two CGUs, 'Licences' (K) and 'Subscriptions' (L). A data centre (carrying amount 500,000) serves both, but no reasonable basis allows it to be split between them. Carrying amounts excluding the centre: K 1,400,000; L 1,000,000. Recoverable amounts: K 1,500,000; L 900,000; group {K + L} 2,380,000. Teaching assumption: no asset reaches its individual floor.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the amounts for both stages of the test.","es":""},"explanation":{"fr":"","en":"Stage 1: K 1,400,000 < 1,500,000, no loss; L 1,000,000 − 900,000 = 100,000. Stage 2: 1,400,000 + 900,000 + 500,000 = 2,800,000; loss = 2,800,000 − 2,380,000 = 420,000 (IAS 36, para. 102). Pro rata (IAS 36, para. 104): K 420,000 × 1,400 / 2,800 = 210,000; L 420,000 × 900 / 2,800 = 135,000; centre 420,000 × 500 / 2,800 = 75,000.","es":""},"common_error":{"fr":"","en":"Charging the whole group loss to the data centre: it is spread pro rata over the carrying amounts of all the group's assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Data centre","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the group","es":""},"value":"2380000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Loss of CGU L (stage 1)","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount of the group, including the centre (stage 2)","es":""},"answer":2800000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Group loss","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Part of the group loss charged to the data centre","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Group loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the group, including the centre (stage 2)","es":""},"value":2800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the group","es":""},"value":2380000,"unit":"EUR"}],"result":420000,"unit":"EUR"}],"references":["REF.IAS36.102","REF.IAS36.104"]}},{"prompt":{"fr":"","en":"Record the group loss (stage 2).","es":""},"explanation":{"fr":"","en":"The group loss reduces the carrying amount of each of its assets, including the data centre, pro rata (IAS 36, para. 104); no provision is set up, since the loss can be fully charged to the assets (IAS 36, para. 108). Total credits = 210,000 + 135,000 + 75,000 = 420,000.","es":""},"common_error":{"fr":"","en":"Setting up a provision for the group's loss: it reduces each asset's carrying amount, the centre included.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMP_K","text":{"fr":"","en":"Accumulated impairment losses — assets of CGU K","es":""}},{"id":"ACC_IMP_L","text":{"fr":"","en":"Accumulated impairment losses — assets of CGU L","es":""}},{"id":"ACC_IMP_DC","text":{"fr":"","en":"Accumulated impairment losses — data centre","es":""}},{"id":"PROVISION","text":{"fr":"","en":"Impairment provision","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":420000},{"id":"L2","account":"ACC_IMP_K","side":"CREDIT","amount":210000},{"id":"L3","account":"ACC_IMP_L","side":"CREDIT","amount":135000},{"id":"L4","account":"ACC_IMP_DC","side":"CREDIT","amount":75000}],"id":"P2","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000127","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"MEDIA","tested_point":"CORPORATE_ASSET_WORKPAPER_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"pitfalls"},"references":["IAS 36 §101","IAS 36 §102","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"You are reviewing a press group's working paper on its head office building, which serves its three CGUs (regional titles) and whose disposal is not being considered. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"A corporate asset is tested with the CGUs it serves, unless a disposal has been decided (IAS 36, para. 101); its portion is allocated on a reasonable and consistent basis (IAS 36, para. 102) and the loss is allocated pro rata to all the assets (IAS 36, para. 104).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"As a property valuation put the head office below its carrying amount, we recognised a loss on the head office alone.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without a decision to dispose of it, the head office's recoverable amount is not estimated on its own; the CGUs (or group) to which it belongs are tested (IAS 36, para. 101).","es":""}},{"id":"S2","text":{"fr":"","en":"A portion of the head office was added to the carrying amount of each CGU, based on the floor space used by its teams.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The loss of the 'North' CGU was charged entirely to the head office portion, to protect the editorial assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"The loss is allocated pro rata to the carrying amounts of all the CGU's assets, including the head office portion (IAS 36, para. 104).","es":""}},{"id":"S4","text":{"fr":"","en":"This year, the key was changed from floor space to revenue, because it reduces the loss of the 'North' CGU.","es":""},"erroneous":true,"correction":{"fr":"","en":"The allocation basis must be reasonable and applied consistently (IAS 36, para. 102); changing it to reduce a loss cannot be justified.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000128","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"CORPORATE_ASSET_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"entry"},"references":["IAS 36 §102","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A car dealer group tests the 'Southern dealerships' CGU (no goodwill). Carrying amount of its assets: 2,000,000; head office portion allocated on a reasonable basis: 600,000; recoverable amount of the CGU: 2,340,000. No floor is reached. Record the loss.","es":""},"explanation":{"fr":"","en":"Carrying amount including the portion = 2,600,000; loss = 2,600,000 − 2,340,000 = 260,000 (IAS 36, para. 102). Pro rata (IAS 36, para. 104): CGU assets 260,000 × 2,000 / 2,600 = 200,000; head office 260,000 × 600 / 2,600 = 60,000. Assets at cost: loss in profit or loss.","es":""},"common_error":{"fr":"","en":"Charging the 260,000 to the head office alone, or forgetting the head office portion: a CGU tested without its portion (2,000,000 < 2,340,000) would not appear impaired.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMP_CGU","text":{"fr":"","en":"Accumulated impairment losses — assets of the CGU","es":""}},{"id":"ACC_IMP_HQ","text":{"fr":"","en":"Accumulated impairment losses — head office building","es":""}},{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":260000},{"id":"L2","account":"ACC_IMP_CGU","side":"CREDIT","amount":200000},{"id":"L3","account":"ACC_IMP_HQ","side":"CREDIT","amount":60000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000129","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"CHOICE_OF_ALLOCATION_KEY","difficulty":"EXPERT","estimated_time_s":120,"lesson_id":"LS.IAS36.000014","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"judgment"},"references":["IAS 36 §100","IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"An operator must allocate its network operations centre to four CGUs. Four keys are proposed. Which is the most defensible?","es":""},"explanation":{"fr":"","en":"The portion of a corporate asset must be capable of being allocated reasonably and consistently (IAS 36, para. 102); a key based on each CGU's actual use of the centre, documented and stable, reflects how the asset serves the CGUs (IAS 36, para. 100). IAS 36 does not impose a particular key; the choice is a matter of judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The number of network elements monitored per CGU, documented and applied every year","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Full allocation to the most profitable CGU, which has the largest headroom","es":""},"correct":false,"feedback":{"fr":"","en":"The centre serves all four CGUs; allocating it where it creates no loss is neither reasonable nor representative.","es":""}},{"id":"C","text":{"fr":"","en":"The key that, each year, minimises the group's total loss","es":""},"correct":false,"feedback":{"fr":"","en":"A changing, result-driven key is not consistent.","es":""}},{"id":"D","text":{"fr":"","en":"No allocation, with the centre left out of every test","es":""},"correct":false,"feedback":{"fr":"","en":"Even if no allocation is possible, the centre is tested with the smallest group of CGUs to which it can be allocated.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000130","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_FIRST","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"When a CGU carrying goodwill is impaired, the loss first reduces goodwill, before affecting the other assets of the CGU.","es":""},"explanation":{"fr":"","en":"A CGU's loss is charged first to the allocated goodwill, then to the other assets pro rata on the basis of their carrying amounts (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Spreading the loss pro rata including goodwill: goodwill absorbs the loss first.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000131","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"ALLOCATION_SEQUENCE","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"how"},"references":["IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps for allocating an impairment loss within a CGU.","es":""},"explanation":{"fr":"","en":"The CGU's loss is charged first to goodwill, then to the other assets pro rata (IAS 36, para. 104), subject to each asset's floor, with the blocked part reallocated pro rata to the other assets (IAS 36, para. 105).","es":""},"common_error":{"fr":"","en":"Forgetting the floors or leaving the blocked portion unallocated: it is reallocated to the other assets pro rata.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Calculate the CGU's loss (carrying amount less recoverable amount)","es":""}},{"id":"S2","text":{"fr":"","en":"Charge the loss to goodwill until it is exhausted","es":""}},{"id":"S3","text":{"fr":"","en":"Allocate the remainder to the other assets pro rata on the basis of their carrying amounts","es":""}},{"id":"S4","text":{"fr":"","en":"Check that no asset falls below its floor","es":""}},{"id":"S5","text":{"fr":"","en":"Reallocate the part blocked by a floor to the other assets","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000132","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"PRO_RATA_AFTER_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"example"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A regional operator tests its 'Rural network' CGU. No asset reaches its floor (case data). Allocate the loss.","es":""},"explanation":{"fr":"","en":"Carrying amount = 150,000 + 900,000 + 300,000 = 1,350,000; loss = 1,350,000 − 1,050,000 = 300,000. Goodwill absorbed: 150,000; remainder of 150,000 pro rata over 1,200,000 (IAS 36, para. 104): equipment 150,000 × 900 / 1,200 = 112,500; vehicles 150,000 × 300 / 1,200 = 37,500. Equipment after the test: 900,000 − 112,500 = 787,500.","es":""},"common_error":{"fr":"","en":"Spreading the 300,000 pro rata over all three assets including goodwill (equipment 200,000), instead of absorbing goodwill first.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Network equipment","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Service vehicles","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"1050000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"CGU loss","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Loss charged to network equipment","es":""},"answer":112500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Loss charged to vehicles","es":""},"answer":37500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount of the equipment after the test","es":""},"answer":787500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"CGU loss","es":""},"expression":"(a + b + c) - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Network equipment","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Service vehicles","es":""},"value":300000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":1050000,"unit":"EUR"}],"result":300000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Carrying amount of the equipment after the test","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Network equipment","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss charged to network equipment","es":""},"value":112500,"unit":"EUR"}],"result":787500,"unit":"EUR"}],"references":["REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000133","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"FLOOR_AND_REALLOCATION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"numeric-example"},"references":["IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"A hypermarket forms a CGU. Only the building has a measurable fair value less costs of disposal (950,000); the other assets have no floor of their own other than zero. Allocate the loss.","es":""},"explanation":{"fr":"","en":"Loss = 2,100,000 − 1,600,000 = 500,000; goodwill 100,000, remainder 400,000 (IAS 36, para. 104). Pro rata over 2,000,000: building 200,000, fittings 120,000, IT 80,000. The building would fall to 800,000 < 950,000: loss limited to 50,000, 150,000 reallocated (IAS 36, para. 105) pro rata 600 / 400: fittings + 90,000, IT + 60,000. Totals: building 50,000, fittings 210,000, IT 140,000 (= 400,000). Final values: 950,000 + 390,000 + 260,000 = 1,600,000.","es":""},"common_error":{"fr":"","en":"Stopping the building at 950,000 without reallocating the 150,000, which understates the recognised loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Building","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Fittings","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"IT equipment","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"1600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Remaining loss after goodwill","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Loss finally charged to the building","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount reallocated","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Total loss charged to the fittings","es":""},"answer":210000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Total loss charged to the IT equipment","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000134","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"CGU_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"entry"},"references":["IAS 36 §60","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"An operator's 'Rural network' CGU (assets at cost) bears a loss of 300,000, allocated as follows: goodwill 150,000, network equipment 112,500, vehicles 37,500. Record the entry.","es":""},"explanation":{"fr":"","en":"Each portion of the CGU's loss reduces the carrying amount of the asset that receives it and is treated as a loss on an individual asset (IAS 36, para. 104), recognised in profit or loss for assets at cost (IAS 36, para. 60). There is no overall provision for the CGU. Debit 300,000 = credits 150,000 + 112,500 + 37,500.","es":""},"common_error":{"fr":"","en":"Crediting a single provision for the CGU: each portion of the loss reduces the carrying amount of the asset that receives it.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMP_GOODWILL","text":{"fr":"","en":"Accumulated impairment losses — goodwill","es":""}},{"id":"ACC_IMP_EQUIPMENT","text":{"fr":"","en":"Accumulated impairment losses — network equipment","es":""}},{"id":"ACC_IMP_VEHICLES","text":{"fr":"","en":"Accumulated impairment losses — vehicles","es":""}},{"id":"PROVISION","text":{"fr":"","en":"Provision for CGU impairment","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":300000},{"id":"L2","account":"ACC_IMP_GOODWILL","side":"CREDIT","amount":150000},{"id":"L3","account":"ACC_IMP_EQUIPMENT","side":"CREDIT","amount":112500},{"id":"L4","account":"ACC_IMP_VEHICLES","side":"CREDIT","amount":37500}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000135","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"FLOOR_DEFINITION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"floor-rule"},"references":["IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"Case data: a CGU without goodwill suffers an impairment loss. It includes a custom-built machine with a carrying amount of 200,000: as there is no market, its fair value less costs of disposal cannot be measured, and its value in use cannot be determined on its own. The pro rata allocation gives it 60,000 of the loss. What loss is allocated to the machine?","es":""},"explanation":{"fr":"","en":"A CGU loss is allocated to its assets pro rata to their carrying amounts (IAS 36, para. 104), without going below the highest of fair value less costs of disposal (if measurable), value in use (if determinable) and zero (IAS 36, para. 105). Here, only the zero limit applies: 200,000 - 60,000 = 140,000 remains positive, so the 60,000 share is allocated in full.","es":""},"common_error":{"fr":"","en":"Believing that an asset with no recoverable amount of its own escapes the allocation, or inventing a floor that the data do not allow to be calculated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"60,000, its pro rata share","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None, as the machine has no recoverable amount of its own","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of an individual recoverable amount does not exempt the asset: the CGU loss is allocated pro rata to its assets.","es":""}},{"id":"C","text":{"fr":"","en":"30,000, half of the share, for lack of a reliable measurement","es":""},"correct":false,"feedback":{"fr":"","en":"There is no such rule: only a measurable floor limits the allocation.","es":""}},{"id":"D","text":{"fr":"","en":"60,000, but the part exceeding the machine's fair value is shifted to the other assets","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value less costs of disposal cannot be measured: it cannot act as a floor. Nothing is shifted to the other assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000136","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"ENERGY","tested_point":"FLOOR_WITH_VALUE_IN_USE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"floor-rule"},"references":["IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"An electrical substation in a CGU exceptionally has a determinable value in use (case data). Fill in the blanks.","es":""},"explanation":{"fr":"","en":"Floor = max (280,000; 300,000; 0) = 300,000. Maximum loss = 340,000 − 300,000 = 40,000; remainder = 100,000 − 40,000 = 60,000, allocated pro rata to the other assets (IAS 36, para. 105).","es":""},"common_error":{"fr":"","en":"Using net fair value (280,000) as the floor and charging a loss of 60,000.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Carrying amount 340,000; fair value less costs of disposal 280,000; value in use 300,000. The pro rata would allocate a loss of 100,000 to it. Its floor is {{floor}}, the loss charged is {{loss}} and the amount to be reallocated is {{excess}}.","es":""},"blanks":[{"id":"floor","mode":"NUMBER","answer":300000,"tolerance":0},{"id":"loss","mode":"NUMBER","answer":40000,"tolerance":0},{"id":"excess","mode":"NUMBER","answer":60000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000137","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDIA","tested_point":"ALLOCATION_WORKPAPER_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"pitfalls"},"references":["IAS 36 §61","IAS 36 §104","IAS 36 §105","IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the allocation table for the loss of a broadcasting group's 'Studios' CGU. Spot the incorrect steps.","es":""},"explanation":{"fr":"","en":"Goodwill first then pro rata (IAS 36, para. 104), floor per asset and reallocation (IAS 36, para. 105), no liability unless another standard requires one (IAS 36, para. 108), and each portion follows the treatment of the asset that receives it (IAS 36, paras. 61 and 104).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The 1,200,000 loss was allocated pro rata to the carrying amounts of all the assets, including goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"Goodwill absorbs the loss first; only the remainder is allocated pro rata to the other assets (IAS 36, para. 104).","es":""}},{"id":"S2","text":{"fr":"","en":"The film set was stopped at its fair value less costs of disposal, which was higher than the value resulting from the pro rata.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The part of the loss blocked by the set's floor was recognised as a provision.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is reallocated pro rata to the other assets (IAS 36, para. 105); a liability is recognised for a remainder only if another standard requires it (IAS 36, para. 108).","es":""}},{"id":"S4","text":{"fr":"","en":"The portion charged to the revalued building, lower than its revaluation surplus, was recognised in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"For a revalued asset, the loss is recognised in other comprehensive income to the extent of that asset's revaluation surplus (IAS 36, paras. 61 and 104).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000138","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","format":"MINI_CASE","context":"PHARMA","tested_point":"FULL_ALLOCATION_WITH_FLOOR_AND_ENTRY","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"numeric-example"},"references":["IAS 36 §60","IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"Allocate the loss of the 'Lyon production site' CGU and record it.","es":""},"explanation":{"fr":"","en":"Goodwill first, then pro rata to carrying amounts (IAS 36, para. 104); floor for the building at its fair value less costs of disposal and reallocation of the remainder to the other assets (IAS 36, para. 105); loss in profit or loss for assets at cost (IAS 36, para. 60).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: at 31 December N, a pharmaceutical laboratory tests the 'Lyon production site' CGU, all of whose assets are measured at cost. Carrying amounts: goodwill 300,000; laboratory building 1,500,000; production equipment 1,200,000; process patents 300,000. A recent valuation sets the building's fair value less costs of disposal at 1,400,000; the equipment and patents have neither a measurable net fair value nor a value in use determinable on its own. The recoverable amount of the CGU is 2,400,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the allocation.","es":""},"explanation":{"fr":"","en":"Loss = 3,300,000 − 2,400,000 = 900,000; goodwill 300,000; remainder 600,000 over 3,000,000 (IAS 36, para. 104): building 300,000, equipment 240,000, patents 60,000. The building would fall to 1,200,000 < 1,400,000: loss limited to 100,000; 200,000 reallocated pro rata 1,200 / 300 (4 / 1): equipment + 160,000, patents + 40,000 (IAS 36, para. 105). Totals: equipment 400,000, patents 100,000. Check: 300,000 + 100,000 + 400,000 + 100,000 = 900,000; final values 1,400,000 + 800,000 + 200,000 = 2,400,000.","es":""},"common_error":{"fr":"","en":"Letting the building fall below its fair value less costs of disposal: the loss is capped at its floor and the excess reallocated to the other assets.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total carrying amount of the CGU","es":""},"value":"3300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"2400000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"CGU loss","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Loss charged to the building","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total loss charged to the equipment","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Total loss charged to the patents","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"CGU loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total carrying amount of the CGU","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":2400000,"unit":"EUR"}],"result":900000,"unit":"EUR"}],"references":["REF.IAS36.104","REF.IAS36.105"]}},{"prompt":{"fr":"","en":"Record the loss.","es":""},"explanation":{"fr":"","en":"As all the assets are at cost, the 900,000 loss is recognised in profit or loss (IAS 36, paras. 60 and 104); it is credited asset by asset according to the allocation. Debit 900,000 = credits 300,000 + 100,000 + 400,000 + 100,000.","es":""},"common_error":{"fr":"","en":"Crediting one impairment account for the CGU: the loss is credited asset by asset according to the allocation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"IMPAIRMENT_LOSS","text":{"fr":"","en":"Impairment loss (profit or loss)","es":""}},{"id":"ACC_IMP_GOODWILL","text":{"fr":"","en":"Accumulated impairment losses — goodwill","es":""}},{"id":"ACC_IMP_BUILDING","text":{"fr":"","en":"Accumulated impairment losses — building","es":""}},{"id":"ACC_IMP_EQUIPMENT","text":{"fr":"","en":"Accumulated impairment losses — equipment","es":""}},{"id":"ACC_IMP_PATENTS","text":{"fr":"","en":"Accumulated impairment losses — patents","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}}],"lines":[{"id":"L1","account":"IMPAIRMENT_LOSS","side":"DEBIT","amount":900000},{"id":"L2","account":"ACC_IMP_GOODWILL","side":"CREDIT","amount":300000},{"id":"L3","account":"ACC_IMP_BUILDING","side":"CREDIT","amount":100000},{"id":"L4","account":"ACC_IMP_EQUIPMENT","side":"CREDIT","amount":400000},{"id":"L5","account":"ACC_IMP_PATENTS","side":"CREDIT","amount":100000}],"id":"P2","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000139","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"AUTOMOTIVE","tested_point":"UNDETERMINABLE_RECOVERABLE_AMOUNT_RULES","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"undeterminable"},"references":["IAS 36 §106","IAS 36","IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"A specific stamping press is part of the 'Body shop' CGU; its recoverable amount cannot be determined on its own. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"For an asset whose recoverable amount is not determinable, a loss is recognised only if its carrying amount exceeds the higher of its net fair value and the result of the allocation, and none if the CGU is not impaired (IAS 36, para. 107). The allocation among assets is necessarily arbitrary (IAS 36, para. 106); a remainder gives rise to a liability only if another standard requires it (IAS 36, para. 108).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If the CGU is not impaired, no loss is recognised on the press, even if its net fair value is below its carrying amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"If the CGU is impaired, the press is not reduced below the higher of its net fair value and the result of the allocation","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The press must always be reduced to its net fair value, since it is the only measure available","es":""},"correct":false,"feedback":{"fr":"","en":"Net fair value only serves as a floor; the press follows the fate of the CGU.","es":""}},{"id":"D","text":{"fr":"","en":"Any part of the loss that cannot be charged to any asset is always recognised as a provision","es":""},"correct":false,"feedback":{"fr":"","en":"A liability is recognised only if another standard requires it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000140","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"NO_LOSS_WHEN_CGU_NOT_IMPAIRED","difficulty":"EXPERT","estimated_time_s":120,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"example-undeterminable"},"references":["IAS 36"],"exercise":{"prompt":{"fr":"","en":"A store chain has installed a custom checkout system (carrying amount 420,000), with no cash flows of its own, in its 'Eastern stores' CGU. A reseller would offer 90,000 for it. The CGU's recoverable amount (5,600,000) exceeds its carrying amount (5,100,000). The junior auditor proposes impairing the system by 330,000. What do you decide?","es":""},"explanation":{"fr":"","en":"If the recoverable amount of an asset cannot be determined and the CGU to which it belongs is not impaired, no loss is recognised on that asset (IAS 36, para. 107). The system produces its benefits through the CGU, whose recoverable amount covers its carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No loss on the system, as the CGU is not impaired","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A loss of 330,000, to bring the system down to its resale price","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset with no recoverable amount of its own, net fair value does not trigger a loss if the CGU covers its carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"A loss limited to the CGU's headroom, i.e. 500,000 allocated to all its assets","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU's positive headroom means precisely that there is no loss to allocate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000141","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"LOSS_ON_ASSET_WITHOUT_OWN_RECOVERABLE_AMOUNT","difficulty":"EXPERT","estimated_time_s":180,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"example-undeterminable"},"references":["IAS 36 §105","IAS 36"],"exercise":{"prompt":{"fr":"","en":"A press group's in-house printing plant is part of an impaired CGU; its recoverable amount cannot be determined on its own. Calculate the loss on the printing plant under two allocation assumptions.","es":""},"explanation":{"fr":"","en":"The loss is recognised if the carrying amount exceeds the higher of net fair value and the result of the allocation (IAS 36, para. 107). A: max (180,000; 210,000) = 210,000, loss 260,000 − 210,000 = 50,000. B: max (180,000; 150,000) = 180,000, loss 260,000 − 180,000 = 80,000; the 30,000 (180,000 − 150,000) that the printing plant cannot bear is reallocated to the other assets (IAS 36, para. 105).","es":""},"common_error":{"fr":"","en":"Using the allocated value when it is below fair value less costs of disposal: the floor is the higher of the two.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the printing plant","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Assumption A — value resulting from the allocation","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Assumption B — value resulting from the allocation","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Loss on the printing plant (assumption A)","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Loss on the printing plant (assumption B)","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Amount to be reallocated to the other assets (assumption B)","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Loss on the printing plant (assumption A)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the printing plant","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Assumption A — value resulting from the allocation","es":""},"value":210000,"unit":"EUR"}],"result":50000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Loss on the printing plant (assumption B)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the printing plant","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":180000,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"references":["REF.IAS36.105","REF.IAS36.107"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000142","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"ENERGY","tested_point":"NO_LIABILITY_FOR_UNALLOCATED_REMAINDER","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"undeterminable"},"references":["IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"When all the assets of a CGU have reached their floor and part of the loss remains unallocated, IAS 36 requires a provision to be recognised for that remainder.","es":""},"explanation":{"fr":"","en":"After allocation, a liability is recognised for the remainder only if another standard requires it (IAS 36, para. 108); IAS 36 itself does not create a provision.","es":""},"common_error":{"fr":"","en":"Providing for the unallocated remainder: IAS 36 creates no liability; only another standard could require one.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000143","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"AUTOMOTIVE","tested_point":"PRESENTATION_OF_ALLOCATED_PORTIONS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §60","IAS 36 §61","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The loss of the 'Foundry' CGU (520,000) has been allocated: goodwill 200,000; machinery at cost 275,000; revalued land 45,000, whose revaluation surplus amounts to 30,000. Classify each amount according to where it is recognised.","es":""},"explanation":{"fr":"","en":"The portions of a CGU's loss are treated as losses on individual assets (IAS 36, para. 104): in profit or loss for an asset at cost (IAS 36, para. 60); for a revalued asset, in other comprehensive income to the extent of its revaluation surplus, with any excess in profit or loss (IAS 36, para. 61). Total in profit or loss: 200,000 + 275,000 + 15,000 = 490,000; in other comprehensive income: 30,000.","es":""},"common_error":{"fr":"","en":"Taking the whole portion for the revalued land to profit or loss: it goes to OCI up to its revaluation surplus.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PROFIT_OR_LOSS","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"200,000 charged to goodwill","es":""},"category":"PROFIT_OR_LOSS"},{"id":"I2","text":{"fr":"","en":"275,000 charged to the machinery at cost","es":""},"category":"PROFIT_OR_LOSS"},{"id":"I3","text":{"fr":"","en":"30,000 of the land's portion, up to its revaluation surplus","es":""},"category":"OCI"},{"id":"I4","text":{"fr":"","en":"15,000 of the land's portion, beyond its revaluation surplus","es":""},"category":"PROFIT_OR_LOSS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000144","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"ALLOCATION_RULES_MAP","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000015","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"how"},"references":["IAS 36 §104","IAS 36 §105","IAS 36 §106","IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"Match each situation encountered when allocating a CGU's loss with the treatment set by IAS 36.","es":""},"explanation":{"fr":"","en":"Goodwill first (IAS 36, para. 104); floor and reallocation (IAS 36, para. 105); necessarily arbitrary allocation among assets that work together (IAS 36, para. 106); no liability for a remainder unless another standard requires one (IAS 36, para. 108).","es":""},"common_error":{"fr":"","en":"Providing for the remainder of a loss that cannot be allocated: a liability is recognised only if another standard requires it.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"The CGU carries goodwill","es":""}},{"id":"L2","text":{"fr":"","en":"The pro rata would take an asset below its net fair value","es":""}},{"id":"L3","text":{"fr":"","en":"The recoverable amount of each asset cannot be estimated","es":""}},{"id":"L4","text":{"fr":"","en":"Part of the loss can no longer be charged to any asset","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Charge the loss to goodwill before any other asset","es":""}},{"id":"R2","text":{"fr":"","en":"Stop the asset at its floor and reallocate the excess to the other assets","es":""}},{"id":"R3","text":{"fr":"","en":"Accept a conventional, necessarily arbitrary allocation among assets other than goodwill","es":""}},{"id":"R4","text":{"fr":"","en":"Recognise a liability only if another standard requires it","es":""}},{"id":"R5","text":{"fr":"","en":"Always recognise an impairment provision","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000145","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"REVERSAL_INDICATOR_SOURCES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §111","IAS 36 §112","IAS 36 §116","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"A stamping machine was impaired two years ago. Classify each fact of the year: external indicator of reversal, internal indicator of reversal, or a fact that is not an indicator of reversal.","es":""},"explanation":{"fr":"","en":"External indicators: observable increase in value, favourable change in the environment (here legal), lower rates; internal indicators: favourable change in use (including restructuring) and internal reporting better than expected (IAS 36, para. 111). The mere passage of time reflects no increase in service potential (IAS 36, para. 116); a rise in rates is an indicator of impairment, not of reversal (IAS 36, paras. 12 and 112).","es":""},"common_error":{"fr":"","en":"Classifying the rise in rates as an indicator of reversal: it is the opposite; a fall in rates is an indicator of reversal.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXTERNAL","text":{"fr":"","en":"External indicator of reversal","es":""}},{"id":"INTERNAL","text":{"fr":"","en":"Internal indicator of reversal","es":""}},{"id":"NOT_INDICATOR","text":{"fr":"","en":"Not an indicator of reversal","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Market interest rates fall markedly, reducing the discount rate used for value in use","es":""},"category":"EXTERNAL"},{"id":"I2","text":{"fr":"","en":"A new regulation requires parts that only this machine can produce","es":""},"category":"EXTERNAL"},{"id":"I3","text":{"fr":"","en":"Observable prices of similar machines on the second-hand market have risen sharply","es":""},"category":"EXTERNAL"},{"id":"I4","text":{"fr":"","en":"A restructuring of the workshop, funded this year, improves the machine's performance","es":""},"category":"INTERNAL"},{"id":"I5","text":{"fr":"","en":"Internal reporting has shown margins above budget for three quarters","es":""},"category":"INTERNAL"},{"id":"I6","text":{"fr":"","en":"The forecast cash flows, unchanged, are now one year closer","es":""},"category":"NOT_INDICATOR"},{"id":"I7","text":{"fr":"","en":"Market interest rates rise","es":""},"category":"NOT_INDICATOR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000146","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"NO_REVERSAL_FOR_UNWINDING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §114","IAS 36 §115","IAS 36 §116"],"exercise":{"prompt":{"fr":"","en":"Case data: a wind turbine impaired last year has a carrying amount of 2,000,000. Its value in use rises from 2,000,000 to 2,140,000. Production forecasts, prices and the discount rate are the same as in the last test; only the cash flows are one year closer. What does the entity do?","es":""},"explanation":{"fr":"","en":"A reversal requires a change in the estimates used for the recoverable amount (IAS 36, para. 114), that is, an increase in service potential (IAS 36, para. 115). Here the increase comes solely from unwinding: no reversal (IAS 36, para. 116).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises a reversal of 140,000","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount exceeds the carrying amount, but no estimate has changed: unwinding alone does not justify a reversal (IAS 36, para. 116).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises no reversal","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It recognises a reversal of 70,000, out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"A partial reversal 'out of prudence' does not exist: either the estimates have changed and the reversal is calculated, or they have not and there is no reversal (IAS 36, para. 114).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000147","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"CAPPED_REVERSAL_INDIVIDUAL_ASSET","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"numeric-example"},"references":["IAS 36 §59","IAS 36 §63","IAS 36 §117","IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"A press tool acquired at the start of N is measured at cost. Calculate the loss, the capped reversal and subsequent depreciation. Case assumptions: straight-line depreciation, nil residual value.","es":""},"explanation":{"fr":"","en":"End of N+2: carrying amount 900,000 − 3 × 100,000 = 600,000; loss 600,000 − 420,000 = 180,000 (IAS 36, para. 59). Revised depreciation: 420,000 / 6 = 70,000 (IAS 36, para. 63). End of N+4: 420,000 − 140,000 = 280,000. Without impairment: 900,000 − 5 × 100,000 = 400,000. Reversal = min(500,000; 400,000) − 280,000 = 120,000 (IAS 36, para. 117). Afterwards: 400,000 / 4 = 100,000 a year (IAS 36, para. 121).","es":""},"common_error":{"fr":"","en":"Taking the asset up to 500,000 (reversal of 220,000) and forgetting the cap of the amount without impairment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"9","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount at end of N+2","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount at end of N+4 (new contract, cash flows raised)","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Impairment loss at end of N+2","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual depreciation N+3 and N+4","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at end of N+4 before reversal","es":""},"answer":280000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount at end of N+4 without impairment (cap)","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Reversal recognised","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S6","label":{"fr":"","en":"Annual depreciation from N+5","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Annual depreciation N+3 and N+4","es":""},"expression":"a / 6","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount at end of N+2","es":""},"value":420000,"unit":"EUR"}],"result":70000,"unit":"EUR"},{"step":"S6","meaning":{"fr":"","en":"Annual depreciation from N+5","es":""},"expression":"a / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount at end of N+4 without impairment (cap)","es":""},"value":400000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"references":["REF.IAS36.59","REF.IAS36.63","REF.IAS36.117","REF.IAS36.121"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000148","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"REVERSAL_ENTRY_COST_MODEL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"entries"},"references":["IAS 36 §117","IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"Case data: relay antenna equipment, measured at cost and impaired three years ago, has a carrying amount of 315,000. A new roaming contract raises forecast cash flows: the recoverable amount is 450,000. Without the impairment, its carrying amount would now be 400,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Reversal = min(450,000; 400,000) − 315,000 = 85,000 (IAS 36, para. 117). For an asset at cost, it is recognised in profit or loss (IAS 36, para. 119): debit accumulated impairment losses, credit the reversal in profit or loss. The revaluation surplus only concerns revalued assets.","es":""},"common_error":{"fr":"","en":"Recording 135,000 (450,000 − 315,000) without applying the cap.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ACCUMULATED_IMPAIRMENT","text":{"fr":"","en":"Accumulated impairment losses – equipment","es":""}},{"id":"REVERSAL_PL","text":{"fr":"","en":"Reversal of impairment loss (profit or loss)","es":""}},{"id":"REVALUATION_SURPLUS_OCI","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense","es":""}}],"lines":[{"id":"L1","account":"ACCUMULATED_IMPAIRMENT","side":"DEBIT","amount":85000},{"id":"L2","account":"REVERSAL_PL","side":"CREDIT","amount":85000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000149","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EXCESS_ABOVE_CAP_NOT_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117","IAS 36 §118","IAS 16 §30"],"exercise":{"prompt":{"fr":"","en":"For an item of property, plant and equipment measured under the cost model, the part of the increase in recoverable amount that exceeds the reversal cap is recognised in profit or loss as a gain.","es":""},"explanation":{"fr":"","en":"False. Above the cap (carrying amount without impairment, net of depreciation: IAS 36, para. 117), the increase would be a revaluation governed by the applicable standard (IAS 36, para. 118). Under the cost model, the asset stays at cost less accumulated depreciation and impairment losses (IAS 16, para. 30): the excess is not recognised.","es":""},"common_error":{"fr":"","en":"Recognising as a gain the increase above the cap: for an asset at cost, that excess is not recognised.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000150","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"LOGISTICS","tested_point":"REVERSAL_REASONING_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"how-to-apply"},"references":["IAS 36 §110","IAS 36 §114","IAS 36 §116","IAS 36 §117","IAS 36 §119","IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"An accounting assistant summarises his analysis of the reversal of an impairment loss on a conveyor (cost model). Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"S1 complies (IAS 36, para. 110), as does S3 (IAS 36, para. 117) and S4 for an asset at cost (IAS 36, para. 119). S2 confuses a mechanical increase with a change in estimate (IAS 36, para. 116); S5 forgets to revise depreciation (IAS 36, para. 121).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"At the reporting date, I looked for any indication that the previous loss had decreased.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Value in use has increased because the cash flows are one year closer; I conclude there is a reversal.","es":""},"erroneous":true,"correction":{"fr":"","en":"Unwinding alone does not justify a reversal: there must be a change in estimates (IAS 36, paras. 114 and 116).","es":""}},{"id":"S3","text":{"fr":"","en":"I capped the reversal at the carrying amount the conveyor would have had without impairment, net of depreciation.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"I recognised the reversal in profit or loss.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Depreciation for the following years remains the amount calculated after the impairment.","es":""},"erroneous":true,"correction":{"fr":"","en":"After a reversal, depreciation is adjusted to allocate the new carrying amount, less residual value, over the remaining life (IAS 36, para. 121).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000151","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"REVERSAL_REVALUED_ASSET_SPLIT","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"revalued-asset"},"references":["IAS 36 §61","IAS 36 §117","IAS 36 §119","IAS 36 §120","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"Case data: land (not depreciated), measured under the revaluation model, was revalued from 300,000 to 340,000 (revaluation surplus 40,000). The following year, an impairment loss brought it down to 240,000: 40,000 in other comprehensive income, 60,000 in profit or loss. This year, following a change in estimates, its recoverable amount rises to 330,000 (cap without impairment: 340,000). There has been no other revaluation. Record the reversal entry.","es":""},"explanation":{"fr":"","en":"Total reversal: 330,000 − 240,000 = 90,000, below the cap of 340,000 (IAS 36, para. 117). For a revalued asset, the reversal is a revaluation increase (IAS 36, para. 119): it first goes back to profit or loss up to the loss previously taken to profit or loss (60,000), and the balance (30,000) goes to other comprehensive income and rebuilds the revaluation surplus (IAS 36, para. 120; IAS 16, para. 39). Reminder: the earlier loss was charged to other comprehensive income up to the revaluation surplus (40,000), with the excess in profit or loss (60,000) (IAS 36, para. 61). Total debit 90,000 = total credit 90,000.","es":""},"common_error":{"fr":"","en":"Taking everything to other comprehensive income, or rebuilding the revaluation surplus before profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"LAND","text":{"fr":"","en":"Land","es":""}},{"id":"REVERSAL_PL","text":{"fr":"","en":"Reversal of impairment loss (profit or loss)","es":""}},{"id":"REVALUATION_SURPLUS_OCI","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"LAND","side":"DEBIT","amount":90000},{"id":"L2","account":"REVERSAL_PL","side":"CREDIT","amount":60000},{"id":"L3","account":"REVALUATION_SURPLUS_OCI","side":"CREDIT","amount":30000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000152","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"INDICATOR_WITHOUT_REVERSAL_REVIEW_LIFE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"useful-life-review"},"references":["IAS 36 §110","IAS 36 §113","IAS 36 §114"],"exercise":{"prompt":{"fr":"","en":"Case data: an impaired packaging line benefits from major maintenance (internal indicator of reversal). The new test gives a recoverable amount still below the carrying amount, but the line can be operated longer than planned. What is the conclusion?","es":""},"explanation":{"fr":"","en":"An indicator of reversal may signal that the remaining useful life, the depreciation method or the residual value should be reviewed and adjusted under the applicable standard, even if no reversal is recognised (IAS 36, para. 113).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reverse part of the loss, since an indicator exists","es":""},"correct":false,"feedback":{"fr":"","en":"An indicator only triggers the estimate of the recoverable amount (IAS 36, para. 110); with no recoverable amount above the carrying amount, there is nothing to reverse (IAS 36, para. 114).","es":""}},{"id":"B","text":{"fr":"","en":"No reversal, but review the remaining useful life, the depreciation method and the residual value","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Do nothing until the next reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"Even without a reversal, the indicator may require the life, method and residual value to be reviewed at this reporting date (IAS 36, para. 113).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000153","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"REVERSAL_CORE_RULES","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §114","IAS 36 §117","IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"Complete the summary of the reversal rules for an individual asset.","es":""},"explanation":{"fr":"","en":"Condition: change in estimates (IAS 36, para. 114). Cap: carrying amount without impairment, net of depreciation (IAS 36, para. 117). Asset at cost: reversal in profit or loss (IAS 36, para. 119).","es":""},"common_error":{"fr":"","en":"Capping the reversal at original cost or taking it to OCI for an asset at cost: the cap is the amount without impairment, and the reversal goes to profit or loss.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"An impairment loss on an asset other than goodwill is reversed only if the {{c1}} used to determine its recoverable amount have changed. After the reversal, its carrying amount cannot exceed {{c2}}. For an asset measured at cost, the reversal is recognised {{c3}}.","es":""},"blanks":[{"id":"c1","mode":"CHOICE","choices":[{"id":"ESTIMATES","text":{"fr":"","en":"estimates","es":""}},{"id":"POLICIES","text":{"fr":"","en":"accounting policies","es":""}},{"id":"DATES","text":{"fr":"","en":"discounting dates","es":""}}],"answer":"ESTIMATES"},{"id":"c2","mode":"CHOICE","choices":[{"id":"WITHOUT_IMPAIRMENT","text":{"fr":"","en":"the amount it would have had without impairment, net of depreciation","es":""}},{"id":"ORIGINAL_COST","text":{"fr":"","en":"its original cost","es":""}},{"id":"BEFORE_LOSS","text":{"fr":"","en":"its carrying amount at the date of the loss","es":""}}],"answer":"WITHOUT_IMPAIRMENT"},{"id":"c3","mode":"CHOICE","choices":[{"id":"PROFIT_OR_LOSS","text":{"fr":"","en":"in profit or loss","es":""}},{"id":"OCI","text":{"fr":"","en":"in other comprehensive income","es":""}},{"id":"EQUITY","text":{"fr":"","en":"directly in equity","es":""}}],"answer":"PROFIT_OR_LOSS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000154","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS","IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"APPLICATION","format":"MINI_CASE","context":"PHARMA","tested_point":"REVERSAL_FULL_CYCLE_INDIVIDUAL_ASSET","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"numeric-example"},"references":["IAS 36 §110","IAS 36 §111","IAS 36 §114","IAS 36 §117","IAS 36 §118","IAS 36 §119","IAS 36 §121","IAS 16 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the filling line and answer the questions.","es":""},"explanation":{"fr":"","en":"Full cycle: indicators (IAS 36, paras. 110 and 111), change in estimate (IAS 36, para. 114), capped reversal (IAS 36, para. 117), recognition in profit or loss (IAS 36, para. 119), revised depreciation (IAS 36, para. 121).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: at the start of N a laboratory acquired a sterile filling line for 1,500,000, depreciated on a straight-line basis over 10 years, nil residual value, cost model. At the end of N+1, after a medicine was discontinued, its recoverable amount was estimated at 800,000; the loss was recognised and depreciation reduced to 100,000 a year. At the end of N+3, a five-year contract manufacturing agreement is signed with a large group and internal reporting shows a utilisation rate above budget. Value in use, recalculated with these new cash flows, is 1,000,000.","es":""},"parts":[{"prompt":{"fr":"","en":"What must the entity do at the end of N+3?","es":""},"explanation":{"fr":"","en":"The contract (favourable market development) and internal reporting are indicators of reversal (IAS 36, para. 111); they require the recoverable amount to be estimated (IAS 36, para. 110). The cash flows have changed: the condition in paragraph 114 is met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Note the indicators of reversal, estimate the recoverable amount and check that the estimates have changed","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing: an impairment loss is permanent","es":""},"correct":false,"feedback":{"fr":"","en":"Only the impairment loss on goodwill is permanent; for other assets, a reversal is possible (IAS 36, paras. 110 and 114).","es":""}},{"id":"C","text":{"fr":"","en":"Reverse the whole loss of 400,000","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is neither automatic nor equal to the original loss: it is calculated from the new recoverable amount and the cap (IAS 36, paras. 114 and 117).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the reversal at the end of N+3.","es":""},"explanation":{"fr":"","en":"Carrying amount: 800,000 − 2 × 100,000 = 600,000. Without impairment: 1,500,000 − 4 × 150,000 = 900,000. Reversal = min(1,000,000; 900,000) − 600,000 = 300,000, in profit or loss (IAS 36, paras. 117 and 119).","es":""},"common_error":{"fr":"","en":"Reversing up to recoverable amount (1,000,000): the reversal is capped at the carrying amount without impairment, net of depreciation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount at end of N+3","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at end of N+3 before reversal","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at end of N+3 without impairment","es":""},"answer":900000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Reversal","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount at end of N+3 before reversal","es":""},"expression":"a - 2 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"its recoverable amount was estimated at 800,000","es":""},"value":800000},{"symbol":"b","meaning":{"fr":"","en":"the loss was recognised and depreciation reduced to 100,000 a year","es":""},"value":100000}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"Reversal = min(1,000,000; 900,000) − 600,000 = 300,000, in profit or loss (IAS 36, paras. 117 and 119).","es":""},"references":["REF.IAS36.117","REF.IAS36.119"]}},{"prompt":{"fr":"","en":"What is the annual depreciation from N+4?","es":""},"explanation":{"fr":"","en":"New carrying amount 900,000 / 6 years = 150,000 a year (IAS 36, para. 121).","es":""},"common_error":{"fr":"","en":"Keeping the old depreciation after the reversal: depreciation is recomputed on the new carrying amount over the remaining life.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Remaining life at end of N+3","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual depreciation","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The 100,000 of recoverable amount above the cap may be taken to other comprehensive income.","es":""},"explanation":{"fr":"","en":"False. Above the cap, the increase would be a revaluation governed by the applicable standard (IAS 36, para. 118); since the line is measured under the cost model (IAS 16, para. 30), this excess is not recognised.","es":""},"common_error":{"fr":"","en":"Taking the excess above the cap to OCI for an asset at cost: that excess is not recognised.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000155","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS","IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"REVERSAL_METHOD_SEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"how-to-apply"},"references":["IAS 36 §110","IAS 36 §114","IAS 36 §116","IAS 36 §117","IAS 36 §119","IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps of the analysis of a reversal of an impairment loss for an individual asset.","es":""},"explanation":{"fr":"","en":"Indicators then recoverable amount (IAS 36, para. 110), condition of a change in estimate (IAS 36, paras. 114 and 116), cap (IAS 36, para. 117), recognition (IAS 36, para. 119), revised depreciation (IAS 36, para. 121).","es":""},"common_error":{"fr":"","en":"Recognising the reversal without checking that an estimate has changed or rebuilding the cap.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Look for external and internal indicators of reversal at the reporting date","es":""}},{"id":"S2","text":{"fr":"","en":"Estimate the current recoverable amount of the asset","es":""}},{"id":"S3","text":{"fr":"","en":"Check that an estimate has changed (and not merely the effect of time)","es":""}},{"id":"S4","text":{"fr":"","en":"Rebuild the carrying amount without impairment (cap)","es":""}},{"id":"S5","text":{"fr":"","en":"Recognise the capped reversal","es":""}},{"id":"S6","text":{"fr":"","en":"Recalculate depreciation over the remaining life","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000156","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"REVERSAL_RECOVERABLE_AMOUNT_BINDS","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"numeric-example"},"references":["IAS 36 §63","IAS 36 §117","IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"A transformer is measured at cost and depreciated on a straight-line basis (case assumption). At the end of N+2 it was impaired; at the end of N+4, a lasting increase in connection tariffs raises forecast cash flows. Calculate the reversal and the new depreciation.","es":""},"explanation":{"fr":"","en":"Original depreciation: (500,000 − 50,000) / 9 = 50,000. End of N+2: 350,000, written down to 230,000; new depreciation (230,000 − 50,000) / 6 = 30,000 (IAS 36, para. 63). End of N+4: 230,000 − 60,000 = 170,000. Without impairment: 500,000 − 5 × 50,000 = 250,000. Here the recoverable amount (240,000) is the lower limit: reversal = 240,000 − 170,000 = 70,000 (IAS 36, para. 117). Afterwards: (240,000 − 50,000) / 4 = 47,500 (IAS 36, para. 121).","es":""},"common_error":{"fr":"","en":"Reversing up to the 250,000 cap (reversal of 80,000) although the recoverable amount is lower, or forgetting the residual value in the new depreciation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost (start of N)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Useful life","es":""},"value":"9","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount at end of N+2","es":""},"value":"230000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount at end of N+4","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount at end of N+4 before reversal","es":""},"answer":170000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at end of N+4 without impairment","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Reversal","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Annual depreciation from N+5","es":""},"answer":47500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Carrying amount at end of N+4 without impairment","es":""},"expression":"a - 5 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost (start of N)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":50000,"unit":"EUR"}],"result":250000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Reversal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount at end of N+4","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount at end of N+4 before reversal","es":""},"value":170000,"unit":"EUR"}],"result":70000,"unit":"EUR","rationale":{"fr":"","en":"Here the recoverable amount (240,000) is the lower limit: reversal = 240,000 − 170,000 = 70,000 (IAS 36, para. 117).","es":""}},{"step":"S4","meaning":{"fr":"","en":"Annual depreciation from N+5","es":""},"expression":"(a - b) / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount at end of N+4","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":50000,"unit":"EUR"}],"result":47500,"unit":"EUR"}],"references":["REF.IAS36.63","REF.IAS36.117","REF.IAS36.121"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000157","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"GOODWILL_NOT_FIRST_IN_REVERSAL","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §104","IAS 36 §122","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"When an impaired CGU recovers value, the reversal is first allocated to goodwill, since goodwill absorbed the loss first.","es":""},"explanation":{"fr":"","en":"False. Although goodwill absorbs the loss first (IAS 36, para. 104), it is excluded from the reversal: the reversal is allocated to the other assets of the CGU (IAS 36, para. 122), and an impairment loss on goodwill is never reversed (IAS 36, para. 124).","es":""},"common_error":{"fr":"","en":"Believing that the reversal follows the loss path backwards.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000158","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"GOODWILL_REVERSAL_BAN_RATIONALE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124","IAS 36","IAS 38 §48"],"exercise":{"prompt":{"fr":"","en":"Case data: in N-1, a media group recognised an impairment loss of 2,000,000 on its \"Radio\" CGU, allocated entirely to the unit's goodwill. In N, audiences recover and the recoverable amount of the CGU again exceeds its carrying amount, by 2,500,000. The CFO proposes reversing the loss. What do you answer?","es":""},"explanation":{"fr":"","en":"An impairment loss recognised for goodwill is never reversed (IAS 36, para. 124). The standard explains this by the fact that a later increase in recoverable amount would most likely be internally generated goodwill (IAS 36, para. 125), whose recognition is prohibited (IAS 38, para. 48). Since the loss was allocated entirely to goodwill (case data), no other asset of the CGU can be subject to a reversal.","es":""},"common_error":{"fr":"","en":"Applying to goodwill the capped reversal mechanism that applies to other assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reverse 2,000,000, the original loss, which caps any reversal","es":""},"correct":false,"feedback":{"fr":"","en":"The cap at the original loss applies to other assets; for goodwill, no reversal is possible (IAS 36, para. 124).","es":""}},{"id":"B","text":{"fr":"","en":"Reverse 2,500,000, since the recoverable amount exceeds the carrying amount by that amount","es":""},"correct":false,"feedback":{"fr":"","en":"No reversal is permitted for goodwill, let alone beyond the original loss.","es":""}},{"id":"C","text":{"fr":"","en":"Reverse nothing: the increase most likely reflects internally generated goodwill, which may not be recognised","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Reverse the loss only if the recovery in audiences results from an external factor, such as the advertising market","es":""},"correct":false,"feedback":{"fr":"","en":"The cause of the increase makes no difference: the ban on reversing goodwill impairment is absolute (IAS 36, para. 124).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000159","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"CGU_REVERSAL_PRO_RATA","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"example"},"references":["IAS 36 §122","IAS 36 §123","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"A 'regional network' CGU was impaired two years ago; its goodwill was fully written off. Following a change in estimates, its recoverable amount rises. Calculate the allocation of the reversal.","es":""},"explanation":{"fr":"","en":"Increase: 600,000 − 500,000 = 100,000. Pro rata to the assets other than goodwill (IAS 36, para. 122): equipment 100,000 × 300 / 500 = 60,000 (→ 360,000 ≤ 380,000), licence 40,000 (→ 240,000 ≤ 260,000); caps respected (IAS 36, para. 123). Goodwill stays at 0 (IAS 36, para. 124).","es":""},"common_error":{"fr":"","en":"Allocating part of the reversal to goodwill: the reversal is spread only among assets other than goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Network equipment (carrying amount; cap 380,000)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Licence (carrying amount; cap 260,000)","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill","es":""},"value":"0","unit":"EUR"},{"label":{"fr":"","en":"New recoverable amount of the CGU","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Increase to allocate","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Reversal on the equipment","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Reversal on the licence","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Goodwill after the reversal","es":""},"answer":0,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000160","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"CGU_REVERSAL_CAP_REALLOCATION","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"numeric-example"},"references":["IAS 36 §117","IAS 36 §122","IAS 36 §123"],"exercise":{"prompt":{"fr":"","en":"The 'stamping' CGU of a car-parts supplier (goodwill fully written off in the past) sees its recoverable amount rise following a change in estimates. Allocate the reversal while respecting the caps.","es":""},"explanation":{"fr":"","en":"Increase: 720,000 − 600,000 = 120,000. Pro rata (IAS 36, para. 122): building 80,000, tooling 40,000. The building would reach 480,000 > cap 450,000 (carrying amount that would have existed with no prior loss, IAS 36, para. 117): it is limited to 50,000 and the 30,000 excess is reallocated to the tooling (IAS 36, para. 123), which receives 70,000 (→ 270,000 ≤ 290,000). Total 120,000.","es":""},"common_error":{"fr":"","en":"Stopping at 90,000 (50,000 + 40,000) and forgetting to reallocate the trimmed excess.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Production building: carrying amount","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Building: cap (amount without impairment; own recoverable amount not determinable)","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Tooling: carrying amount","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tooling: cap","es":""},"value":"290000","unit":"EUR"},{"label":{"fr":"","en":"New recoverable amount of the CGU","es":""},"value":"720000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Increase to allocate","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Initial pro rata share of the building","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Reversal recognised on the building","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Reversal recognised on the tooling","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Total reversal","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000161","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CGU_REVERSAL_RULES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §119","IAS 36 §122","IAS 36 §123","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"Which statements about the reversal of an impairment loss for a CGU are correct?","es":""},"explanation":{"fr":"","en":"Reversal allocated pro rata to the assets other than goodwill and treated as individual reversals, hence in profit or loss for assets at cost (IAS 36, paras. 119 and 122); cap per asset and reallocation excluding goodwill (IAS 36, para. 123); no reversal on goodwill (IAS 36, para. 124).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is allocated to the assets of the CGU other than goodwill","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The allocation is made pro rata to the carrying amounts of those assets","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Each asset is capped at the lower of its recoverable amount (if determinable) and its amount without impairment","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The part that no asset can absorb is added to goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is never reversed (IAS 36, para. 124); the excess can only be reallocated to the other assets excluding goodwill (IAS 36, para. 123).","es":""}},{"id":"E","text":{"fr":"","en":"For assets at cost, each increase is recognised in profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000162","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"CGU_REVERSAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"entries"},"references":["IAS 36 §119","IAS 36 §122","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel (CGU, cost model) had been impaired; the loss first eliminated goodwill of 70,000. This year, a reversal of 120,000 is allocated, caps respected: 80,000 to the building and 40,000 to the furniture. Record the entry.","es":""},"explanation":{"fr":"","en":"Each increase is a reversal for an individual asset, recognised in profit or loss for an asset at cost (IAS 36, paras. 119 and 122): debit accumulated impairment losses on the building (80,000) and the furniture (40,000), credit the reversal in profit or loss (120,000). No line for goodwill, whose loss is never reversed (IAS 36, para. 124).","es":""},"common_error":{"fr":"","en":"Debiting goodwill by 70,000 to 'restore' the original loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ACC_IMP_BUILDING","text":{"fr":"","en":"Accumulated impairment losses – building","es":""}},{"id":"ACC_IMP_FURNITURE","text":{"fr":"","en":"Accumulated impairment losses – furniture","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"REVERSAL_PL","text":{"fr":"","en":"Reversal of impairment loss (profit or loss)","es":""}},{"id":"REVALUATION_SURPLUS_OCI","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}}],"lines":[{"id":"L1","account":"ACC_IMP_BUILDING","side":"DEBIT","amount":80000},{"id":"L2","account":"ACC_IMP_FURNITURE","side":"DEBIT","amount":40000},{"id":"L3","account":"REVERSAL_PL","side":"CREDIT","amount":120000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000163","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"CGU_REVERSAL_MEMO_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"pitfalls"},"references":["IAS 36 §122","IAS 36 §123","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"The management controller of a software publisher writes a memo on the reversal of the impairment loss for the 'cloud solutions' CGU. Spot the errors.","es":""},"explanation":{"fr":"","en":"S3 and S4 apply the cap and the reallocation excluding goodwill (IAS 36, para. 123). S1 contradicts the ban on reversing goodwill (IAS 36, para. 124); S2 wrongly includes goodwill in the pro rata base (IAS 36, para. 122).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The goodwill of the CGU, impaired by 60,000 two years ago, is restored by 60,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"An impairment loss on goodwill is never reversed (IAS 36, para. 124).","es":""}},{"id":"S2","text":{"fr":"","en":"The pro rata is calculated on the carrying amounts of all the assets of the CGU, including goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"The pro rata covers only the assets other than goodwill (IAS 36, para. 122).","es":""}},{"id":"S3","text":{"fr":"","en":"The servers cannot exceed the lower of their own recoverable amount and their amount without impairment.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The part trimmed from the servers is reallocated pro rata to the other assets of the CGU, excluding goodwill.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000164","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"APPLICATION","format":"MINI_CASE","context":"TELECOM","tested_point":"CGU_REVERSAL_ALL_CAPS_REACHED","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"numeric-example"},"references":["IAS 36 §122","IAS 36 §123","IAS 36 §124","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Analyse the reversal for the 'West network' CGU and answer the questions.","es":""},"explanation":{"fr":"","en":"Pro rata allocation excluding goodwill (IAS 36, para. 122), caps and reallocation (IAS 36, para. 123), goodwill frozen (IAS 36, paras. 124 and 125).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: an operator's 'West network' CGU was impaired three years ago; the loss reduced goodwill from 90,000 to 30,000 and reduced the other assets. This year, new wholesale contracts raise forecast cash flows. The CGU's recoverable amount is now 930,000, against a carrying amount of 830,000 including goodwill (exhibit below): the increase to be allocated is 100,000 (cost model).","es":""},"exhibits":[{"title":{"fr":"","en":"Assets of the CGU at the reporting date","es":""},"body":{"fr":"","en":"| Asset | Carrying amount | Amount without impairment | Own recoverable amount |\n| --- | --- | --- | --- |\n| Towers | 500,000 | 560,000 | not determinable |\n| Fibre equipment | 300,000 | 350,000 | 320,000 |\n| Goodwill | 30,000 | — | — |","es":""}}],"parts":[{"prompt":{"fr":"","en":"Allocate the increase of 100,000.","es":""},"explanation":{"fr":"","en":"Caps (IAS 36, para. 123): fibre min(320,000; 350,000) = 320,000, headroom 20,000; towers 560,000, headroom 60,000. Pro rata (IAS 36, para. 122): towers 62,500, fibre 37,500 → fibre trimmed to 20,000, 17,500 reallocated to the towers (80,000) → towers trimmed to 60,000. Total reversal 80,000; the remaining 20,000 cannot be allocated to any asset and is not recognised.","es":""},"common_error":{"fr":"","en":"Recognising the whole 100,000 increase: each asset is capped; the remainder that cannot be allocated is not recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Increase to allocate","es":""},"value":"100000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Reversal on the fibre equipment","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Reversal on the towers","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total reversal recognised","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Part not recognised","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What is the amount of goodwill after the reversal?","es":""},"explanation":{"fr":"","en":"Goodwill stays at its impaired amount of 30,000 (IAS 36, para. 124).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"30,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"50,000","es":""},"correct":false,"feedback":{"fr":"","en":"The 20,000 not allocated does not go to goodwill: its loss is never reversed (IAS 36, para. 124).","es":""}},{"id":"C","text":{"fr":"","en":"90,000","es":""},"correct":false,"feedback":{"fr":"","en":"Restoring the original goodwill would amount to reversing its loss, which is prohibited (IAS 36, para. 124).","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Management may present the 20,000 not recognised as a 'recovery in goodwill value' in the accounts.","es":""},"explanation":{"fr":"","en":"False. Such an increase would probably be internally generated goodwill (IAS 36, para. 125); it is not recognised (IAS 36, para. 124).","es":""},"common_error":{"fr":"","en":"Presenting the remainder as a recovery of goodwill: it would be internally generated goodwill, which is not recognised.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000165","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"APPLICATION","format":"MATCHING","context":"GENERIC","tested_point":"CGU_REVERSAL_TREATMENTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §119","IAS 36 §120","IAS 36 §122","IAS 36 §123","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"Match each item of a CGU whose loss is reversed with the corresponding treatment.","es":""},"explanation":{"fr":"","en":"Goodwill: never reversed (IAS 36, para. 124). CGU assets: individual reversals (IAS 36, para. 122), in profit or loss for an asset at cost (IAS 36, para. 119), in other comprehensive income for a revalued asset beyond the loss previously taken to profit or loss (IAS 36, para. 120). Cap and reallocation excluding goodwill (IAS 36, para. 123).","es":""},"common_error":{"fr":"","en":"Reversing the goodwill loss, or taking to profit or loss the reversal on a revalued building above the loss previously in profit or loss: that excess goes to OCI.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Goodwill allocated to the CGU","es":""}},{"id":"L2","text":{"fr":"","en":"Machine measured at cost, below its cap","es":""}},{"id":"L3","text":{"fr":"","en":"Revalued building, beyond the loss previously taken to profit or loss","es":""}},{"id":"L4","text":{"fr":"","en":"Equipment whose pro rata share exceeds its cap","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"No reversal","es":""}},{"id":"R2","text":{"fr":"","en":"Reversal in profit or loss","es":""}},{"id":"R3","text":{"fr":"","en":"Reversal in other comprehensive income (revaluation surplus)","es":""}},{"id":"R4","text":{"fr":"","en":"Trimmed to its cap, excess reallocated to the other assets excluding goodwill","es":""}},{"id":"R5","text":{"fr":"","en":"Excess allocated to goodwill","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000166","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.GOODWILL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CGU_REVERSAL_ELIGIBLE_ASSETS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS36.000017","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"understand"},"references":["IAS 36 §122","IAS 36 §123","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"A store (CGU) has its impairment loss reversed. Classify each item: can it receive part of the reversal?","es":""},"explanation":{"fr":"","en":"The reversal is allocated to the assets other than goodwill (IAS 36, para. 122), each within its cap (IAS 36, para. 123): an asset already at its cap receives nothing more. Goodwill is never reversed (IAS 36, para. 124).","es":""},"common_error":{"fr":"","en":"Giving part of the reversal to goodwill or to an asset already at its cap: neither can receive it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CAN_RECEIVE","text":{"fr":"","en":"Can receive part of the reversal","es":""}},{"id":"CANNOT_RECEIVE","text":{"fr":"","en":"Cannot receive a reversal","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Store building, below its cap","es":""},"category":"CAN_RECEIVE"},{"id":"I2","text":{"fr":"","en":"Fittings, below their cap","es":""},"category":"CAN_RECEIVE"},{"id":"I3","text":{"fr":"","en":"Finite-life brand licence, below its cap","es":""},"category":"CAN_RECEIVE"},{"id":"I4","text":{"fr":"","en":"Goodwill acquired with the store","es":""},"category":"CANNOT_RECEIVE"},{"id":"I5","text":{"fr":"","en":"Cash registers already at their cap","es":""},"category":"CANNOT_RECEIVE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000167","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS","IAS36.DISCLOSURE.MATERIAL_EVENTS","IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DISCLOSURE_LEVELS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"understand"},"references":["IAS 36 §126","IAS 36 §129","IAS 36 §130","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"Classify each item of information according to the IAS 36 requirement it falls under.","es":""},"explanation":{"fr":"","en":"Class of assets: losses and reversals in profit or loss (with line items) and in other comprehensive income (IAS 36, para. 126). Segment: IAS 36, para. 129. Each loss or reversal: events, amount, recoverable amount, rates (IAS 36, para. 130). CGU with significant goodwill: assumptions, projection period, growth, rates, sensitivity (IAS 36, para. 134).","es":""},"common_error":{"fr":"","en":"Placing the assumptions for the CGU with goodwill under the disclosures for each loss: they belong to the specific requirement for CGUs with significant goodwill.","es":""},"format":"CLASSIFICATION","categories":[{"id":"BY_CLASS","text":{"fr":"","en":"By class of assets","es":""}},{"id":"BY_SEGMENT","text":{"fr":"","en":"By reportable segment","es":""}},{"id":"EACH_EVENT","text":{"fr":"","en":"For each loss or reversal of the period","es":""}},{"id":"GOODWILL_CGU","text":{"fr":"","en":"CGU with significant goodwill or indefinite-life intangibles","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Impairment losses on machinery recognised in profit or loss and the line items concerned","es":""},"category":"BY_CLASS"},{"id":"I2","text":{"fr":"","en":"Impairment losses on revalued buildings recognised in other comprehensive income","es":""},"category":"BY_CLASS"},{"id":"I3","text":{"fr":"","en":"Losses and reversals of the period for the 'Europe' segment","es":""},"category":"BY_SEGMENT"},{"id":"I4","text":{"fr":"","en":"Events that led to the impairment of the Lille plant","es":""},"category":"EACH_EVENT"},{"id":"I5","text":{"fr":"","en":"Current and previous discount rate of the value in use of an impaired line","es":""},"category":"EACH_EVENT"},{"id":"I6","text":{"fr":"","en":"Growth rate used beyond the budget period for the CGU carrying the main goodwill","es":""},"category":"GOODWILL_CGU"},{"id":"I7","text":{"fr":"","en":"Sensitivity analysis for that same CGU, whose headroom is small","es":""},"category":"GOODWILL_CGU"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000168","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"DOCUMENTATION","format":"MULTIPLE_CHOICE","context":"RETAIL","tested_point":"GOODWILL_CGU_DISCLOSURE_CONTENT","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"A retailer allocates significant goodwill to its 'South Supermarkets' CGU, whose recoverable amount is based on value in use. Which disclosures must it provide for this CGU?","es":""},"explanation":{"fr":"","en":"For each CGU carrying significant goodwill: carrying amounts, basis of recoverable amount, key assumptions and management's approach, projection period and growth rate, discount rate, and sensitivity where needed (IAS 36, para. 134).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of the goodwill allocated","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The key assumptions and management's approach to determining them","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The projection period and the growth rate used beyond it","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The discount rate","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The detailed line-by-line budget of each store","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires the key assumptions and the approach, not the publication of detailed budgets (IAS 36, para. 134).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000169","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"GOODWILL_CGU_DISCLOSURE_EVERY_YEAR","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"For a CGU carrying significant goodwill, the disclosures on key assumptions are required only in the year in which an impairment loss is recognised.","es":""},"explanation":{"fr":"","en":"False. Paragraph 134 covers each CGU carrying significant goodwill or indefinite-life intangibles, whether or not a loss has been recognised (IAS 36, para. 134); for other assets, information on assumptions is only encouraged (IAS 36, para. 132).","es":""},"common_error":{"fr":"","en":"Limiting key assumption disclosures to loss years: they are required every year for a CGU with significant goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000170","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DISCLOSURE_TABLE_AMOUNTS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"numeric-example"},"references":["IAS 36 §126","IAS 36 §129"],"exercise":{"prompt":{"fr":"","en":"A group reports two segments, X and Y. From the events of the period, calculate the amounts for the tables by class and by segment.","es":""},"explanation":{"fr":"","en":"By class (IAS 36, para. 126): property, plant and equipment 120,000 + 30,000 = 150,000 in profit or loss and 50,000 in other comprehensive income; total losses in profit or loss 150,000 + 200,000 = 350,000. By segment (IAS 36, para. 129): Y = 30,000 + 200,000 = 230,000 of losses in profit or loss; X = 120,000 of losses and 40,000 of reversals in profit or loss.","es":""},"common_error":{"fr":"","en":"Adding the part taken to other comprehensive income to the losses in profit or loss, or offsetting the patent reversal against the losses.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Machine A (property, plant and equipment, segment X): loss in profit or loss","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Revalued building (property, plant and equipment, segment Y): loss in other comprehensive income","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Same building: loss in profit or loss","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Patent (intangible asset, segment X): reversal in profit or loss","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill (segment Y): loss in profit or loss","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Property, plant and equipment: losses in profit or loss","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Property, plant and equipment: losses in other comprehensive income","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total losses in profit or loss, all classes","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Segment Y: losses in profit or loss","es":""},"answer":230000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Segment X: reversals in profit or loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Property, plant and equipment: losses in profit or loss","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Machine A (property, plant and equipment, segment X): loss in profit or loss","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Same building: loss in profit or loss","es":""},"value":30000,"unit":"EUR"}],"result":150000,"unit":"EUR","rationale":{"fr":"","en":"By class (IAS 36, para. 126): property, plant and equipment 120,000 + 30,000 = 150,000 in profit or loss and 50,000 in other comprehensive income","es":""}},{"step":"S3","meaning":{"fr":"","en":"Total losses in profit or loss, all classes","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Property, plant and equipment: losses in profit or loss","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill (segment Y): loss in profit or loss","es":""},"value":200000,"unit":"EUR"}],"result":350000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Segment Y: losses in profit or loss","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Same building: loss in profit or loss","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill (segment Y): loss in profit or loss","es":""},"value":200000,"unit":"EUR"}],"result":230000,"unit":"EUR"}],"references":["REF.IAS36.126","REF.IAS36.129"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000171","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS","IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"DRAFT_IMPAIRMENT_NOTE_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"pitfalls"},"references":["IAS 36 §130","IAS 36","IAS 36 §133","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"Here are extracts from an energy producer's draft 'Impairment' note. Spot those that do not comply with IAS 36.","es":""},"explanation":{"fr":"","en":"S2 complies with the aggregated disclosure (IAS 36, para. 131); S3 gives the amount and reasons for unallocated goodwill (IAS 36, para. 133). S1 omits the required discount rate (IAS 36, para. 130); S4 omits the required sensitivity (IAS 36, para. 134).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'The discount rate used for the value in use of the impaired power plant is not disclosed, for confidentiality reasons.'","es":""},"erroneous":true,"correction":{"fr":"","en":"For a loss based on value in use, the current and previous discount rate must be disclosed (IAS 36, para. 130).","es":""}},{"id":"S2","text":{"fr":"","en":"'The other losses of the year mainly concern meters; they result from the roll-out of a new technology.'","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"'Goodwill of 12 million arising from the December acquisition has not yet been allocated; allocation will be completed once the measurement of the assets acquired is finalised.'","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"'No sensitivity analysis is presented for the Wind CGU, although a reasonably possible 0.5-point increase in the discount rate would be enough to give rise to a loss.'","es":""},"erroneous":true,"correction":{"fr":"","en":"When a reasonably possible change in a key assumption would give rise to a loss, sensitivity information is required (IAS 36, para. 134).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000172","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS","IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"DOCUMENTATION","format":"MINI_CASE","context":"RETAIL","tested_point":"IMPAIRMENT_NOTE_PREPARATION","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"judgment"},"references":["IAS 36 §130","IAS 36","IAS 36 §133","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"Prepare the Delta group's 'Impairment' note by answering the questions.","es":""},"explanation":{"fr":"","en":"Detailed loss (IAS 36, para. 130), CGU with significant goodwill (IAS 36, para. 134), dispersed goodwill (IAS 36, para. 135), unallocated goodwill (IAS 36, para. 133).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: the retail group Delta recognised this year an impairment loss of 900,000 on its Bordeaux flagship store (CGU); the recoverable amount, 4,100,000, is based on fair value less costs of disposal, measured using a discounted cash flow technique (level 3). Its goodwill already allocated to CGUs amounts to 30 million: 22 million allocated to the 'Hypermarkets' CGU (no loss, comfortable headroom), the balance spread over forty 'Convenience' CGUs, none of which carries a significant amount. Finally, goodwill of 3 million from a November acquisition has not yet been allocated.","es":""},"parts":[{"prompt":{"fr":"","en":"For the Bordeaux store, which disclosures are required?","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal: hierarchy level, technique and key assumptions for levels 2 and 3, discount rate if a present value technique is used, in addition to the events, amount and recoverable amount (IAS 36, para. 130).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The events and circumstances that led to the loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Level 3 of the fair value hierarchy, the technique and the key assumptions","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The discount rate used in the discounted cash flow technique","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No information: a single store is of no concern to the group users","es":""},"correct":false,"feedback":{"fr":"","en":"Paragraph 130 covers any asset or CGU for which an impairment loss was recognised or reversed during the period: the 900,000 loss on the Bordeaux store falls within it (IAS 36, para. 130). The aggregated information only concerns losses not detailed under that paragraph (IAS 36, para. 131).","es":""}}],"id":"P1","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"For the 'Hypermarkets' CGU (22 million of goodwill, no loss), what must be disclosed?","es":""},"explanation":{"fr":"","en":"Significant goodwill: paragraph 134 disclosures on the estimates every year; sensitivity only if a reasonably possible change would give rise to a loss (IAS 36, para. 134).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing, since no loss was recognised","es":""},"correct":false,"feedback":{"fr":"","en":"Paragraph 134 applies to CGUs carrying significant goodwill, even with no loss (IAS 36, para. 134).","es":""}},{"id":"B","text":{"fr":"","en":"The goodwill allocated, the basis of recoverable amount, the key assumptions, the approach, the projection period, the growth and discount rates","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only a sensitivity analysis","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity is required only if a reasonably possible change would give rise to a loss; here headroom is comfortable, but the other items remain required (IAS 36, para. 134).","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"For the forty 'Convenience' CGUs, Delta discloses that goodwill is spread over several CGUs with no significant amount for each, together with the total allocated.","es":""},"explanation":{"fr":"","en":"True. That is the requirement of paragraph 135; if several of these CGUs rely on the same key assumptions and their total is significant, further disclosures are required (IAS 36, para. 135).","es":""},"common_error":{"fr":"","en":"Requiring CGU-by-CGU detail for dispersed goodwill: the fact and total are disclosed, with more if shared assumptions cover a significant total.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"What should be disclosed for the 3 million of goodwill not yet allocated?","es":""},"explanation":{"fr":"","en":"Goodwill unallocated at the reporting date: amount and reasons (IAS 36, para. 133).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its amount and the reasons why it has not yet been allocated","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing until it is allocated","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill unallocated at the reporting date must be disclosed with its amount and the reasons (IAS 36, para. 133).","es":""}},{"id":"C","text":{"fr":"","en":"A sensitivity analysis","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity concerns CGUs to which significant goodwill is allocated (IAS 36, para. 134), not unallocated goodwill (IAS 36, para. 133).","es":""}}],"id":"P4","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000173","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"GOODWILL_SPECIAL_DISCLOSURES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"special-cases"},"references":["IAS 36","IAS 36 §133","IAS 36 §134","IAS 36 §136"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the disclosure provided for by IAS 36.","es":""},"explanation":{"fr":"","en":"Unallocated goodwill: amount and reasons (IAS 36, para. 133). Dispersed goodwill: fact and total (IAS 36, para. 135). Carried-forward calculation: possible basis for the disclosures in paras. 134 and 135 (IAS 36, para. 136). Assumptions for other assets: disclosure encouraged (IAS 36, para. 132).","es":""},"common_error":{"fr":"","en":"Believing assumption disclosure is mandatory for all assets: it is only encouraged outside goodwill and indefinite-life intangibles.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Goodwill acquired during the year, unallocated at the reporting date","es":""}},{"id":"L2","text":{"fr":"","en":"Goodwill spread over many CGUs, none significant","es":""}},{"id":"L3","text":{"fr":"","en":"Detailed recoverable amount calculation carried forward from a prior period","es":""}},{"id":"L4","text":{"fr":"","en":"Recoverable amount assumptions for assets with no goodwill or indefinite-life intangible","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Disclose the amount and the reasons why it is unallocated","es":""}},{"id":"R2","text":{"fr":"","en":"Disclose that fact and the total allocated","es":""}},{"id":"R3","text":{"fr":"","en":"May serve as the basis for the disclosures on estimates","es":""}},{"id":"R4","text":{"fr":"","en":"Disclosure encouraged","es":""}},{"id":"R5","text":{"fr":"","en":"Disclosure prohibited","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000174","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"HOSPITALITY","tested_point":"AGGREGATED_IMPAIRMENT_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS36.000018","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel group recognised many small impairment losses on room furniture in several hotels, which it does not detail individually under paragraph 130. What must it disclose for these losses?","es":""},"explanation":{"fr":"","en":"For all losses and reversals not detailed under paragraph 130, the entity discloses the main classes of assets affected and the main events and circumstances (IAS 36, para. 131).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The main classes of assets affected and the main events and circumstances","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing, since they are not detailed individually","es":""},"correct":false,"feedback":{"fr":"","en":"Losses not detailed under paragraph 130 give rise to aggregated disclosure (IAS 36, para. 131).","es":""}},{"id":"C","text":{"fr":"","en":"The recoverable amount and discount rate for each room","es":""},"correct":false,"feedback":{"fr":"","en":"That level of detail falls under paragraph 130; for losses not detailed, the information is aggregated (IAS 36, para. 131).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000175","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"ENERGY","tested_point":"MATERIALITY_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS36.000004","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §9","IAS 36 §15","IAS 36 §16"],"exercise":{"prompt":{"fr":"","en":"Case data: an operator of hydroelectric power plants is closing its year. Short-term market interest rates have risen by 1.5 points; long-term rates are almost unchanged. The upper valley plant still has 40 years of useful life; last year's calculation showed a recoverable amount 30% above its carrying amount. You are reviewing the closing memo that supports the absence of a new formal estimate. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The memo is right in substance: the indicator was considered at the reporting date (IAS 36, para. 9); a large previous headroom that no event has reduced (IAS 36, para. 15) and a rise in short-term rates that is unlikely to affect the rate of an asset with a long remaining life (IAS 36, para. 16) mean that no new formal estimate is needed. The errors concern documentation and frequency: the analysis supporting the exemption must be demonstrable, and the review is repeated at each reporting date. Keeping the evidence on file is good practice (professional judgement), not a requirement stated by the standard.","es":""},"common_error":{"fr":"","en":"Confusing 'no formal estimate' with 'no analysis': the exemption actually requires a supported analysis, repeated at each reporting date.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"'The rise in market interest rates is one of the indicators to be considered: we analysed it at the reporting date.'","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"'Last year's calculation showed a 30% headroom that no event during the year has reduced: a new formal estimate is not needed. The previous calculation and the headroom analysis are attached to the memo.'","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"'The rise mainly concerns short-term rates, whereas the plant has a long remaining useful life: the discount rate is unlikely to be significantly affected.'","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"'Since no formal estimate is required, there is no need to keep a record of the indicator analysis.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Assessing indicators is an obligation at each reporting date (IAS 36, para. 9) and the exemption from a formal estimate rests on an analysis (previous headroom, sensitivity of the rate) that must be demonstrable (IAS 36, paras. 15 and 16). Keeping that analysis on file is a matter of judgement and good professional practice.","es":""}},{"id":"S5","text":{"fr":"","en":"'With a 30% headroom, the same conclusion will hold for the next five years without any new review of indicators.'","es":""},"erroneous":true,"correction":{"fr":"","en":"Indicators are assessed at each reporting date (IAS 36, para. 9); the exemption only holds as long as no event has eliminated the headroom (IAS 36, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000176","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"DOCUMENTATION","format":"MULTIPLE_CHOICE","context":"TELECOM","tested_point":"PROJECTIONS_WORKPAPER_SUPPORT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS36.000006","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"judgment"},"references":["IAS 36 §33","IAS 36 §34","IAS 36 §35"],"exercise":{"prompt":{"fr":"","en":"Case data: a telecom operator is preparing the file for the value in use test of its 'West Fibre' CGU. Management's plan covers seven years and assumes, beyond that, growth of 4% a year, above the market's long-term average (2%). Which items support, in the file, compliance with the IAS 36 requirements on cash flow projections?","es":""},"explanation":{"fr":"","en":"Projections are based on the most recent approved budgets, excluding uncommitted restructurings and enhancements, over five years at most unless justified, then on a steady or declining rate not exceeding the long-term average unless justified (IAS 36, para. 33). Management assesses its assumptions against past differences between forecasts and actual results (IAS 36, para. 34), and a horizon longer than five years is only acceptable if it demonstrates its ability to forecast reliably (IAS 36, para. 35). Items A to D are therefore those that support these requirements; the form of the file is a matter of professional judgement.","es":""},"common_error":{"fr":"","en":"Thinking that management's plan is sufficient as it stands: IAS 36 sets limits on the horizon, the growth rate and consistency with past results.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reconciliation with the most recent budgets approved by management, adjusted to remove cash flows from uncommitted restructurings and enhancement investments","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An analysis of past differences between forecasts and actual cash flows, with their causes","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Evidence of management's ability to forecast reliably over seven years, since the horizon exceeds five years","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The justification of the 4% growth rate, which exceeds the long-term average","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Management's written approval of the test result alone, without the underlying assumptions","es":""},"correct":false,"feedback":{"fr":"","en":"Projections must be based on reasonable and supportable assumptions, giving greater weight to external evidence (IAS 36, para. 33): an approval of the result does not replace the assumptions behind it.","es":""}},{"id":"F","text":{"fr":"","en":"An extrapolation of the plan over fifteen years at 4%, without further justification, on the grounds that a longer horizon gives a more precise value","es":""},"correct":false,"feedback":{"fr":"","en":"Beyond five years, the detailed horizon requires management to demonstrate its ability to forecast reliably (IAS 36, para. 35), and a growth rate above the long-term average must be justified (IAS 36, para. 33).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000177","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"DOCUMENTATION","format":"SINGLE_CHOICE","context":"LEISURE","tested_point":"CGU_CHANGE_DOCUMENTATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS36.000010","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72","IAS 36 §73","IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Case data: a cinema operator used to test its two cinemas in the same city separately. This year, it brought them together under a single ticket office and a shared season pass; after analysis, management concludes that their cash inflows are no longer largely independent and groups them into a single CGU. An impairment loss is recognised on that CGU at the reporting date. What documentation should be retained?","es":""},"explanation":{"fr":"","en":"CGUs remain the same from period to period unless a change is justified (IAS 36, para. 72). The single ticket office and shared season pass are the facts underlying management's conclusion (case data; whether inflows are 'largely independent' is a matter of professional judgement): the file must set them out. Since a loss is recognised on a CGU whose composition has changed, the notes describe the CGU, including the change in grouping (IAS 36, paras. 73 and 130).","es":""},"common_error":{"fr":"","en":"Believing that consistency of CGUs prohibits any change or, conversely, that a judgement-based change need not be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Justify the change in grouping in the file and, since the loss is recognised on the CGU, describe the CGU and the change in its composition in the notes","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No change is permitted: each cinema must remain a separate CGU","es":""},"correct":false,"feedback":{"fr":"","en":"CGUs are identified consistently from period to period unless a change is justified (IAS 36, para. 72): a justified change is therefore possible.","es":""}},{"id":"C","text":{"fr":"","en":"The change is a matter of judgement: it calls for no justification and no specific disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"The change must be justified (IAS 36, para. 72) and, when a loss is recognised or reversed on the CGU, the change in grouping is part of the required disclosures (IAS 36, paras. 73 and 130).","es":""}},{"id":"D","text":{"fr":"","en":"Treat the change as the correction of an error and redo the tests of prior years with the new CGU","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not treat a justified change of CGU as an error: it requires consistency unless justified, and disclosure when a loss is recognised or reversed (IAS 36, paras. 72 and 73).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS36.000178","source":"V2","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDICATORS"],"dimension":"DOCUMENTATION","format":"CLASSIFICATION","context":"LOGISTICS","tested_point":"REVERSAL_FILE_EVIDENCE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS36.000016","review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §110","IAS 36 §111","IAS 36 §114","IAS 36 §115","IAS 36 §116"],"exercise":{"prompt":{"fr":"","en":"Case data: two years ago, a logistics provider impaired the automated sorting line of a warehouse (measured at cost). It is preparing the file supporting a possible reversal of that loss. Classify each item according to whether or not it can support the reversal.","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity looks for indications that a previous loss has decreased (IAS 36, para. 110), such as a favourable market change, a fall in rates of return affecting the discount rate, or internal reporting better than expected (IAS 36, para. 111). A reversal is only recognised if the estimates used to determine recoverable amount have changed (IAS 36, para. 114) — for example the cash flows or the rate (IAS 36, para. 115); I1 to I3 document such a change. Unwinding of the discount alone does not justify a reversal (IAS 36, para. 116), and neither a management intention nor developments in another business are a change in the estimates specific to the line.","es":""},"common_error":{"fr":"","en":"Relying on a mechanical increase in value in use due to the passage of time, although no estimate has changed.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SUPPORTS","text":{"fr":"","en":"Can support the reversal","es":""}},{"id":"DOES_NOT_SUPPORT","text":{"fr":"","en":"Does not, on its own, support the reversal","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A multi-year contract signed with a major retailer, built into the line's revised cash flow forecasts","es":""},"category":"SUPPORTS"},{"id":"I2","text":{"fr":"","en":"Internal reporting showing, for three quarters, sorted volumes above budget","es":""},"category":"SUPPORTS"},{"id":"I3","text":{"fr":"","en":"A fall in market rates of return, with the documented recalculation of the line's discount rate","es":""},"category":"SUPPORTS"},{"id":"I4","text":{"fr":"","en":"A value in use recalculated with unchanged cash flows and rate, higher only because the cash flows are closer in time","es":""},"category":"DOES_NOT_SUPPORT"},{"id":"I5","text":{"fr":"","en":"A memo from management wishing to improve the year's profit","es":""},"category":"DOES_NOT_SUPPORT"},{"id":"I6","text":{"fr":"","en":"The rise in the group's share price, driven by another division unrelated to the line","es":""},"category":"DOES_NOT_SUPPORT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000080","source":"V2","standard_id":"IAS36","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"SUBSEQUENT_MEASUREMENT_FULL_CASE","difficulty":"EXPERT","estimated_time_s":540,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"judgment"},"references":["IFRS 16 §32","IFRS 16 §33","IFRS 16 §36","IFRS 16 §37","IAS 36 §59","IFRS 16 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the injection moulding press lease and answer the questions.","es":""},"explanation":{"fr":"","en":"The two items live separately: the debt follows its schedule (IFRS 16, paras. 36-37), the asset its depreciation over the para. 32 period and, if there is an indication, the IAS 36 test (IFRS 16, para. 33).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a plastics processor leases an injection moulding press for 4 years, 4 payments of 90,000 at year end, incremental borrowing rate 5.5%. Liability at the commencement date: 315,463.51; initial direct costs 4,536.49; right-of-use asset 320,000. Useful life of the press: 7 years. No transfer of ownership; purchase option at market price, not reasonably certain. Assumption: straight-line depreciation. At the end of year 1, the processor's main customer announces it will stop ordering.","es":""},"parts":[{"prompt":{"fr":"","en":"Over what period should the right-of-use asset be depreciated?","es":""},"explanation":{"fr":"","en":"No transfer and no reasonably certain option: the earlier of the end of the useful life (7 years) and the end of the lease (4 years), i.e. 4 years (IFRS 16, para. 32).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4 years","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"7 years","es":""},"correct":false,"feedback":{"fr":"","en":"The useful life applies only if ownership transfers or a purchase option is reflected in cost.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Calculate the year 1 amounts (before any impairment test).","es":""},"explanation":{"fr":"","en":"Interest: 315,463.51 × 5.5% = 17,350.49; liability: 315,463.51 + 17,350.49 − 90,000 = 242,814.00 (IFRS 16, paras. 36 and 37). Depreciation: 320,000 / 4 = 80,000; carrying amount 240,000 (IFRS 16, paras. 30 and 32).","es":""},"common_error":{"fr":"","en":"Depreciating the right-of-use asset from the liability amount instead of its 320,000 cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability at the commencement date","es":""},"value":"315463.51","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"5.5","unit":"PERCENT"},{"label":{"fr":"","en":"Payment (year end)","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest year 1","es":""},"answer":17350.49,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Liability at end of year 1","es":""},"answer":242814,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Depreciation year 1","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount of the right-of-use asset at end of year 1","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":315463.51,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate","es":""},"value":5.5,"unit":"PERCENT"}],"result":17350.49,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Liability at end of year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":315463.51,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest year 1","es":""},"value":17350.49,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Payment (year end)","es":""},"value":90000,"unit":"EUR"}],"result":242814,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Depreciation year 1","es":""},"expression":"a / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":320000,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"references":["REF.IFRS16.32","REF.IFRS16.36","REF.IFRS16.37","REF.IFRS16.30"]}},{"prompt":{"fr":"","en":"If the impairment test leads to the right-of-use asset being written down to its recoverable amount of 180,000, the lease liability is reduced by the same 60,000.","es":""},"explanation":{"fr":"","en":"False. The loss of orders is an indication of impairment: IAS 36 applies to the right-of-use asset (IFRS 16, para. 33) and the 60,000 loss (240,000 − 180,000) reduces the asset (IAS 36, para. 59). The lease liability does not change: the payments are still owed (IFRS 16, para. 36).","es":""},"common_error":{"fr":"","en":"Reducing the lease liability by the impairment amount: only the asset's value falls; rents remain due.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000001","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000001","tested_point":"QST.IAS36.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? IAS 36 aims to ensure that no asset is shown in the statement of financial position at more than the amount the entity will recover from it, through use or through sale.","es":""},"explanation":{"fr":"","en":"True. This is the central objective of the standard: the amount at which an asset is carried must not exceed what its use or disposal will allow the entity to recover (IAS 36, para. 1).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000002","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000002","tested_point":"QST.IAS36.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? The objective of IAS 36 is to require all assets to be remeasured at fair value at each reporting date.","es":""},"explanation":{"fr":"","en":"False. IAS 36 does not aim to present assets at fair value: it aims to prevent an asset from being carried at more than its use or sale will allow the entity to recover. It also sets out when to recognise and reverse an impairment loss and which disclosures to provide (IAS 36, para. 1).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000003","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000003","tested_point":"QST.IAS36.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"A trainee auditor asks what IAS 36 is for on the balance sheet. Which answer should they be given?","es":""},"explanation":{"fr":"","en":"IAS 36 aims to ensure that no asset is carried at more than its use or sale would allow the entity to recover; it also defines when to recognise and reverse an impairment loss and the required disclosures (IAS 36, para. 1). Initial cost and depreciation are dealt with by other standards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Presenting each asset at fair value, so that the statement of financial position reflects the market value of the business.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not seek to present assets at fair value or to show the market value of the business.","es":""}},{"id":"B","text":{"fr":"","en":"Preventing an asset from being carried at more than the amount recoverable through its use or sale.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Setting the rules for determining the initial cost of acquired property, plant and equipment and intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial cost of non-current assets is not the subject of IAS 36.","es":""}},{"id":"D","text":{"fr":"","en":"Organising the systematic allocation of the cost of assets over their useful life through depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation is not the subject of the standard, which deals with the recoverable amount of assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000004","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000004","tested_point":"QST.IAS36.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? In addition to recognising impairment losses, IAS 36 specifies when an impairment loss must be reversed.","es":""},"explanation":{"fr":"","en":"True. The objective covers when an impairment loss is recognised, when it is reversed and the disclosures to provide (IAS 36, para. 1).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000005","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000005","tested_point":"QST.IAS36.000005","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"Which of the following matters is NOT part of what the objective of IAS 36 announces?","es":""},"explanation":{"fr":"","en":"The objective of IAS 36 announces three themes: when to recognise an impairment loss, when to reverse it and which disclosures to provide, in support of the principle that no asset is carried at more than its recoverable amount (IAS 36, para. 1). The choice of subsequent measurement model is not dealt with by this standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the entity must recognise an impairment loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition of an impairment loss is part of the objective: reread the question, which asks what is not.","es":""}},{"id":"B","text":{"fr":"","en":"When the entity must reverse an impairment loss already recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal of an impairment loss is part of the objective.","es":""}},{"id":"C","text":{"fr":"","en":"The choice between the cost model and the revaluation model.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The disclosures the entity must provide about impaired assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures are part of the objective of the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000006","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000006","tested_point":"QST.IAS36.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"True or false? As long as management intends to keep using an asset, IAS 36 allows it to remain in the statement of financial position at more than its use and sale would allow the entity to recover.","es":""},"explanation":{"fr":"","en":"False. The intention to keep the asset changes nothing: the standard specifically aims to ensure that no asset is carried at more than its use or sale would allow the entity to recover (IAS 36, para. 1).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000007","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000007","tested_point":"QST.IAS36.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"According to the objective of IAS 36, through which routes can the entity recover the amount of an asset?","es":""},"explanation":{"fr":"","en":"The objective of the standard refers to the amount that the use or sale of the asset will allow the entity to recover: both routes are taken into account (IAS 36, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Through its use or through its sale.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only through its use in the business until the end of its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Use is only one of the two recovery routes considered.","es":""}},{"id":"C","text":{"fr":"","en":"Only through its sale in an active market at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Sale is only one of the two recovery routes considered.","es":""}},{"id":"D","text":{"fr":"","en":"Solely through recovering its historical cost, whatever its future profitability.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost does not measure what the asset will allow the entity to recover.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000008","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000008","tested_point":"QST.IAS36.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"objective-rule"},"references":["IAS 36 §1"],"exercise":{"prompt":{"fr":"","en":"Valtorre Ltd holds a press carried at EUR 500,000. Analyses show that it will at best recover EUR 380,000, through use or through sale. Which statement is consistent with the objective of IAS 36?","es":""},"explanation":{"fr":"","en":"The statement of financial position would overstate the press if it were kept at EUR 500,000 when the entity can only recover EUR 380,000 from it. This is the situation the standard aims to prevent: no asset may be carried at more than its use or sale will allow the entity to recover (IAS 36, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The press can remain at EUR 500,000, since this amount results from correct accounting at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A cost that was correctly recognised initially can become non-recoverable: this is precisely what the standard addresses.","es":""}},{"id":"B","text":{"fr":"","en":"The press must not remain in the statement of financial position at more than it will allow the entity to recover.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The press must be revalued to fair value, even if this fair value exceeds EUR 500,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not lead to carrying the asset above its carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"The difference will only be dealt with when the press is actually sold, on derecognition.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the sale would leave the statement of financial position overstated in the meantime, contrary to the objective of the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000009","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000009","tested_point":"QST.IAS36.000009","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"True or false? The inventories of a manufacturing entity are subject to the IAS 36 impairment test.","es":""},"explanation":{"fr":"","en":"False. Inventories are among the assets excluded from the scope of IAS 36, because their measurement is governed by another standard (IAS 36, para. 2).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000010","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000010","tested_point":"QST.IAS36.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §4"],"exercise":{"prompt":{"fr":"","en":"True or false? An investment in an associate falls under IAS 36 for impairment, even though it is a financial asset.","es":""},"explanation":{"fr":"","en":"True. IAS 36 applies to the financial assets that are investments in subsidiaries, associates and joint ventures; impairment of other financial assets is governed by IFRS 9 (IAS 36, para. 4).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000011","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000011","tested_point":"QST.IAS36.000011","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2","IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"True or false? An investment property measured at fair value must, when there is an indication, be tested for impairment under IAS 36.","es":""},"explanation":{"fr":"","en":"False. Investment property measured at fair value is excluded from the scope of IAS 36 (IAS 36, para. 2 and 5). Its measurement is governed by its own standard, not by the impairment test.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000012","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000012","tested_point":"QST.IAS36.000012","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"True or false? A building accounted for under the revaluation model of another standard remains within the scope of IAS 36.","es":""},"explanation":{"fr":"","en":"True. While IFRS 9 financial assets, investment property and biological assets measured at fair value are excluded, assets revalued under other standards remain subject to IAS 36 (IAS 36, para. 5).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000013","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000013","tested_point":"QST.IAS36.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"Brenvel Ltd reports the following assets. Which one falls within the scope of the IAS 36 impairment test?","es":""},"explanation":{"fr":"","en":"Inventories, deferred tax assets and financial assets within the scope of IFRS 9 are excluded from IAS 36, because other standards govern their measurement or impairment (IAS 36, para. 2). The warehouse used in the business belongs to none of these excluded categories: it falls under IAS 36.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The logistics warehouse used in the business, carried at cost.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Finished goods awaiting delivery to customers, recognised as inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Inventories are excluded from the scope of IAS 36.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset relating to tax losses carried forward.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax assets are excluded from the scope of IAS 36.","es":""}},{"id":"D","text":{"fr":"","en":"Trade receivables, financial assets within the scope of IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"Financial assets within the scope of IFRS 9 are excluded from IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000014","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000014","tested_point":"QST.IAS36.000014","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §3","IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"Why are assets such as inventories or deferred tax assets excluded from the scope of IAS 36?","es":""},"explanation":{"fr":"","en":"The assets listed as exclusions (IAS 36, para. 2) are left out because the standards that apply to them already contain their own recognition and measurement requirements (IAS 36, para. 3). It is neither an absence of loss risk nor a materiality threshold.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because these assets can never lose value, whatever the entity's situation.","es":""},"correct":false,"feedback":{"fr":"","en":"These assets can lose value; their own standard deals with it.","es":""}},{"id":"B","text":{"fr":"","en":"Because they are always presented at market value, updated at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion does not rest on systematic measurement at market value.","es":""}},{"id":"C","text":{"fr":"","en":"Because the standards governing them already contain their own recognition and measurement requirements.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because their amount is usually too small to justify an impairment test.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion does not rest on any amount threshold.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000015","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000015","tested_point":"QST.IAS36.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"Orlenne Ltd accounts for land under the revaluation model; the direct costs that a disposal would trigger are negligible. Which conclusion does IAS 36 allow it to draw?","es":""},"explanation":{"fr":"","en":"A revalued asset remains within the scope of IAS 36. Since the difference between its fair value and its fair value less costs of disposal is only the direct costs of disposal, a revalued asset whose disposal costs are negligible has little risk of being impaired (IAS 36, para. 5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The land falls outside the scope of IAS 36, since it is already measured at fair value at each revaluation.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation does not take the asset outside the scope: IAS 36 still applies.","es":""}},{"id":"B","text":{"fr":"","en":"The land requires a full value in use calculation at each reporting date, without exception.","es":""},"correct":false,"feedback":{"fr":"","en":"When disposal costs are negligible, the standard on the contrary stresses that the risk of impairment is low.","es":""}},{"id":"C","text":{"fr":"","en":"The land remains within the scope of IAS 36, but the risk of it being impaired is low.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Any future decline in the fair value of the land will necessarily be recognised under IAS 36.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not say this: it only notes that the risk of impairment is low when disposal costs are negligible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000016","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000016","tested_point":"QST.IAS36.000016","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"Which of the following assets are excluded from the scope of IAS 36? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"Inventories, deferred tax assets and non-current assets held for sale are among the exclusions, because other standards govern their measurement (IAS 36, para. 2). Goodwill and an acquired patent carried at cost are not covered by any exclusion: they fall under IAS 36.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill acquired in a business combination.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not covered by any exclusion: it falls under IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"Raw material inventories.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An acquired patent carried at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"An acquired patent carried at cost is not covered by any exclusion.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A non-current asset classified as held for sale.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000017","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000017","tested_point":"QST.IAS36.000017","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2","IAS 36 §4","IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"The Castelmar group reviews the assets in its statement of financial position. Which of them fall under IAS 36 for impairment? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"Receivables within the scope of IFRS 9, contract assets and assets arising from employee benefits are excluded from the scope (IAS 36, para. 2). By contrast, an investment in a joint venture is a financial asset kept within the scope of IAS 36 (IAS 36, para. 4), and an asset revalued under another standard remains subject to it (IAS 36, para. 5).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Trade receivables within the scope of IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"Financial assets within the scope of IFRS 9 are excluded: their impairment follows IFRS 9.","es":""}},{"id":"B","text":{"fr":"","en":"An investment in a joint venture.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Contract assets arising from contracts with customers.","es":""},"correct":false,"feedback":{"fr":"","en":"Contract assets are excluded from the scope of IAS 36.","es":""}},{"id":"D","text":{"fr":"","en":"An owner-occupied building accounted for under the revaluation model.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Assets arising from employee benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"Assets arising from employee benefits are excluded from the scope of IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000018","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000018","tested_point":"QST.IAS36.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §4","IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Ardenvale Ltd holds: an investment in its subsidiary Corvel, a portfolio of bonds within the scope of IFRS 9 and a batch of goods held in inventory. Indications suggest that all three assets have lost value. Which of these assets must Ardenvale examine under IAS 36?","es":""},"explanation":{"fr":"","en":"An investment in a subsidiary is a financial asset explicitly kept within the scope of IAS 36 (IAS 36, para. 4). Bonds within the scope of IFRS 9 and inventories are excluded, their impairment or measurement being governed by other standards (IAS 36, para. 2). The existence of indications does not change the scope.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All three assets, since there are indications of impairment for each of them.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication does not bring an excluded asset within the scope of IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"The investment in Corvel only.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The bond portfolio and the investment, which are both financial assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Impairment of financial assets other than investments in subsidiaries, associates and joint ventures is governed by IFRS 9.","es":""}},{"id":"D","text":{"fr":"","en":"None of them, since IAS 36 never applies to financial assets or inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"Investments in subsidiaries are precisely financial assets kept within the scope of IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000019","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000019","tested_point":"QST.IAS36.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §5"],"exercise":{"prompt":{"fr":"","en":"Mirabeau Ltd accounts for an owner-occupied building under the revaluation model, at a revalued amount of EUR 900,000. The direct costs of disposing of it would be significant (EUR 40,000). Management estimates the building's value in use at EUR 860,000. Which analysis is consistent with IAS 36?","es":""},"explanation":{"fr":"","en":"A revalued asset remains within the scope of IAS 36. When the costs of disposal are not negligible, fair value less costs of disposal is lower than fair value, and the asset is impaired if its value in use is below the revalued amount (IAS 36, para. 5). Here, the value in use of EUR 860,000 is below the revalued amount of EUR 900,000: the building is impaired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The building is outside the scope of IAS 36, since it is already measured under the revaluation model.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation does not take the asset outside the scope of IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"The building cannot be impaired, since its revalued amount reflects its fair value at the revaluation date.","es":""},"correct":false,"feedback":{"fr":"","en":"A revalued asset can be impaired when its costs of disposal are not negligible.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 36 applies and the building is impaired, because the costs of disposal are not negligible and its value in use is below the revalued amount.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IAS 36 only applies if the costs of disposal exceed 10% of the revalued amount, which is not the case here.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold of this kind: this threshold is invented.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000020","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000020","tested_point":"QST.IAS36.000020","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2"],"exercise":{"prompt":{"fr":"","en":"Fenmoor Ltd has classified a former production site as a non-current asset held for sale. What does IAS 36 provide for this asset?","es":""},"explanation":{"fr":"","en":"Non-current assets classified as held for sale are among the exclusions from the scope of IAS 36; another standard governs their measurement (IAS 36, para. 2).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It must be tested every year under IAS 36, like goodwill, until it is actually sold.","es":""},"correct":false,"feedback":{"fr":"","en":"This asset is not subject to the annual test: it is excluded from the scope of IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"It remains subject to IAS 36 until the sale is completed, since it is a tangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification as held for sale takes the asset outside the scope, even if it is tangible.","es":""}},{"id":"C","text":{"fr":"","en":"It falls under IAS 36 only if its carrying amount exceeds the sale price expected by management.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion does not depend on a comparison between carrying amount and expected price.","es":""}},{"id":"D","text":{"fr":"","en":"It is excluded from the scope of IAS 36, its measurement being governed by another standard.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000021","standard_id":"IAS36","concept_ids":["IAS36.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000021","tested_point":"QST.IAS36.000021","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000001","section_id":"scope-rule"},"references":["IAS 36 §2","IAS 36 §3"],"exercise":{"prompt":{"fr":"","en":"True or false? Contract assets and costs to obtain or fulfil contracts with customers are not tested under IAS 36.","es":""},"explanation":{"fr":"","en":"True. These assets are among the exclusions from the scope of IAS 36 (IAS 36, para. 2), because the standard governing them already contains its own requirements (IAS 36, para. 3).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000022","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000022","tested_point":"QST.IAS36.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"True or false? The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use.","es":""},"explanation":{"fr":"","en":"True. Recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 6). The entity thus takes the better of the two recovery routes: selling the asset or continuing to use it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000023","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000023","tested_point":"QST.IAS36.000023","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"True or false? An impairment loss is the amount by which the recoverable amount of an asset exceeds its carrying amount.","es":""},"explanation":{"fr":"","en":"False. It is the reverse: an impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount (IAS 36, para. 6). A recoverable amount above the carrying amount reveals no loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000024","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000024","tested_point":"QST.IAS36.000024","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Which definition matches carrying amount as used in IAS 36?","es":""},"explanation":{"fr":"","en":"Carrying amount is the amount at which the asset is recognised, after deducting accumulated depreciation and accumulated impairment losses (IAS 36, para. 6). It differs from fair value (market view) and from value in use (entity-specific discounted cash flows).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount at which the asset is recognised, after deducting accumulated depreciation and accumulated impairment losses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The price the entity would obtain by selling the asset at the reporting date, between market participants.","es":""},"correct":false,"feedback":{"fr":"","en":"A selling price between market participants refers to fair value.","es":""}},{"id":"C","text":{"fr":"","en":"The historical acquisition cost of the asset, without any deduction since its initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amount takes accumulated depreciation and impairment losses into account.","es":""}},{"id":"D","text":{"fr":"","en":"The present value of the future cash flows expected from using the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This description is that of value in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000025","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000025","tested_point":"QST.IAS36.000025","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Which of these descriptions matches value in use?","es":""},"explanation":{"fr":"","en":"Value in use is the present value of the future cash flows expected to be derived from an asset or a cash-generating unit (IAS 36, para. 6). It reflects the entity's own expectations, whereas fair value less costs of disposal reflects the view of market participants.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The present value of the future cash flows the entity expects to derive from the asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of the asset in the statement of financial position, net of accumulated depreciation and accumulated impairment losses at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This description is that of carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"The price that would be received to sell the asset in an orderly transaction between market participants, less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"This description matches fair value less costs of disposal, not value in use.","es":""}},{"id":"D","text":{"fr":"","en":"The cost of replacing the asset with a new asset of equivalent capacity at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement cost is not part of the definition of value in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000026","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000026","tested_point":"QST.IAS36.000026","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Quaranne Ltd is planning to sell a machine. Which of these items is a cost of disposal as defined in IAS 36?","es":""},"explanation":{"fr":"","en":"Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense (IAS 36, para. 6). Legal fees and dismantling linked to the sale are incremental costs; a share of head office overheads is not incurred because of the sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Interest on the loan that financed the purchase of the machine, accrued up to the date of sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Finance costs are excluded from costs of disposal.","es":""}},{"id":"B","text":{"fr":"","en":"The income tax expense on the gain that the sale might generate.","es":""},"correct":false,"feedback":{"fr":"","en":"Income tax expense is excluded from costs of disposal.","es":""}},{"id":"C","text":{"fr":"","en":"Legal fees and dismantling costs directly related to the sale of the machine.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A share of head office overheads, spread over all the assets of the site.","es":""},"correct":false,"feedback":{"fr":"","en":"A share of overheads is not an incremental cost incurred because of the sale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000027","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000027","tested_point":"QST.IAS36.000027","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"True or false? The value in use of an asset is determined using the assumptions that market participants would adopt, regardless of the entity's own expectations.","es":""},"explanation":{"fr":"","en":"False. Value in use is the present value of the future cash flows the entity expects from the asset: it rests on entity-specific cash flows (IAS 36, para. 6). The view of market participants is that of fair value, whose definition refers to IFRS 13.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000028","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000028","tested_point":"QST.IAS36.000028","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Which definition matches a cash-generating unit (CGU)?","es":""},"explanation":{"fr":"","en":"A CGU is the smallest identifiable group of assets generating cash inflows that are largely independent of those from other assets or groups of assets (IAS 36, para. 6). The test is the independence of cash inflows, not internal organisation, legal structure or goodwill monitoring.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Any division of the entity monitored by management and having its own budget, whatever the source of its cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Budget monitoring is not enough: the test is the independence of cash inflows.","es":""}},{"id":"B","text":{"fr":"","en":"The largest grouping of assets within which goodwill can be monitored by management.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition refers to the smallest identifiable group, not the largest, and does not rest on goodwill monitoring.","es":""}},{"id":"C","text":{"fr":"","en":"All the assets of a legal entity, consolidated at the level of the group to which it belongs.","es":""},"correct":false,"feedback":{"fr":"","en":"A whole legal entity is not, by definition, a CGU.","es":""}},{"id":"D","text":{"fr":"","en":"The smallest identifiable group of assets that generates cash inflows that are largely independent of those from other assets or groups of assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000029","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000029","tested_point":"QST.IAS36.000029","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Hauterive Ltd operates three plants, each a cash-generating unit, and an IT centre that serves all three plants. How should the IT centre be described under IAS 36?","es":""},"explanation":{"fr":"","en":"Corporate assets are assets, other than goodwill, that contribute to the future cash flows of both the cash-generating unit under review and other units (IAS 36, para. 6). The IT centre, which serves the three plants without generating independent cash inflows, is an example.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a fourth cash-generating unit, since it is an identifiable group of assets.","es":""},"correct":false,"feedback":{"fr":"","en":"A CGU generates largely independent cash inflows, which is not the case for the IT centre.","es":""}},{"id":"B","text":{"fr":"","en":"As part of goodwill, since it does not generate cash inflows of its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is expressly distinct from corporate assets.","es":""}},{"id":"C","text":{"fr":"","en":"As a corporate asset, because it contributes to the future cash flows of several cash-generating units.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As an asset outside the scope of IAS 36, since it has no independent cash inflows.","es":""},"correct":false,"feedback":{"fr":"","en":"Having no cash inflows of its own does not take the asset outside the scope of IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000030","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000030","tested_point":"QST.IAS36.000030","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the carrying amount of a depreciable asset are correct? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"Carrying amount is the amount at which the asset is recognised after deducting accumulated depreciation and accumulated impairment losses (IAS 36, para. 6). It is neither a fair value nor an amount including costs of disposal.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It equals the fair value of the asset at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amount is not fair value: it is a recognised amount, net of the accumulated amounts.","es":""}},{"id":"B","text":{"fr":"","en":"It is reduced by accumulated depreciation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It includes the costs of disposal the entity would bear on a sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Costs of disposal are used to compute fair value less costs of disposal, not carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"It is reduced by the accumulated impairment losses already recognised.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000031","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000031","tested_point":"QST.IAS36.000031","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements correctly distinguish value in use from fair value less costs of disposal? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"Value in use is the present value of the future cash flows the entity expects from the asset; fair value, defined by reference to IFRS 13, takes the view of market participants, and costs of disposal are deducted from it. Recoverable amount is the higher of the two amounts (IAS 36, para. 6).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Value in use rests on the cash flows the entity itself expects from the asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Value in use is the market price of the asset, less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"You are describing fair value less costs of disposal, not value in use.","es":""}},{"id":"C","text":{"fr":"","en":"Fair value, from which costs of disposal are deducted, is defined by reference to IFRS 13 and takes the view of market participants.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Value in use and fair value less costs of disposal are two names for the same amount.","es":""},"correct":false,"feedback":{"fr":"","en":"They are two distinct measures, which can give different amounts.","es":""}},{"id":"E","text":{"fr":"","en":"Recoverable amount is the average of value in use and fair value less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Recoverable amount is the higher of the two amounts, not their average.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000032","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000032","tested_point":"QST.IAS36.000032","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"True or false? The depreciable amount of an asset is its cost, or the amount substituted for cost in the financial statements, less its residual value.","es":""},"explanation":{"fr":"","en":"True. Depreciable amount is the cost of the asset, or another amount substituted for cost, less its residual value; depreciation allocates it systematically over the useful life (IAS 36, para. 6).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000033","standard_id":"IAS36","concept_ids":["IAS36.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000033","tested_point":"QST.IAS36.000033","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000002","section_id":"definitions"},"references":["IAS 36 §6"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Lornac Ltd holds a bottling line with a carrying amount of EUR 1,000,000. Its fair value less costs of disposal is EUR 850,000 and its value in use EUR 920,000. What is the recoverable amount of the line?","es":""},"explanation":{"fr":"","en":"Recoverable amount is the higher of fair value less costs of disposal (EUR 850,000) and value in use (EUR 920,000), i.e. EUR 920,000 (IAS 36, para. 6). The carrying amount of EUR 1,000,000 exceeds this recoverable amount by EUR 80,000: this amount is the impairment loss, not the recoverable amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"EUR 850,000, since the more prudent of the two amounts must be used.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition uses the higher of the two amounts, not the lower.","es":""}},{"id":"B","text":{"fr":"","en":"EUR 1,000,000, since the carrying amount is the reference as long as the line is in use.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amount is the amount compared with recoverable amount; it does not replace it.","es":""}},{"id":"C","text":{"fr":"","en":"EUR 920,000, the higher of fair value less costs of disposal and value in use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"EUR 80,000, the difference between carrying amount and value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"This amount is the impairment loss, which results from the comparison, not the recoverable amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000034","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000034","tested_point":"QST.IAS36.000034","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §8"],"exercise":{"prompt":{"fr":"","en":"True or false? An asset is impaired when its carrying amount exceeds its recoverable amount.","es":""},"explanation":{"fr":"","en":"True. This is the very condition of impairment: an asset is impaired as soon as its carrying amount exceeds its recoverable amount (IAS 36, para. 8).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000035","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000035","tested_point":"QST.IAS36.000035","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"True or false? At each reporting date, the entity must estimate the recoverable amount of all its property, plant and equipment, whether or not there is an indication of impairment.","es":""},"explanation":{"fr":"","en":"False. At each reporting date, the entity assesses whether there is any indication of impairment; only when such an indication exists does it estimate the recoverable amount of the asset (IAS 36, para. 9).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000036","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000036","tested_point":"QST.IAS36.000036","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"What must an entity do at each reporting date for its assets within the scope of IAS 36 (other than assets subject to an annual test)?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity assesses whether there is any indication that an asset may be impaired; if so, it estimates its recoverable amount (IAS 36, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assess whether there is any indication of impairment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Compute the value in use of each asset and compare it with its carrying amount, even without an indication.","es":""},"correct":false,"feedback":{"fr":"","en":"A systematic calculation is not required: the estimate follows the detection of an indication.","es":""}},{"id":"C","text":{"fr":"","en":"Have an external valuation performed of all the assets in the statement of financial position, at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require any systematic external valuation.","es":""}},{"id":"D","text":{"fr":"","en":"Nothing, as long as the asset is depreciated systematically over its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation does not remove the need to look for indications at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000037","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000037","tested_point":"QST.IAS36.000037","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §17"],"exercise":{"prompt":{"fr":"","en":"True or false? An indication of impairment may lead the entity to review the useful life, depreciation method or residual value of an asset, even if no impairment loss is ultimately recognised.","es":""},"explanation":{"fr":"","en":"True. An indication may signal that the remaining useful life, the depreciation method or the residual value needs to be reviewed and adjusted, even when no impairment loss is recognised (IAS 36, para. 17).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000038","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000038","tested_point":"QST.IAS36.000038","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9","IAS 36 §8"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Pellmont Ltd identifies an indication of impairment on one of its warehouses. What is the immediate consequence under IAS 36?","es":""},"explanation":{"fr":"","en":"When an indication exists, the entity estimates the recoverable amount of the asset (IAS 36, para. 9). Only if the carrying amount exceeds this recoverable amount is the asset impaired (IAS 36, para. 8). An indication alone therefore does not justify an impairment loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognising a flat-rate impairment loss equal to 10% of the warehouse's carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication does not trigger an automatic loss, and the standard provides for no flat-rate reduction.","es":""}},{"id":"B","text":{"fr":"","en":"Waiting for the next reporting date to see whether the indication is confirmed before acting.","es":""},"correct":false,"feedback":{"fr":"","en":"The estimate is required at the reporting date at which the indication exists, without waiting.","es":""}},{"id":"C","text":{"fr":"","en":"Estimating the recoverable amount of the warehouse.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Writing the warehouse down directly to fair value, without further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is with recoverable amount, which is not necessarily fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000039","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000039","tested_point":"QST.IAS36.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9","IAS 36 §8","IAS 36 §17"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X2, Corbière Ltd identifies an indication of impairment on a packaging line (carrying amount: EUR 420,000). It estimates its recoverable amount at EUR 455,000. The analysis also shows that the line will be replaced earlier than planned. What should Corbière do?","es":""},"explanation":{"fr":"","en":"The indication requires the recoverable amount to be estimated (IAS 36, para. 9). Since the carrying amount of EUR 420,000 does not exceed the recoverable amount of EUR 455,000, the line is not impaired (IAS 36, para. 8). The indication may however signal that the remaining useful life, depreciation method or residual value should be reviewed, even without a recognised loss (IAS 36, para. 17): the early replacement of the line points in that direction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise an impairment loss, since an indication was identified at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication is not enough: a loss exists only if the carrying amount exceeds the recoverable amount.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no impairment loss, but consider whether the remaining useful life, depreciation method or residual value of the line should be reviewed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Increase the carrying amount of the line to its recoverable amount of EUR 455,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not lead to carrying the asset above its carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"Do nothing further, since the recoverable amount covers the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The indication may also call for a review of the depreciation parameters, especially given an early replacement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000040","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000040","tested_point":"QST.IAS36.000040","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Ravelin Ltd reviews an assembly line carried at cost and depreciated over 10 years. Its documented analysis reveals no indication of impairment. The finance director nevertheless wants the value in use of the line to be calculated. Which statement is correct?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity assesses whether there is any indication; it estimates recoverable amount only when an indication exists (IAS 36, para. 9). Without an indication, nothing requires the value in use of the line to be calculated, but the assessment must be repeated at each reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 36 requires the value in use of the line to be calculated, since the test is annual for all assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test without an indication does not apply to a depreciated item of property, plant and equipment: recoverable amount is estimated only when there is an indication.","es":""}},{"id":"B","text":{"fr":"","en":"In the absence of an indication, the line must be moved outside the scope of IAS 36 until the next reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an indication does not take the asset outside the scope of IAS 36.","es":""}},{"id":"C","text":{"fr":"","en":"In the absence of an indication, IAS 36 does not require the recoverable amount of the line to be estimated; the assessment of indications must be repeated at the next reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The absence of an indication means no further indications need to be sought for this line until the end of its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Looking for indications must be repeated at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000041","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000041","tested_point":"QST.IAS36.000041","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §8","IAS 36 §9","IAS 36 §17"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about assessing impairment are correct? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"An asset is impaired when its carrying amount exceeds its recoverable amount (IAS 36, para. 8). The entity assesses at each reporting date whether there is any indication and, only in that case, estimates the recoverable amount (IAS 36, para. 9). An indication may also lead to a review of the useful life, depreciation method or residual value, even without a recognised loss (IAS 36, para. 17).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An indication of impairment is enough to recognise an impairment loss, without further calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication triggers an estimate of recoverable amount, not an automatic loss.","es":""}},{"id":"B","text":{"fr":"","en":"Whether an indication exists is assessed at each reporting date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An asset is impaired if its carrying amount exceeds its recoverable amount.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In the absence of an indication, the entity must still estimate the recoverable amount of all its assets every year.","es":""},"correct":false,"feedback":{"fr":"","en":"Without an indication, the estimate is not required for these assets.","es":""}},{"id":"E","text":{"fr":"","en":"An indication may justify reviewing the residual value of an asset even if no impairment loss is recognised.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000042","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000042","tested_point":"QST.IAS36.000042","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §8"],"exercise":{"prompt":{"fr":"","en":"Tamaris Ltd holds a truck with a carrying amount of EUR 60,000 and a recoverable amount of EUR 54,000. What can be concluded?","es":""},"explanation":{"fr":"","en":"An asset is impaired when its carrying amount exceeds its recoverable amount (IAS 36, para. 8). Here, EUR 60,000 exceeds EUR 54,000: the truck is impaired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The truck is not impaired, since its recoverable amount is positive.","es":""},"correct":false,"feedback":{"fr":"","en":"A positive recoverable amount does not prevent impairment: what matters is the comparison with the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Nothing can be concluded until the truck has been sold.","es":""},"correct":false,"feedback":{"fr":"","en":"Impairment is assessed at the reporting date, without waiting for the sale.","es":""}},{"id":"C","text":{"fr":"","en":"The truck is impaired only if its fair value is below EUR 54,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is with the recoverable amount already known, not with fair value alone.","es":""}},{"id":"D","text":{"fr":"","en":"The truck is impaired, because its carrying amount exceeds its recoverable amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000043","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000043","tested_point":"QST.IAS36.000043","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §7","IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"True or false? The requirements that determine when recoverable amount must be estimated apply both to an individual asset and to a cash-generating unit.","es":""},"explanation":{"fr":"","en":"True. The requirements on when recoverable amount is estimated refer to an asset, but apply equally to a cash-generating unit, with additional requirements for CGUs and goodwill (IAS 36, para. 7). Thus, when an indication exists, the entity estimates recoverable amount (IAS 36, para. 9).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000044","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000044","tested_point":"QST.IAS36.000044","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"For the 31 December 20X2 reporting date, the management accountant of Belvarde Ltd proposes to stop examining indications of impairment for its property, plant and equipment: in his view, these assets are depreciated and no loss has ever been recognised. How should this proposal be answered?","es":""},"explanation":{"fr":"","en":"The entity must assess at each reporting date whether there is any indication of impairment and, if so, estimate the recoverable amount of the asset (IAS 36, para. 9). Neither history nor depreciation removes the need for this assessment; conversely, a systematic estimate of the recoverable amount of all assets is not required.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept it, since a history without impairment losses removes the need to assess indications.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of past losses does not remove the need for the assessment at each reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"Accept it, but only for assets whose carrying amount is below an internal threshold set by management.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no internal threshold allowing the assessment of indications to be skipped.","es":""}},{"id":"C","text":{"fr":"","en":"Reject it and estimate the recoverable amount of each item at every reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer goes too far: recoverable amount is estimated only when an indication exists.","es":""}},{"id":"D","text":{"fr":"","en":"Reject it: whether indications exist must be assessed at each reporting date, recoverable amount being estimated only when an indication exists.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000045","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000045","tested_point":"QST.IAS36.000045","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"assessment-rule"},"references":["IAS 36 §8","IAS 36 §9"],"exercise":{"prompt":{"fr":"","en":"Ombrelle Ltd is preparing its annual reporting. Which of the following steps reflect what IAS 36 requires for a depreciated item of property, plant and equipment? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity looks for any indication; if there is one, it estimates the recoverable amount (IAS 36, para. 9), and the asset is impaired if its carrying amount exceeds that recoverable amount (IAS 36, para. 8). Depreciation is not an impairment loss, and the estimate is not limited to assets put up for sale.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognising an impairment loss as soon as the carrying amount falls through depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"The fall in carrying amount through depreciation is not an impairment loss.","es":""}},{"id":"B","text":{"fr":"","en":"Looking, at the reporting date, for any indication of impairment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Estimating recoverable amount only when the asset is put up for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The estimate is triggered by an indication, not by putting the asset up for sale.","es":""}},{"id":"D","text":{"fr":"","en":"If an indication exists, estimating the recoverable amount and comparing it with the carrying amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000046","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000046","tested_point":"QST.IAS36.000046","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"True or false? Goodwill acquired in a business combination is tested for impairment every year, even if there is no indication of impairment.","es":""},"explanation":{"fr":"","en":"True. Irrespective of any indication, goodwill acquired in a business combination is subject to an annual impairment test (IAS 36, para. 10).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000047","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000047","tested_point":"QST.IAS36.000047","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"True or false? An intangible asset with an indefinite useful life is tested only if an indication of impairment arises at the reporting date.","es":""},"explanation":{"fr":"","en":"False. Even without an indication, an intangible asset with an indefinite useful life is tested for impairment annually, by comparing its carrying amount with its recoverable amount (IAS 36, para. 10).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000048","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000048","tested_point":"QST.IAS36.000048","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Which of the following assets must be tested for impairment annually even if there is no indication? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"The annual test without an indication covers three categories: intangible assets with an indefinite useful life, intangible assets not yet available for use and goodwill acquired in a business combination (IAS 36, para. 10). A depreciated building and a patent with a finite useful life are tested only when there is an indication.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An office building used by the entity and depreciated over 40 years.","es":""},"correct":false,"feedback":{"fr":"","en":"A depreciated building is tested only when there is an indication.","es":""}},{"id":"B","text":{"fr":"","en":"An acquired brand with an indefinite useful life.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Internally developed software that is not yet available for use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An acquired patent amortised over its useful life of 8 years.","es":""},"correct":false,"feedback":{"fr":"","en":"A patent amortised over a finite useful life is tested only when there is an indication.","es":""}},{"id":"E","text":{"fr":"","en":"Goodwill acquired in a business combination.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000049","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000049","tested_point":"QST.IAS36.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Granvel Ltd, whose reporting date is 31 December, holds a brand with an indefinite useful life. When may it perform the annual impairment test of this brand?","es":""},"explanation":{"fr":"","en":"The annual test of an intangible asset with an indefinite useful life may be performed at any time during the annual period, provided it is performed at the same time every year (IAS 36, para. 10).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At any time during the annual period, provided it is performed at the same time every year.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Necessarily on 31 December, the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not required: the test may be performed at any time during the year.","es":""}},{"id":"C","text":{"fr":"","en":"On any date, chosen freely from one year to the next depending on the workload.","es":""},"correct":false,"feedback":{"fr":"","en":"The date can be chosen, but it must be the same every year.","es":""}},{"id":"D","text":{"fr":"","en":"Only when management approves a new multi-year budget.","es":""},"correct":false,"feedback":{"fr":"","en":"The test date is not linked to the approval of a budget.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000050","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000050","tested_point":"QST.IAS36.000050","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"True or false? When an intangible asset with an indefinite useful life was first recognised during the current annual period, it must be tested before the end of that period.","es":""},"explanation":{"fr":"","en":"True. If the intangible asset was initially recognised during the current annual period, the impairment test must be performed before the end of that period (IAS 36, para. 10).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000051","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000051","tested_point":"QST.IAS36.000051","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §11","IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 36 require an annual test for an intangible asset that is not yet available for use?","es":""},"explanation":{"fr":"","en":"The annual test of intangible assets not yet available for use (IAS 36, para. 10) is justified by the greater uncertainty about their ability to generate sufficient future economic benefits to recover their carrying amount (IAS 36, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because this asset is not yet amortised and the test replaces amortisation until it is available for use.","es":""},"correct":false,"feedback":{"fr":"","en":"The test does not replace amortisation: it responds to greater uncertainty about recovering the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Because this asset is presumed impaired until it has generated its first cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"No presumption of impairment is made: recoverable amount is compared with carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"Because the cost of an asset under development is by nature easier to measure reliably.","es":""},"correct":false,"feedback":{"fr":"","en":"The rationale concerns the uncertainty of future benefits, not the reliability of cost measurement.","es":""}},{"id":"D","text":{"fr":"","en":"Because its ability to generate sufficient future economic benefits to recover its carrying amount is more uncertain.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000052","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000052","tested_point":"QST.IAS36.000052","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10","IAS 36 §11"],"exercise":{"prompt":{"fr":"","en":"Sorélia Ltd has capitalised EUR 750,000 of development expenditure for a software platform that will not be available for use until 20X3. At 31 December 20X2, no indication of impairment has been identified and the project is on schedule. What does IAS 36 require?","es":""},"explanation":{"fr":"","en":"An intangible asset not yet available for use is tested every year, even without an indication (IAS 36, para. 10), because of the greater uncertainty about its ability to generate sufficient future benefits (IAS 36, para. 11). Being on schedule does not remove the need for the test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The platform must be tested during 20X2 despite the absence of an indication, since it is not yet available for use.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No test is required in 20X2, since no indication has been identified and the project is on schedule.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an indication does not remove the annual test for an intangible asset not yet available for use.","es":""}},{"id":"C","text":{"fr":"","en":"The test will only take place once the platform is available for use, when its amortisation begins.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test applies precisely before the asset is available for use.","es":""}},{"id":"D","text":{"fr":"","en":"The platform is excluded from IAS 36 until it is available for use, since its cash flows cannot yet be observed.","es":""},"correct":false,"feedback":{"fr":"","en":"Such an asset is not excluded from the scope: it is even subject to an annual test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000053","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000053","tested_point":"QST.IAS36.000053","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"Valdorine Ltd has a 31 December reporting date. Every year it tests a licence with an indefinite useful life on 30 June. On 1 October 20X1, it acquires a second licence, also with an indefinite useful life. There is no indication of impairment at 31 December 20X1. Which analysis is consistent with IAS 36?","es":""},"explanation":{"fr":"","en":"The annual test may be performed at any time during the annual period, provided it is performed at the same time every year; an intangible asset recognised during the period must be tested before the end of that period (IAS 36, para. 10). The first licence can therefore still be tested on 30 June, while the second, acquired on 1 October 20X1, must be tested before 31 December 20X1.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The first licence must now be tested on 31 December, so that both licences are tested on the same date.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires the testing date of the first licence to be changed: it is enough that this test is performed at the same time every year.","es":""}},{"id":"B","text":{"fr":"","en":"The second licence need not be tested before 30 June 20X2, Valdorine's usual testing date.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset recognised during the period must be tested before the end of that period.","es":""}},{"id":"C","text":{"fr":"","en":"Testing the first licence on 30 June is acceptable; the second licence must be tested before 31 December 20X1.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Neither licence needs to be tested in 20X1, since there is no indication of impairment.","es":""},"correct":false,"feedback":{"fr":"","en":"These licences with an indefinite useful life are tested every year, even without an indication.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000054","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000054","tested_point":"QST.IAS36.000054","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"For which of these assets is an impairment test required every year, whether or not there is an indication?","es":""},"explanation":{"fr":"","en":"Goodwill acquired in a business combination is tested every year, even without an indication (IAS 36, para. 10). Depreciated vehicles and a licence with a finite useful life are tested only when there is an indication, and the investment in an associate, although within the scope of IAS 36, is not one of the assets subject to the annual test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A fleet of delivery vehicles depreciated over 5 years.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciated vehicles are tested only when there is an indication.","es":""}},{"id":"B","text":{"fr":"","en":"An investment in an associate, in the absence of any indication.","es":""},"correct":false,"feedback":{"fr":"","en":"This investment is not one of the assets subject to the mandatory annual test.","es":""}},{"id":"C","text":{"fr":"","en":"An operating licence amortised over its contractual term of 12 years.","es":""},"correct":false,"feedback":{"fr":"","en":"A licence amortised over a finite term is tested only when there is an indication.","es":""}},{"id":"D","text":{"fr":"","en":"The goodwill recognised on the acquisition of Lunaris Ltd.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000055","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000055","tested_point":"QST.IAS36.000055","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity may skip the annual test of its acquired goodwill in a year in which no indication of impairment has arisen, provided it resumes the test the following year.","es":""},"explanation":{"fr":"","en":"False. Goodwill acquired in a business combination is tested every year, whether or not indications exist (IAS 36, para. 10). No year can be skipped because there is no indication.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000056","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000056","tested_point":"QST.IAS36.000056","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10","IAS 36 §11"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the annual test of intangible assets with an indefinite useful life or not yet available for use are correct? (Several answers possible.)","es":""},"explanation":{"fr":"","en":"The annual test may be performed at any time during the annual period, provided it is performed at the same time every year, and it is required even without an indication (IAS 36, para. 10). For intangible assets not yet available for use, it is justified by the greater uncertainty about their ability to generate sufficient future benefits (IAS 36, para. 11).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The test must be performed at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not required.","es":""}},{"id":"B","text":{"fr":"","en":"The test may be performed at any time during the annual period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The test is required only if an indication of impairment has been identified.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test is required even without an indication.","es":""}},{"id":"D","text":{"fr":"","en":"The test must be performed at the same time every year.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"For assets not yet available for use, the test is justified by greater uncertainty about future economic benefits.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000057","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.ANNUAL_TESTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000057","tested_point":"QST.IAS36.000057","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000003","section_id":"annual-tests"},"references":["IAS 36 §10"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X2, the Merlance group holds: an acquired customer list amortised over 6 years; internally developed management software, being finalised and not yet in use; the goodwill arising on the acquisition of Arbelle Ltd; a warehouse depreciated over 30 years. No indication of impairment is identified. Which assets must Merlance nevertheless test in 20X2?","es":""},"explanation":{"fr":"","en":"Even without an indication, intangible assets not yet available for use and goodwill acquired in a business combination are tested every year (IAS 36, para. 10). The amortised customer list and the depreciated warehouse are tested only when there is an indication.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since no indication of impairment has been identified.","es":""},"correct":false,"feedback":{"fr":"","en":"The software not yet in use and the goodwill are tested every year, even without an indication.","es":""}},{"id":"B","text":{"fr":"","en":"All four assets, since the impairment test is annual for all assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test without an indication only covers certain categories of assets.","es":""}},{"id":"C","text":{"fr":"","en":"The software not yet in use and the goodwill.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The goodwill only, the sole asset subject to an annual test.","es":""},"correct":false,"feedback":{"fr":"","en":"The software not yet in use is also subject to the annual test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000058","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000058","tested_point":"QST.IAS36.000058","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"True or false? The carrying amount of an entity's net assets exceeding its market capitalisation is one of the external sources of information to consider when looking for an indication of impairment.","es":""},"explanation":{"fr":"","en":"True. Among the external sources of information that the entity must consider as a minimum is the situation where the carrying amount of its net assets exceeds its market capitalisation (IAS 36, para. 12). The market then values the entity below what its accounts show, which requires the entity to question the value of its assets.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000059","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000059","tested_point":"QST.IAS36.000059","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12","IAS 36 §13"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity can conclude that there is an indication of impairment only if the situation observed matches one of the cases listed by the standard.","es":""},"explanation":{"fr":"","en":"False. The list in the standard sets the indications to be considered as a minimum (IAS 36, para. 12), but it is not exhaustive: if the entity identifies other evidence suggesting that an asset may be impaired, it must also estimate its recoverable amount (IAS 36, para. 13).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000060","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000060","tested_point":"QST.IAS36.000060","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12","IAS 36 §14"],"exercise":{"prompt":{"fr":"","en":"True or false? A machine whose market value is stable may nevertheless show an indication of impairment if internal reporting shows that the actual cash flows it generates are significantly lower than budgeted.","es":""},"explanation":{"fr":"","en":"True. Internal sources of information include economic performance of the asset that is worse than expected, as shown by internal reporting (IAS 36, para. 12). Actual cash flows significantly lower than budgeted are an illustration of this (IAS 36, para. 14). An internal indication is enough, even without any decline in market value.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000061","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000061","tested_point":"QST.IAS36.000061","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Which of the following is an internal source of information that may reveal an indication of impairment?","es":""},"explanation":{"fr":"","en":"Internal sources of information include obsolescence or physical damage of the asset, an adverse change in the way it is used and economic performance worse than expected. A decline in market value, an increase in market interest rates and market capitalisation below net assets are external sources (IAS 36, para. 12).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An increase in market interest rates during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"An increase in market rates is an indication external to the entity.","es":""}},{"id":"B","text":{"fr":"","en":"Market capitalisation lower than the carrying amount of the entity's net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison with market capitalisation is an external source.","es":""}},{"id":"C","text":{"fr":"","en":"A significant and unexpected decline in the asset's market value during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"It is an indication, but it comes from an external source: the market.","es":""}},{"id":"D","text":{"fr":"","en":"Physical damage to the asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000062","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000062","tested_point":"QST.IAS36.000062","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Transvaulx, a road haulier, is listing the indications of impairment affecting its fleet. Which of the following events is an external source of information?","es":""},"explanation":{"fr":"","en":"An adverse change in the legal environment in which the entity operates is an external source of information. The restructuring plan, the performance shown by internal reporting and the obsolescence of the lorries are internal sources (IAS 36, para. 12). All these situations are indications, but only one is external.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The board approves a restructuring plan for the freight division for the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"A restructuring plan is a change in the way the asset is used: it is an internal source.","es":""}},{"id":"B","text":{"fr":"","en":"Internal reporting shows operating losses on the regional routes.","es":""},"correct":false,"feedback":{"fr":"","en":"Losses shown by internal reporting are an internal source.","es":""}},{"id":"C","text":{"fr":"","en":"New regulations restrict the use of diesel lorries in city centres.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Several lorries have become obsolete compared with recent models.","es":""},"correct":false,"feedback":{"fr":"","en":"Obsolescence of the asset is an internal source of information.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000063","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000063","tested_point":"QST.IAS36.000063","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12","IAS 36 §14"],"exercise":{"prompt":{"fr":"","en":"Which of the following are among the indications of impairment that the entity must consider as a minimum?","es":""},"explanation":{"fr":"","en":"The minimum list includes a significant and unexpected decline in market value, an increase in market interest rates, an adverse change in the way the asset is used, such as a plan to discontinue the operation, and economic performance worse than expected (IAS 36, para. 12). Operating losses shown by internal reporting illustrate the last of these (IAS 36, para. 14). An increase in sales or a profitable contract are not signs of impairment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A sharp increase in the volumes sold using the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Higher volumes are a favourable sign, not an indication of impairment.","es":""}},{"id":"B","text":{"fr":"","en":"An increase in market interest rates during the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Operating losses of the business shown by internal reporting.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A significant and unexpected decline in the asset's market value.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The signing of a profitable multi-year contract that secures the use of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A profitable contract supports the value of the asset; it is not an indication.","es":""}},{"id":"F","text":{"fr":"","en":"A plan to discontinue the operation to which the asset belongs.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000064","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000064","tested_point":"QST.IAS36.000064","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Holvane holds a subsidiary, Brissac, presented at cost in its separate financial statements. During the year, Brissac pays it a large dividend. Which of the following pieces of information, together with this dividend, constitute an indication of impairment of the investment in Holvane's separate financial statements?","es":""},"explanation":{"fr":"","en":"For an investment in a subsidiary, joint venture or associate, receiving a dividend is an indication when it comes with evidence that either the carrying amount of the investment in the separate financial statements exceeds that of the investee's net assets in the consolidated financial statements, or the dividend exceeds the total comprehensive income of the period (IAS 36, para. 12). The amount compared with last year, the method of payment and Holvane's own distribution policy are not relevant.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The dividend is lower than the one paid in the previous year.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison with the previous dividend is not one of the criteria; only the two tests linked to the dividend received matter.","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the investment in the separate financial statements exceeds the carrying amount of Brissac's net assets in the consolidated financial statements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The dividend exceeds Brissac's total comprehensive income for the period in which it is declared.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The dividend is paid in cash rather than in shares.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of paying the dividend has no bearing on the analysis.","es":""}},{"id":"E","text":{"fr":"","en":"Holvane itself pays a dividend to its own shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"The dividend Holvane pays to its shareholders says nothing about the value of the investment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000065","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000065","tested_point":"QST.IAS36.000065","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12","IAS 36 §14"],"exercise":{"prompt":{"fr":"","en":"Vernalis operates a plant producing insulation panels. At the end of 20X1, the market value of comparable equipment is stable. However, internal reporting shows that the plant's net cash flows are 30% below budget and that the parent had to grant it unexpected cash advances to fund its operations. What conclusion should the controller reach?","es":""},"explanation":{"fr":"","en":"Internal sources of information include economic performance worse than expected, as shown by internal reporting (IAS 36, para. 12). Actual cash flows significantly below budget and increased cash needs to operate the asset illustrate this (IAS 36, para. 14). The absence of a decline in market value does not remove this internal indication.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is an indication of impairment, arising from internal sources of information.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"There is no indication as long as the plant does not report operating losses for two consecutive years.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no condition of losses over several years.","es":""}},{"id":"C","text":{"fr":"","en":"An indication exists only if the shortfall against budget exceeds 50%.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numerical threshold for the shortfall against budget.","es":""}},{"id":"D","text":{"fr":"","en":"There is no indication, since the market value of the equipment has not declined.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the classic mistake: an internal indication exists even if market value is stable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000066","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000066","tested_point":"QST.IAS36.000066","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §13","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Ostrale operates a patented manufacturing process that relies entirely on the know-how of a small team of engineers. In November 20X1, the whole team leaves to join a competitor and no replacement is feasible in the short term. The finance director argues that this situation does not appear as such in the standard's list of indications. Which position should be taken?","es":""},"explanation":{"fr":"","en":"The list of indications sets a minimum (IAS 36, para. 12), but it is not exhaustive: when the entity identifies other evidence suggesting that an asset may be impaired, it must likewise estimate the recoverable amount (IAS 36, para. 13). The departure of the team that masters the process is such evidence. Estimating the recoverable amount will then show whether there is an impairment loss and of what amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is no indication, because the situation is not in the standard's list.","es":""},"correct":false,"feedback":{"fr":"","en":"The list is not exhaustive: an unlisted indication has the same effects.","es":""}},{"id":"B","text":{"fr":"","en":"The entity must estimate the recoverable amount of the assets concerned, since the list of indications is not exhaustive.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity waits for the 20X2 results to see the effect of the departure before any analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the following year amounts to ignoring an indication that exists at the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"The entity immediately recognises an impairment loss equal to the entire carrying amount of the patented process, without further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication triggers the estimate of the recoverable amount; it does not by itself set the amount of a loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000067","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000067","tested_point":"QST.IAS36.000067","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"In September 20X1, the board of Talmeyre decides to sell, as early as 20X2, a printing press that it had planned to operate until 20X6. The market value of comparable presses has not changed and the machine is in perfect condition. How should this decision be analysed in terms of indications of impairment?","es":""},"explanation":{"fr":"","en":"Internal sources of information include adverse changes in the way the asset is used, including a plan to dispose of it before the previously expected date (IAS 36, para. 12). The board's decision is enough to constitute the indication: neither the actual sale, nor the physical condition of the machine, nor a comparison with its purchase price is required.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not an indication, because the machine is in perfect condition.","es":""},"correct":false,"feedback":{"fr":"","en":"Physical condition is only one indication among others; the change in use is enough.","es":""}},{"id":"B","text":{"fr":"","en":"It becomes an indication only when the sale is actually completed and the final selling price is known to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The plan for an early disposal is an indication as soon as it is decided, without waiting for the sale.","es":""}},{"id":"C","text":{"fr":"","en":"It is an indication: disposing of the asset before the expected date is an adverse change in the way it is used.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is an indication only if the expected selling price is lower than the original purchase price.","es":""},"correct":false,"feedback":{"fr":"","en":"The original purchase price is not a criterion for identifying indications.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000068","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000068","tested_point":"QST.IAS36.000068","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"A cold-storage warehouse owned by Lunaria was severely damaged by fire in October 20X1. At the year-end, the accountant writes the analysis below. Which step contains the error?","es":""},"explanation":{"fr":"","en":"Physical damage to an asset is an internal source of information listed by the standard (IAS 36, para. 12). The fire is therefore an indication, even though the market value of comparable warehouses is stable. Step 3 wrongly concludes that there is no indication by looking only at the external source.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: the entity looks for indications of impairment from external and internal sources of information.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: both categories of sources must be considered.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: the market value of comparable warehouses in the region has not declined.","es":""},"correct":false,"feedback":{"fr":"","en":"This factual finding is accurate; the error lies in the conclusion drawn from it.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: since market value has not declined, there is no indication of impairment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: the analysis is documented in the year-end file.","es":""},"correct":false,"feedback":{"fr":"","en":"Documenting the analysis is good practice; the error is elsewhere.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000069","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000069","tested_point":"QST.IAS36.000069","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Corvane, a listed company, reports at the end of 20X1 net assets with a carrying amount of 55,000,000 and a market capitalisation of 40,000,000. The analysis of indications written by a staff member includes the following steps. Which one is wrong?","es":""},"explanation":{"fr":"","en":"Net assets with a carrying amount above market capitalisation are expressly listed among the external sources of information to consider (IAS 36, para. 12). The difference of 15,000,000 (55,000,000 − 40,000,000) is therefore an indication: step 3 wrongly disregards it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: at the year-end, Corvane's market capitalisation is compared with the carrying amount of its net assets as shown in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"This comparison is exactly the one the standard requires.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: a difference of 15,000,000 is noted between the two amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation is right: 55,000,000 − 40,000,000 = 15,000,000.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: this difference is disregarded, because the share price relates to the entity as a whole and cannot be an indication for its assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: the other sources of information, both internal and external, are also considered.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the analysis must cover all sources.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000070","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000070","tested_point":"QST.IAS36.000070","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §15"],"exercise":{"prompt":{"fr":"","en":"In the previous year's test, Ferlane estimated the recoverable amount of a CGU at 40% above its carrying amount. This year, a minor indication appears, but no event since then could have eliminated this difference. What does the standard provide?","es":""},"explanation":{"fr":"","en":"Materiality applies to the analysis of indications: when a previous calculation showed a recoverable amount significantly above the carrying amount and no event has eliminated that difference, a new estimate is not needed (IAS 36, para. 15). The exemption holds only as long as the headroom has not been eliminated by subsequent events.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ferlane must wait for several consecutive years of indications before any analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no waiting period of several years.","es":""}},{"id":"B","text":{"fr":"","en":"Ferlane is permanently exempt from any test of this CGU, whatever future events may occur.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is not permanent: a subsequent event may eliminate the headroom.","es":""}},{"id":"C","text":{"fr":"","en":"Ferlane must in all cases perform a new full estimate of the recoverable amount, since an indication exists.","es":""},"correct":false,"feedback":{"fr":"","en":"Materiality makes it possible to avoid a new estimate when the previous headroom remains.","es":""}},{"id":"D","text":{"fr":"","en":"Ferlane is not required to re-estimate the recoverable amount, since the previous headroom has not been eliminated.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000071","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY","IAS36.INDICATORS.INDICATOR_LIST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000071","tested_point":"QST.IAS36.000071","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"external-indicators"},"references":["IAS 36 §16","IAS 36 §15","IAS 36 §12"],"exercise":{"prompt":{"fr":"","en":"Short-term market interest rates have risen during the year. Pradel owns a hydroelectric plant with a remaining useful life of 35 years, and its analysis shows that the discount rate used for this asset is unlikely to be affected by this increase. What conclusion should be reached?","es":""},"explanation":{"fr":"","en":"An increase in market rates does not require a formal estimate of the recoverable amount when the asset's discount rate is unlikely to be affected, for example an increase in short-term rates for an asset with a long remaining useful life (IAS 36, para. 16). This applies materiality to the analysis of indications (IAS 36, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A formal estimate of the recoverable amount is not required merely because of this increase.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Pradel must raise its discount rate by the same number of points as short-term rates.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires the rise in short-term rates to be passed mechanically into the discount rate.","es":""}},{"id":"C","text":{"fr":"","en":"An increase in short-term rates can never be an indication, as only long-term rates are covered by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"An increase in market rates is indeed an indication; the only question is whether it requires a formal estimate.","es":""}},{"id":"D","text":{"fr":"","en":"Pradel must formally estimate the plant's recoverable amount, because any increase in market rates requires it.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the systematic recalculation error: first assess the effect on the discount rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000072","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000072","tested_point":"QST.IAS36.000072","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §15"],"exercise":{"prompt":{"fr":"","en":"A previous analysis by Quintal showed that the recoverable amount of its distribution network is not sensitive to changes in the price of diesel. This year, that price fluctuates sharply, which management regards as an indication. No other new factor is identified. What does the standard allow?","es":""},"explanation":{"fr":"","en":"When a previous analysis shows that an asset's recoverable amount is not sensitive to the indication concerned, the entity does not need to re-estimate that amount (IAS 36, para. 15). The previous analysis must, however, remain relevant, which assumes that no other new factor calls it into question.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: as soon as an indication appears, the recoverable amount must be recalculated in full, whatever the previous analysis shows.","es":""},"correct":false,"feedback":{"fr":"","en":"Materiality and the previous sensitivity analysis make it possible to avoid a systematic recalculation.","es":""}},{"id":"B","text":{"fr":"","en":"Quintal may rely on the previous analysis, which shows that the recoverable amount is not sensitive to this indication, and not re-estimate it.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Quintal must redo a sensitivity analysis every month for every possible indication.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard imposes no such frequency.","es":""}},{"id":"D","text":{"fr":"","en":"Quintal may ignore the indication only if its auditor authorises it in writing.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment belongs to the entity; no auditor authorisation is provided for.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000073","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000073","tested_point":"QST.IAS36.000073","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §15"],"exercise":{"prompt":{"fr":"","en":"In the 20X0 test, the recoverable amount of Sorbel's Packaging CGU exceeded its carrying amount by 25%. In 20X1, its main customer, which accounted for 45% of the CGU's revenue, terminates its contract. The finance director proposes not to re-estimate the recoverable amount, relying on the headroom found in 20X0. What should be concluded?","es":""},"explanation":{"fr":"","en":"A previous calculation showing significant headroom removes the need for a new estimate only if no event since then may have eliminated that headroom (IAS 36, para. 15). The loss of a customer accounting for 45% of revenue is precisely such an event: the CGU's recoverable amount must be estimated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is acceptable: 25% headroom is significant and removes the need for any new estimate.","es":""},"correct":false,"feedback":{"fr":"","en":"The previous headroom is not enough: it must be checked that no event has eliminated it.","es":""}},{"id":"B","text":{"fr":"","en":"The proposal must be rejected: the loss of the customer is an event that may have eliminated the headroom, so the exemption does not apply.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is enough to apply a 45% reduction to the 20X0 recoverable amount, without further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"A flat reduction is not an estimate of the recoverable amount.","es":""}},{"id":"D","text":{"fr":"","en":"The headroom found in 20X0 exempts the CGU from any test for three years.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no multi-year exemption of this kind.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000074","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000074","tested_point":"QST.IAS36.000074","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §16"],"exercise":{"prompt":{"fr":"","en":"Market interest rates rise sharply in 20X1. Amarante operates car parks whose prices are contractually indexed to inflation. A sensitivity analysis performed in 20X0 showed that an increase in rates would come with a comparable increase in future cash flows, so that a significant fall in the recoverable amount would be unlikely. Nothing has changed in the contracts since then. What should be concluded for 20X1?","es":""},"explanation":{"fr":"","en":"An increase in market rates does not require a formal estimate when a previous sensitivity analysis shows that a significant fall in the recoverable amount is unlikely, for example because future cash flows will also increase (IAS 36, para. 16). This is the case of Amarante's indexed prices.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Amarante must recognise an impairment loss proportional to the rate increase.","es":""},"correct":false,"feedback":{"fr":"","en":"An impairment loss is not calculated by simple proportion to the rate increase.","es":""}},{"id":"B","text":{"fr":"","en":"Amarante must reduce its forecast cash flows by the amount of the rate increase, without further analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Mechanically adjusting cash flows makes no sense: indexed prices actually increase cash flows.","es":""}},{"id":"C","text":{"fr":"","en":"A formal estimate of the recoverable amount is mandatory in all cases, because an increase in market rates is among the indications listed by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"This is systematic recalculation: the standard allows reliance on a previous sensitivity analysis.","es":""}},{"id":"D","text":{"fr":"","en":"Amarante may refrain from a formal estimate, since the previous analysis shows that a significant fall in the recoverable amount is unlikely.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000075","standard_id":"IAS36","concept_ids":["IAS36.INDICATORS.MATERIALITY"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000075","tested_point":"QST.IAS36.000075","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000004","section_id":"materiality"},"references":["IAS 36 §15","IAS 36 §16"],"exercise":{"prompt":{"fr":"","en":"Belcourt owns a fleet of vessels with a remaining useful life of six years. In 20X1, market rates of return rise sharply and Belcourt considers that its discount rate will be affected. The last calculation showed a recoverable amount only 2% above the carrying amount, and no sensitivity analysis has been performed. What should be concluded?","es":""},"explanation":{"fr":"","en":"The materiality reliefs require either previous headroom with a recoverable amount significantly above the carrying amount (IAS 36, para. 15), or a discount rate that is unlikely to be affected, or a sensitivity analysis showing that a significant fall is unlikely (IAS 36, para. 16). None of these conditions is met here: 2% headroom is not significant and the discount rate is affected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No estimate is required, since the recoverable amount exceeded the carrying amount at the last calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Headroom of 2% is not a recoverable amount significantly above the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"No estimate is required, because an increase in market rates of return is never an indication of impairment for assets with a short remaining useful life, such as the vessels.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no such exclusion for assets with a short remaining useful life.","es":""}},{"id":"C","text":{"fr":"","en":"A formal estimate of the recoverable amount is needed: previous headroom is small, the discount rate is affected and no analysis shows a lack of sensitivity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Belcourt may simply mention the rate increase in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"A disclosure in the notes does not replace estimating the recoverable amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000078","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000078","tested_point":"QST.IAS36.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"True or false? The recoverable amount of an asset is the higher of two amounts: its fair value less costs of disposal and its value in use.","es":""},"explanation":{"fr":"","en":"True. The recoverable amount is defined as the higher of fair value less costs of disposal and value in use (IAS 36, para. 18). This definition applies both to an individual asset and to a CGU.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000079","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000079","tested_point":"QST.IAS36.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"True or false? Out of prudence, an entity uses as recoverable amount the lower of fair value less costs of disposal and value in use.","es":""},"explanation":{"fr":"","en":"False. The recoverable amount is the higher of the two amounts, not the lower (IAS 36, para. 18). Prudence is no reason to depart from this definition.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000080","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000080","tested_point":"QST.IAS36.000080","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §19"],"exercise":{"prompt":{"fr":"","en":"True or false? If an asset's fair value less costs of disposal already exceeds its carrying amount, the entity does not need to estimate its value in use to conclude that the asset is not impaired.","es":""},"explanation":{"fr":"","en":"True. It is not always necessary to determine both measures: if either of them exceeds the carrying amount, the asset is not impaired and the other need not be estimated (IAS 36, para. 19). The recoverable amount, being the higher of the two, is indeed at least equal to that measure.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000081","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000081","tested_point":"QST.IAS36.000081","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"How is the recoverable amount of an asset determined?","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18). Neither the lower amount, nor an average, nor a single imposed measure matches the definition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lower of fair value less costs of disposal and value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: the higher of the two amounts is used.","es":""}},{"id":"B","text":{"fr":"","en":"Value in use, in all cases.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use is only one of the two measures; fair value less costs of disposal may be higher.","es":""}},{"id":"C","text":{"fr":"","en":"The higher of fair value less costs of disposal and value in use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The average of fair value less costs of disposal and value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no average of the two measures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000082","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000082","tested_point":"QST.IAS36.000082","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §21"],"exercise":{"prompt":{"fr":"","en":"Mirabel has decided to sell a disused warehouse: the sale is expected within a few months and the warehouse no longer generates operating cash flows. There is no indication that its value in use materially exceeds its fair value less costs of disposal. Which approach is appropriate for determining its recoverable amount?","es":""},"explanation":{"fr":"","en":"When there is no indication that value in use materially exceeds fair value less costs of disposal, the latter may be used as the recoverable amount. This is often the case for an asset held for disposal, whose value in use consists mainly of the net disposal proceeds (IAS 36, para. 21).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use fair value less costs of disposal, since value in use consists mainly of the net disposal proceeds.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Use the historical acquisition cost of the warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is neither a fair value nor a value in use.","es":""}},{"id":"C","text":{"fr":"","en":"Use the expected selling price, without deducting costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Costs of disposal must be deducted from fair value.","es":""}},{"id":"D","text":{"fr":"","en":"Necessarily build a full five-year value in use model, then use the lower of the two amounts obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"A full model is not needed here and, in any case, the lower of the two amounts is never used.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000083","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000083","tested_point":"QST.IAS36.000083","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18","IAS 36 §19","IAS 36 §21","IAS 36 §23"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about determining the recoverable amount are correct?","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of the two measures (IAS 36, para. 18). It is not necessary to calculate both when one of them already exceeds the carrying amount (IAS 36, para. 19). Fair value less costs of disposal may be used when there is no indication that value in use materially exceeds it (IAS 36, para. 21). Finally, estimates, averages and shortcuts are allowed if they provide a reasonable approximation (IAS 36, para. 23).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The recoverable amount is the lower of the two measures.","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is the higher, not the lower, of the two amounts.","es":""}},{"id":"B","text":{"fr":"","en":"It is not always necessary to calculate both measures.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Estimates, averages and computational shortcuts may be used if they provide a reasonable approximation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Value in use must always be calculated, even when fair value less costs of disposal exceeds the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Calculating value in use is unnecessary in this case: the asset is not impaired.","es":""}},{"id":"E","text":{"fr":"","en":"When there is no indication that value in use materially exceeds fair value less costs of disposal, the latter may be used as the recoverable amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000084","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000201","tested_point":"VG.IAS36.000201","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, Arvel tests a hydraulic press that shows an indication of impairment. Its carrying amount is {carrying_amount}. An expert estimates its fair value less costs of disposal at {fvlcd} and management calculates a value in use of {value_in_use}. What is the recoverable amount of the press?","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18): the higher of 420,000 and 465,000, i.e. 465,000. The carrying amount of 500,000 plays no part in determining the recoverable amount; it is only the basis of comparison.","es":""},"common_error":{"fr":"","en":"Using the lower of the two amounts (420,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"500000","unit":"EUR"},{"id":"fvlcd","value":"420000","unit":"EUR"},{"id":"value_in_use","value":"465000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the press","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"465000","unit":"EUR"}],"steps":[{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":465000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RECOVERABLE_AMOUNT","meaning":{"fr":"","en":"Recoverable amount","es":""},"expression":"max(a, b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in use","es":""},"value":465000,"unit":"EUR"}],"result":465000,"unit":"EUR"}],"rationale":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18): the higher of 420,000 and 465,000, i.e. 465,000.","es":""},"references":["REF.IAS36.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000085","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000201","tested_point":"VG.IAS36.000201","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Navalis operates a river cruise boat carried at {carrying_amount} at 31 December 20X1. A specialist ship broker values the price Navalis would obtain for the boat, net of costs of disposal, at {fvlcd}, while management's projections result in a value in use of {value_in_use}. Determine the recoverable amount of the boat.","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18). Here, fair value less costs of disposal (2,150,000) exceeds value in use (1,980,000): the recoverable amount is 2,150,000. Value in use is not always the measure used.","es":""},"common_error":{"fr":"","en":"Systematically using value in use (1,980,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"2400000","unit":"EUR"},{"id":"fvlcd","value":"2150000","unit":"EUR"},{"id":"value_in_use","value":"1980000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the boat","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"2150000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"1980000","unit":"EUR"}],"steps":[{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":2150000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000086","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000202","tested_point":"VG.IAS36.000202","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Kerlan owns a bottling line with a carrying amount of {carrying_amount}. Its fair value, determined under IFRS 13 and given as a datum, is {fair_value}; the costs of disposal of a sale are estimated at {costs_of_disposal}. The value in use calculated by management amounts to {value_in_use}. Determine fair value less costs of disposal, then the recoverable amount of the line.","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal: 780,000 − 30,000 = 750,000. The recoverable amount is the higher of this measure and value in use (IAS 36, para. 18): the higher of 750,000 and 720,000, i.e. 750,000. It remains below the carrying amount of 800,000.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct costs of disposal and using 780,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"800000","unit":"EUR"},{"id":"fair_value","value":"780000","unit":"EUR"},{"id":"costs_of_disposal","value":"30000","unit":"EUR"},{"id":"value_in_use","value":"720000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the line","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":"780000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"720000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":750000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":780000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":30000,"unit":"EUR"}],"result":750000,"unit":"EUR"}],"rationale":{"fr":"","en":"The recoverable amount is the higher of this measure and value in use (IAS 36, para. 18): the higher of 750,000 and 720,000, i.e. 750,000.","es":""},"references":["REF.IAS36.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000087","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000202","tested_point":"VG.IAS36.000202","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"A logistics warehouse used by Pellion for its own deliveries is carried at {carrying_amount}. According to an IFRS 13 valuation given as a datum, it could be sold for {fair_value}, with costs of disposal of {costs_of_disposal}. The cash flows expected from its use result in a value in use of {value_in_use}. Calculate fair value less costs of disposal and the recoverable amount of the warehouse.","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal: 1,240,000 − 40,000 = 1,200,000. The recoverable amount is the higher of this measure and value in use (IAS 36, para. 18): the higher of 1,200,000 and 1,260,000, i.e. 1,260,000. Here, value in use prevails; it remains below the carrying amount of 1,300,000.","es":""},"common_error":{"fr":"","en":"Using fair value less costs of disposal because it comes from the market (1,200,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"1300000","unit":"EUR"},{"id":"fair_value","value":"1240000","unit":"EUR"},{"id":"costs_of_disposal","value":"40000","unit":"EUR"},{"id":"value_in_use","value":"1260000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the warehouse","es":""},"value":"1300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":"1240000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"1260000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":1260000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":1240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":40000,"unit":"EUR"}],"result":1200000,"unit":"EUR"}],"rationale":{"fr":"","en":"The recoverable amount is the higher of this measure and value in use (IAS 36, para. 18): the higher of 1,200,000 and 1,260,000, i.e. 1,260,000.","es":""},"references":["REF.IAS36.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000088","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000088","tested_point":"QST.IAS36.000088","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §19","IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Ondine tests a rolling mill with a carrying amount of 1,800,000. A firm offer from a buyer results in a fair value less costs of disposal of 2,100,000. The management controller proposes to also build a value in use model, whose expected result is about 1,600,000, and then to recognise an impairment loss of 200,000. What should be concluded?","es":""},"explanation":{"fr":"","en":"When either measure exceeds the carrying amount, the asset is not impaired and the other measure need not be estimated (IAS 36, para. 19). The recoverable amount, as the higher of the two amounts, is at least 2,100,000 (IAS 36, para. 18), above the carrying amount of 1,800,000. The value in use model is unnecessary and the proposed loss does not exist.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Value in use must first be calculated, then the lower of the two amounts used as recoverable amount, i.e. 1,600,000, and the corresponding loss recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The lower of the two amounts is never used, and calculating value in use is unnecessary here.","es":""}},{"id":"B","text":{"fr":"","en":"The controller is right: the impairment loss of 200,000 must be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The proposed loss relies on the lower of the two amounts; the asset is not impaired.","es":""}},{"id":"C","text":{"fr":"","en":"The rolling mill is not impaired: its fair value less costs of disposal already exceeds its carrying amount, so value in use need not be calculated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The average of the two measures, i.e. 1,850,000, must be used, and no loss is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no average of the two measures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000089","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000089","tested_point":"QST.IAS36.000089","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §23"],"exercise":{"prompt":{"fr":"","en":"To estimate the recoverable amount of a cold-storage warehouse, Brémond's finance team uses the average operating costs of the last three years and a simplified model, rather than a detailed line-by-line projection. The differences found against a detailed projection prepared last year were minimal. The auditor asks whether this approach is acceptable.","es":""},"explanation":{"fr":"","en":"The standard allows estimates, averages and computational shortcuts to be used in determining the recoverable amount, provided they give a reasonable approximation (IAS 36, para. 23). The minimal differences observed against a detailed projection support here the reasonableness of the approximation, which should be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: only detailed projections, prepared year by year and line by line without any simplification, are allowed by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly allows reasonable simplifications.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, provided these estimates, averages and shortcuts give a reasonable approximation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, unconditionally, as long as the method is applied consistently.","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency of method is not enough: the approximation must be reasonable.","es":""}},{"id":"D","text":{"fr":"","en":"No: using averages requires fair value less costs of disposal to be used as the only measure.","es":""},"correct":false,"feedback":{"fr":"","en":"Using averages does not require choosing one measure over the other.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000090","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000090","tested_point":"QST.IAS36.000090","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"At what level should the recoverable amount be determined in principle?","es":""},"explanation":{"fr":"","en":"The recoverable amount is assessed asset by asset, except when the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets; it is then determined for the CGU to which the asset belongs, subject to certain exceptions (IAS 36, para. 22).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Always at the level of the operating segment to which the asset belongs.","es":""},"correct":false,"feedback":{"fr":"","en":"The operating segment is not the level at which the recoverable amount is determined.","es":""}},{"id":"B","text":{"fr":"","en":"At a level freely chosen by management, provided it is applied consistently from one year to the next and documented.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the test follows from the independence of cash flows, not from a management choice.","es":""}},{"id":"C","text":{"fr":"","en":"Always at the level of the entity as a whole, so as to reflect the overall value of its activities.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the whole entity is not the principle: the starting point is the individual asset.","es":""}},{"id":"D","text":{"fr":"","en":"For each individual asset, unless it does not generate largely independent cash inflows: the CGU level is then used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000091","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000091","tested_point":"QST.IAS36.000091","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"In Castelbon's plant, a conveyor links the cutting machine to the packaging line. It generates no cash inflows separate from those of the production line. Its fair value less costs of disposal, limited to a scrap value, is below its carrying amount, and the entity continues to use it fully. An indication of impairment affects the line. At what level should the recoverable amount be estimated?","es":""},"explanation":{"fr":"","en":"The conveyor does not generate largely independent cash inflows, its fair value less costs of disposal is below its carrying amount and, since the asset remains fully in use, its value in use cannot be presumed to be close to its scrap value. No exception applies: the recoverable amount is determined for the CGU to which it belongs (IAS 36, para. 22).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the conveyor alone, using its scrap value as recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"No exception allows an asset without largely independent cash flows to be tested on its own here.","es":""}},{"id":"B","text":{"fr":"","en":"At the level of the CGU to which the conveyor belongs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the level of the conveyor alone, attributing to it a separate value in use estimated by management.","es":""},"correct":false,"feedback":{"fr":"","en":"Without largely independent cash flows and with no applicable exception, the conveyor cannot be tested on its own.","es":""}},{"id":"D","text":{"fr":"","en":"At the level of the whole entity, regardless of its organisation.","es":""},"correct":false,"feedback":{"fr":"","en":"The level used is the asset's CGU, not necessarily the whole entity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000092","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000092","tested_point":"QST.IAS36.000092","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"A crane truck owned by Fontrieu is used on a construction site and does not generate largely independent cash inflows. Its fair value less costs of disposal, observed on the second-hand market, is 310,000, against a carrying amount of 260,000. What can the entity conclude?","es":""},"explanation":{"fr":"","en":"Even for an asset without largely independent cash flows, the recoverable amount may be determined at the level of the asset when its fair value less costs of disposal is higher than its carrying amount (IAS 36, para. 22). With 310,000 against 260,000, the crane truck is not impaired and moving to the CGU level is unnecessary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It may determine the recoverable amount of the crane truck itself: it exceeds its carrying amount, which is therefore not impaired.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It cannot conclude anything until the crane truck's value in use has been calculated on its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use is not needed here, as fair value less costs of disposal is sufficient.","es":""}},{"id":"C","text":{"fr":"","en":"It must use the carrying amount of 260,000 as recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is never the recoverable amount by default.","es":""}},{"id":"D","text":{"fr":"","en":"It must necessarily estimate the recoverable amount of the site's CGU, since the crane truck does not by itself generate independent cash inflows.","es":""},"correct":false,"feedback":{"fr":"","en":"This overlooks the exception: fair value less costs of disposal above the carrying amount allows a conclusion at the level of the asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000093","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000093","tested_point":"QST.IAS36.000093","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"Rivesalte has decided to take a packaging line out of service and to sell it in two months; until then, the cash flows expected from its use are negligible. The line does not generate largely independent cash inflows and its fair value less costs of disposal, which can be measured, is below its carrying amount. At what level should its recoverable amount be determined?","es":""},"explanation":{"fr":"","en":"When an asset does not generate largely independent cash flows, the recoverable amount may nevertheless be determined for the asset itself if its value in use can be estimated to be close to its fair value less costs of disposal and the latter can be measured (IAS 36, para. 22). This is the case for a line withdrawn from operation whose sale is imminent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the largest group of CGUs in the entity, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence does not justify departing from the level set by the standard.","es":""}},{"id":"B","text":{"fr":"","en":"At the CGU level in all cases, because the line does not generate cash inflows that are largely independent of those of the plant's other assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This ignores the exception where value in use is close to fair value less costs of disposal.","es":""}},{"id":"C","text":{"fr":"","en":"At the level of the line itself, since its value in use can be estimated to be close to its fair value less costs of disposal, which is measurable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the level of the whole entity, since the line is to be sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The plan to sell does not lead to testing the whole entity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000094","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000094","tested_point":"QST.IAS36.000094","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"In which of the following situations must the recoverable amount be estimated at the CGU level rather than for the individual asset?","es":""},"explanation":{"fr":"","en":"The CGU level is used when the asset does not generate largely independent cash inflows and no exception applies: fair value less costs of disposal above the carrying amount, or value in use close to that fair value (IAS 36, para. 22). The furnace and the software belong at the CGU level; the shop has independent cash flows and the vehicle benefits from the exception.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A shop whose takings come from its own customers, independently of the entity's other assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The shop generates largely independent cash flows: it is tested on its own.","es":""}},{"id":"B","text":{"fr":"","en":"An industrial furnace integrated into a production line, without its own cash flows, whose fair value less costs of disposal is below its carrying amount and whose value in use is not close to that fair value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In-house production software, without its own cash flows, whose fair value less costs of disposal is low and whose value in use bears no relation to that fair value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A delivery vehicle, without its own cash flows, whose fair value less costs of disposal exceeds its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception applies: fair value less costs of disposal exceeds the carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000095","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000095","tested_point":"QST.IAS36.000095","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §24"],"exercise":{"prompt":{"fr":"","en":"Alcyon holds a brand with an indefinite useful life, tested within a CGU. It wishes to reuse for 20X2 the detailed calculation of recoverable amount made in 20X1. Which conditions must be met?","es":""},"explanation":{"fr":"","en":"The most recent detailed calculation made in a preceding period may be reused for an intangible asset with an indefinite useful life if three cumulative conditions are met: no significant change in the composition of the CGU when the asset is tested within a CGU, a substantial margin at the last calculation, and a remote likelihood that the current recoverable amount is below the carrying amount (IAS 36, para. 24).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The brand was acquired less than three years ago.","es":""},"correct":false,"feedback":{"fr":"","en":"How long ago the asset was acquired is not a condition.","es":""}},{"id":"B","text":{"fr":"","en":"The composition of the CGU has not changed significantly since the last calculation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The last calculation showed a recoverable amount exceeding the carrying amount by a substantial margin.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The statutory auditor has approved in writing the carry-forward of the calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires no auditor approval.","es":""}},{"id":"E","text":{"fr":"","en":"Based on the events that have occurred since, the likelihood that the current recoverable amount is below the carrying amount is remote.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000096","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000096","tested_point":"QST.IAS36.000096","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"In addition to its main furniture manufacturing business, Hautbois operates a public pay car park next to its head office. The car park collects its own hourly takings, unrelated to furniture sales. An indication of impairment affects the car park. At what level should its recoverable amount be estimated?","es":""},"explanation":{"fr":"","en":"The recoverable amount is determined for the individual asset whenever it generates cash inflows that are largely independent of those from other assets (IAS 36, para. 22). The car park collects its own takings from the public: it is tested on its own, whatever its weight in the entity's business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No test is needed, because the car park is not part of the entity's main business.","es":""},"correct":false,"feedback":{"fr":"","en":"An ancillary asset showing an indication must also have its recoverable amount assessed.","es":""}},{"id":"B","text":{"fr":"","en":"At the level of the head office, to which the car park is physically attached, grouping both assets in a single calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Physical proximity is not a criterion: only cash flows matter.","es":""}},{"id":"C","text":{"fr":"","en":"At the level of a CGU grouping all the entity's assets, since the car park is not the main business.","es":""},"correct":false,"feedback":{"fr":"","en":"The ancillary nature of the activity does not change the criterion: the car park's cash flows are independent.","es":""}},{"id":"D","text":{"fr":"","en":"At the level of the car park itself, which generates largely independent cash inflows.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000097","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000097","tested_point":"QST.IAS36.000097","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §24"],"exercise":{"prompt":{"fr":"","en":"Mérens holds a beverage brand with an indefinite useful life, tested within the Beverages CGU. The 20X0 detailed calculation showed a recoverable amount 40% above the carrying amount of the CGU. In 20X1, Mérens adds to this CGU an acquired plant and two production lines, almost doubling its assets; no other adverse event is identified. Can it reuse the 20X0 calculation for the 20X1 test?","es":""},"explanation":{"fr":"","en":"Reusing the most recent detailed calculation requires, among other things, that the composition of the CGU has not changed significantly since that calculation (IAS 36, para. 24). Adding a plant and two lines, which almost doubles the CGU's assets, is a significant change: the 40% margin is not enough, and a new calculation is needed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the composition of the CGU has changed significantly, so one of the cumulative conditions is not met.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, provided it simply adds to the recoverable amount calculated in 20X0 the price paid for the plant and the two lines added to the CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"Adding a purchase price to a previous recoverable amount is not an estimate of the recoverable amount.","es":""}},{"id":"C","text":{"fr":"","en":"No, because a previous calculation can never be reused for an intangible asset with an indefinite useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Reuse is possible when the three conditions are met; it simply is not possible here.","es":""}},{"id":"D","text":{"fr":"","en":"Yes: the 40% margin alone is enough to allow reuse.","es":""},"correct":false,"feedback":{"fr":"","en":"The conditions are cumulative: the margin does not make up for the change in the composition of the CGU.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000098","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000098","tested_point":"QST.IAS36.000098","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §24"],"exercise":{"prompt":{"fr":"","en":"Sorgue holds an operating licence with an indefinite useful life, tested on its own because it generates its own cash flows. The detailed calculation made in 20X1 showed a recoverable amount of 9,000,000 against a carrying amount of 5,000,000. In 20X2, no event affects the licence and management considers it very unlikely, in view of the circumstances, that its recoverable amount has fallen below its carrying amount. What can Sorgue do for the 20X2 test?","es":""},"explanation":{"fr":"","en":"For an intangible asset with an indefinite useful life, the most recent detailed calculation may be reused if the margin was substantial and the likelihood of a recoverable amount below the carrying amount is remote; the condition on the composition of the CGU only applies to an asset tested within a CGU (IAS 36, para. 24). A margin of 4,000,000 (9,000,000 − 5,000,000), i.e. 80% of the carrying amount, is substantial.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use the detailed calculation from 20X1, since the conditions for reuse are met.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Necessarily perform a new detailed calculation, since reusing a previous calculation is never allowed for an asset tested on its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Reuse is allowed for an asset tested on its own as well as for one tested within a CGU.","es":""}},{"id":"C","text":{"fr":"","en":"First allocate the licence to a CGU, because reuse is only possible if the composition of a CGU has remained unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"The condition on the composition of the CGU applies only when the asset is tested within a CGU.","es":""}},{"id":"D","text":{"fr":"","en":"Reuse the calculation only if the margin exceeds 100% of the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires a substantial margin, without setting a numerical threshold.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000099","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000099","tested_point":"QST.IAS36.000099","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §24"],"exercise":{"prompt":{"fr":"","en":"Tavel holds broadcasting rights with an indefinite useful life, tested within the Media CGU, whose composition has not changed since 20X0. The 20X0 detailed calculation gave a recoverable amount of 10,300,000 against a carrying amount of 10,000,000. Management wishes to reuse this calculation for 20X1 to save the cost of a valuation. Is this possible?","es":""},"explanation":{"fr":"","en":"Reusing the most recent detailed calculation requires, in particular, that this calculation showed a recoverable amount exceeding the carrying amount by a substantial margin (IAS 36, para. 24). An excess of 300,000 (10,300,000 − 10,000,000), i.e. 3% of the carrying amount, is too small to be regarded as substantial: a new calculation is needed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: an excess of 300,000, i.e. 3% of the carrying amount, is not a substantial margin.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, as long as the recoverable amount exceeded the carrying amount, whatever the difference.","es":""},"correct":false,"feedback":{"fr":"","en":"A mere excess is not enough: the margin must be substantial.","es":""}},{"id":"C","text":{"fr":"","en":"No, because reuse is only permitted for an asset tested on its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Reuse is also possible for an asset tested within a CGU.","es":""}},{"id":"D","text":{"fr":"","en":"Yes, since the composition of the Media CGU has not changed since 20X0 and this condition alone is enough to allow reuse.","es":""},"correct":false,"feedback":{"fr":"","en":"The three conditions are cumulative: a stable CGU is not enough.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000100","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000100","tested_point":"QST.IAS36.000100","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"Coursan operates a quarry and the private railway line linking it to the national network. The line could only be sold for its scrap value, which is below its carrying amount, and it does not generate cash inflows independent of those of the quarry, which continues to use it fully. After a flood damaged the line, the accountant proposes to estimate the recoverable amount of the line alone, equal to its scrap value. What is the right approach?","es":""},"explanation":{"fr":"","en":"The line does not generate largely independent cash flows. Its fair value less costs of disposal (scrap value) is below its carrying amount and, since the line is fully used, its value in use cannot be presumed to be close to that scrap value. No exception applies: the recoverable amount is determined for the CGU to which the line belongs (IAS 36, para. 22).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Do not test the line, since it generates no cash inflows of its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Having no cash flows of its own does not exempt the asset from testing: it leads to testing the CGU.","es":""}},{"id":"B","text":{"fr":"","en":"Set the line's recoverable amount at zero, for lack of its own cash flows, and write it off in full.","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is not zero by default: for lack of its own cash flows, the CGU is tested.","es":""}},{"id":"C","text":{"fr":"","en":"Follow the accountant: the line's recoverable amount is its scrap value.","es":""},"correct":false,"feedback":{"fr":"","en":"This tests on its own an asset without cash flows of its own when no exception allows it.","es":""}},{"id":"D","text":{"fr":"","en":"Estimate the recoverable amount of the CGU to which the line belongs, as no exception to the asset-by-asset test applies.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000101","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.LEVEL_OF_TEST"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000101","tested_point":"QST.IAS36.000101","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"level-of-test"},"references":["IAS 36 §22"],"exercise":{"prompt":{"fr":"","en":"In which of the following cases may the recoverable amount be determined for the individual asset, rather than for its CGU?","es":""},"explanation":{"fr":"","en":"The recoverable amount is determined for the individual asset when it generates largely independent cash inflows. Otherwise, the CGU level is used, unless fair value less costs of disposal exceeds the carrying amount or value in use can be estimated to be close to that fair value, which itself can be measured (IAS 36, para. 22). The size of the asset and management's preferences are not criteria.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset does not generate largely independent cash inflows, its fair value less costs of disposal is below its carrying amount and its value in use is far from that fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"No exception applies in this case: the test is performed at the CGU level.","es":""}},{"id":"B","text":{"fr":"","en":"The asset generates cash inflows that are largely independent of those from other assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The asset represents a significant amount in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the asset is not a criterion for the level of the test.","es":""}},{"id":"D","text":{"fr":"","en":"The asset's fair value less costs of disposal is higher than its carrying amount.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The asset's value in use can be estimated to be close to its fair value less costs of disposal, and the latter can be measured.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"Management prefers an asset-by-asset test to simplify its reporting.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the test is not a matter of management preference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000102","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000102","tested_point":"QST.IAS36.000102","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"True or false? To obtain the fair value less costs of disposal of a machine, the entity deducts, among other things, the legal fees of the sale, the duties and taxes on the transaction and the cost of removing the machine, provided these costs are not already recognised as liabilities.","es":""},"explanation":{"fr":"","en":"True. Deductible costs of disposal are costs not yet recognised as liabilities that relate to the sale itself: legal costs, transaction duties and taxes, removal costs and direct costs of bringing the asset into condition for its sale (IAS 36, para. 28).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000103","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000103","tested_point":"QST.IAS36.000103","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"True or false? When a company sells a workshop, the termination benefits it will pay to employees and the costs of reorganising its other sites after the disposal are costs of disposal to be deducted from the fair value of the workshop.","es":""},"explanation":{"fr":"","en":"False. Termination benefits and reorganisation costs that follow the disposal of an asset are not costs of disposal: they are not deducted in determining fair value less costs of disposal (IAS 36, para. 28).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000104","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000104","tested_point":"QST.IAS36.000104","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Valmont plans to sell an industrial press. Which of the following costs is a cost of disposal to be deducted from the fair value of the press?","es":""},"explanation":{"fr":"","en":"The cost of dismantling and removing the press is a deductible cost of disposal. Termination benefits and reorganisation after the disposal are excluded, and a cost already recognised as a liability is not deducted (IAS 36, para. 28).","es":""},"common_error":{"fr":"","en":"Deducting termination benefits because they are triggered by the decision to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Termination benefits of the press operators, payable after the sale","es":""},"correct":false,"feedback":{"fr":"","en":"Termination benefits arising from the disposal are not costs of disposal.","es":""}},{"id":"B","text":{"fr":"","en":"Dismantling and removing the press before its delivery","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An appraisal invoice on the press, already recognised as a trade payable at the year-end","es":""},"correct":false,"feedback":{"fr":"","en":"A cost already recognised as a liability is not deducted a second time.","es":""}},{"id":"D","text":{"fr":"","en":"Reorganising the remaining production lines after the disposal","es":""},"correct":false,"feedback":{"fr":"","en":"Reorganisation costs following the disposal are excluded from costs of disposal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000105","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000105","tested_point":"QST.IAS36.000105","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §20"],"exercise":{"prompt":{"fr":"","en":"Kestral holds a cold-storage warehouse. There is no quoted price in an active market for an identical warehouse. Which statement is correct?","es":""},"explanation":{"fr":"","en":"The absence of a quoted price in an active market for an identical asset often does not prevent fair value less costs of disposal from being measured. If there is no reliable basis for estimating the price of an orderly transaction between market participants, the entity may use value in use as recoverable amount (IAS 36, para. 20).","es":""},"common_error":{"fr":"","en":"Concluding that no test is possible because there is no quoted price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Without a quoted price, fair value less costs of disposal can never be determined, so the test is impossible","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a quoted price often does not prevent fair value less costs of disposal from being measured.","es":""}},{"id":"B","text":{"fr":"","en":"Without a quoted price, recoverable amount is deemed equal to the carrying amount of the warehouse, with no further calculation","es":""},"correct":false,"feedback":{"fr":"","en":"No rule sets such an equality: recoverable amount must be estimated.","es":""}},{"id":"C","text":{"fr":"","en":"This fair value can often still be measured; failing a reliable basis, value in use may serve as recoverable amount","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The price paid when the warehouse was acquired must be used as fair value, however old it is","es":""},"correct":false,"feedback":{"fr":"","en":"A historical price does not reflect the price of an orderly transaction at the measurement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000106","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000106","tested_point":"QST.IAS36.000106","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Embrun is disposing of a bottling line. Which of the following costs are costs of disposal to be deducted in determining fair value less costs of disposal? (several answers)","es":""},"explanation":{"fr":"","en":"Costs of disposal not yet recognised as liabilities are deducted: legal costs, transaction duties and direct costs of bringing the asset into condition for sale. Termination benefits and reorganisation after the disposal are excluded, as is a cost already recognised as a payable (IAS 36, para. 28).","es":""},"common_error":{"fr":"","en":"Deducting every cost triggered by the decision to dispose, including employee and reorganisation costs.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fees of the lawyer drafting the deed of sale","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The termination benefits of the employees assigned to the line","es":""},"correct":false,"feedback":{"fr":"","en":"Termination benefits linked to the disposal are not costs of disposal.","es":""}},{"id":"C","text":{"fr":"","en":"The registration duties payable on the transaction","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The cleaning and restoration directly needed to deliver the line in saleable condition","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The reorganisation of the remaining workshops after the disposal","es":""},"correct":false,"feedback":{"fr":"","en":"Reorganisation costs following the disposal are excluded.","es":""}},{"id":"F","text":{"fr":"","en":"A transport service already recognised as a payable at the year-end","es":""},"correct":false,"feedback":{"fr":"","en":"A cost already recognised as a liability is not deducted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000107","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000301","tested_point":"VG.IAS36.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Brévalle is considering selling a packaging line. Its fair value, determined under IFRS 13, is {fair_value} (given). The sale would involve {legal_fees} of legal fees, {transfer_taxes} of taxes on the transaction and {removal_costs} for dismantling and removing the line. Brévalle would also pay {severance_pay} of termination benefits to the operators after the disposal. None of these costs is recognised as a liability. What is the fair value less costs of disposal?","es":""},"explanation":{"fr":"","en":"Legal fees, transaction taxes and removal are costs of disposal; termination benefits following the disposal are not (IAS 36, para. 28). Fair value less costs of disposal: 500,000 − 8,000 − 5,000 − 12,000 = 475,000.","es":""},"common_error":{"fr":"","en":"Also deducting the termination benefits (445,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"500000","unit":"EUR"},{"id":"legal_fees","value":"8000","unit":"EUR"},{"id":"transfer_taxes","value":"5000","unit":"EUR"},{"id":"removal_costs","value":"12000","unit":"EUR"},{"id":"severance_pay","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the line (IFRS 13, given)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Legal fees of the sale","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Taxes on the transaction","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Dismantling and removal","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Termination benefits after the disposal","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":475000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the line (IFRS 13, given)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Legal fees of the sale","es":""},"value":8000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Taxes on the transaction","es":""},"value":5000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Dismantling and removal","es":""},"value":12000,"unit":"EUR"}],"result":475000,"unit":"EUR"}],"references":["REF.IAS36.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000108","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000301","tested_point":"VG.IAS36.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Hydrostal, a power plant operator, is putting a standby turbine up for sale; its fair value under IFRS 13 is {fair_value} (given). To complete the deal, it will have to pay {transaction_tax} of transfer duties, pay {legal_fees} to a law firm and incur {preparation_costs} of overhaul directly needed to deliver the turbine in saleable condition. An expert report on the turbine, invoiced {recognised_expert_fee}, is already included in trade payables. Finally, Hydrostal plans {reorganisation_costs} of reorganisation of its teams after the sale. Calculate the fair value less costs of disposal.","es":""},"explanation":{"fr":"","en":"Transfer duties, legal fees and the overhaul directly needed for the sale are deducted. The expert report, already recognised as a liability, is not deducted, and the reorganisation after the sale is not a cost of disposal (IAS 36, para. 28). Calculation: 1,240,000 − 18,000 − 9,500 − 22,500 = 1,190,000.","es":""},"common_error":{"fr":"","en":"Also deducting the expert report already recognised (1,184,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"1240000","unit":"EUR"},{"id":"transaction_tax","value":"18000","unit":"EUR"},{"id":"legal_fees","value":"9500","unit":"EUR"},{"id":"preparation_costs","value":"22500","unit":"EUR"},{"id":"recognised_expert_fee","value":"6000","unit":"EUR"},{"id":"reorganisation_costs","value":"40000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the turbine (IFRS 13, given)","es":""},"value":"1240000","unit":"EUR"},{"label":{"fr":"","en":"Transfer duties","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Law firm fees","es":""},"value":"9500","unit":"EUR"},{"label":{"fr":"","en":"Overhaul to bring into saleable condition","es":""},"value":"22500","unit":"EUR"},{"label":{"fr":"","en":"Expert report already in trade payables","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Reorganisation after the sale","es":""},"value":"40000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":1190000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the turbine (IFRS 13, given)","es":""},"value":1240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transfer duties","es":""},"value":18000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Law firm fees","es":""},"value":9500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Overhaul to bring into saleable condition","es":""},"value":22500,"unit":"EUR"}],"result":1190000,"unit":"EUR"}],"rationale":{"fr":"","en":"The expert report, already recognised as a liability, is not deducted, and the reorganisation after the sale is not a cost of disposal (IAS 36, para. 28).","es":""},"references":["REF.IAS36.28"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000109","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD","IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000302","tested_point":"VG.IAS36.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28","IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"At the year-end, Corvane tests a laser-cutting machine with a carrying amount of {carrying_amount}. Its fair value (IFRS 13, given) is {fair_value}. A sale would involve {legal_fees} of legal costs and {removal_costs} of removal; Corvane also estimates at {reorganisation_costs} the reorganisation of its workshop that would follow the disposal. None of these costs is recognised as a liability. Value in use, calculated separately, is {value_in_use}. Determine the fair value less costs of disposal, the recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"Costs of disposal: legal costs and removal; the reorganisation following the disposal is excluded (IAS 36, para. 28). Fair value less costs of disposal: 760,000 − 7,000 − 15,000 = 738,000. Recoverable amount is the higher of this net fair value and value in use (IAS 36, para. 18): the maximum of 738,000 and 735,000 gives 738,000. The carrying amount exceeds that amount: impairment loss of 820,000 − 738,000 = 82,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Deducting the reorganisation: net fair value of 713,000, recoverable amount wrongly taken at 735,000 and a loss of 85,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"820000","unit":"EUR"},{"id":"fair_value","value":"760000","unit":"EUR"},{"id":"legal_fees","value":"7000","unit":"EUR"},{"id":"removal_costs","value":"15000","unit":"EUR"},{"id":"reorganisation_costs","value":"25000","unit":"EUR"},{"id":"value_in_use","value":"735000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the machine","es":""},"value":"820000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":"760000","unit":"EUR"},{"label":{"fr":"","en":"Legal costs of the sale","es":""},"value":"7000","unit":"EUR"},{"label":{"fr":"","en":"Removal costs","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Reorganisation of the workshop after the disposal","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Value in use (given)","es":""},"value":"735000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":738000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":738000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":82000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":760000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Legal costs of the sale","es":""},"value":7000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Removal costs","es":""},"value":15000,"unit":"EUR"}],"result":738000,"unit":"EUR"},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the machine","es":""},"value":820000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":738000,"unit":"EUR"}],"result":82000,"unit":"EUR","rationale":{"fr":"","en":"The carrying amount exceeds that amount: impairment loss of 820,000 − 738,000 = 82,000 (IAS 36, para. 59).","es":""}}],"references":["REF.IAS36.28","REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000110","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD","IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000302","tested_point":"VG.IAS36.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28","IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Aubrac Logistique owns a fleet of order-picking robots carried at {carrying_amount}. An independent valuer sets its fair value under IFRS 13 at {fair_value} (given), which is more than the carrying amount. However, disposing of the fleet would cost {stamp_duty} of stamp duty, {legal_fees} of lawyer's fees and {preparation_costs} of refurbishment directly required for the sale. A dismantling adviser has already invoiced {recognised_consultant_fee}, an amount recognised as a payable at the year-end. Value in use is {value_in_use}. What are the fair value less costs of disposal, the recoverable amount and any impairment loss?","es":""},"explanation":{"fr":"","en":"Stamp duty, lawyer's fees and refurbishment are costs of disposal; the adviser already recognised as a payable is not deducted (IAS 36, para. 28). Fair value less costs of disposal: 2,400,000 − 36,000 − 14,000 − 50,000 = 2,300,000. Recoverable amount: the higher of 2,300,000 and 2,290,000, i.e. 2,300,000 (IAS 36, para. 18). Although gross fair value exceeds the carrying amount, recoverable amount is below it: impairment loss of 2,350,000 − 2,300,000 = 50,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Concluding there is no loss because gross fair value exceeds the carrying amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"2350000","unit":"EUR"},{"id":"fair_value","value":"2400000","unit":"EUR"},{"id":"stamp_duty","value":"36000","unit":"EUR"},{"id":"legal_fees","value":"14000","unit":"EUR"},{"id":"preparation_costs","value":"50000","unit":"EUR"},{"id":"recognised_consultant_fee","value":"20000","unit":"EUR"},{"id":"value_in_use","value":"2290000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the robot fleet","es":""},"value":"2350000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Stamp duty","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Lawyer's fees","es":""},"value":"14000","unit":"EUR"},{"label":{"fr":"","en":"Refurbishment required for the sale","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Adviser already recognised as a payable","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Value in use (given)","es":""},"value":"2290000","unit":"EUR"}],"steps":[{"id":"FVLCD","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":2300000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":2300000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (IFRS 13, given)","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stamp duty","es":""},"value":36000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lawyer's fees","es":""},"value":14000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Refurbishment required for the sale","es":""},"value":50000,"unit":"EUR"}],"result":2300000,"unit":"EUR"},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the robot fleet","es":""},"value":2350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":2300000,"unit":"EUR"}],"result":50000,"unit":"EUR","rationale":{"fr":"","en":"Although gross fair value exceeds the carrying amount, recoverable amount is below it: impairment loss of 2,350,000 − 2,300,000 = 50,000 (IAS 36, para. 59).","es":""}}],"references":["REF.IAS36.28","REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000111","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000111","tested_point":"QST.IAS36.000111","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §28"],"exercise":{"prompt":{"fr":"","en":"Selvane is putting a business plot of land up for sale; its fair value, determined under IFRS 13, is 900,000 (given). The notary has already drafted the preliminary agreement: the fees of 15,000 were invoiced and recognised as a trade payable before the year-end. Transaction taxes, i.e. 20,000, will only be due when the final deed is signed and are not yet recognised. What fair value less costs of disposal should Selvane use at the year-end?","es":""},"explanation":{"fr":"","en":"Only costs of disposal not yet recognised as liabilities are deducted (IAS 36, para. 28). The notary's fees are already in payables: deducting them would count this cost twice. Transaction taxes, not recognised, are deducted: 900,000 − 20,000 = 880,000.","es":""},"common_error":{"fr":"","en":"Deducting every cost of the sale without checking whether it is recognised (865,000).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"865,000, deducting the notary's fees and the taxes","es":""},"correct":false,"feedback":{"fr":"","en":"Fees already recognised as a payable are not deducted a second time.","es":""}},{"id":"B","text":{"fr":"","en":"880,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"900,000, since no cost has yet been paid","es":""},"correct":false,"feedback":{"fr":"","en":"Transaction taxes must still be deducted even though they have not yet been paid.","es":""}},{"id":"D","text":{"fr":"","en":"885,000, deducting only the fees already invoiced","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: the cost already in payables is excluded and the unrecognised tax is deducted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000112","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000112","tested_point":"QST.IAS36.000112","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §20","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Orbelis, an aerospace equipment manufacturer, built a unique test bench for its own needs, which shows indications of impairment. No transaction on comparable equipment can be observed and the valuer consulted states that there is no reliable basis for estimating the price at which an orderly transaction between market participants would take place. The carrying amount of the bench is 400,000 and its value in use is 340,000. What should Orbelis do?","es":""},"explanation":{"fr":"","en":"When there is no reliable basis for estimating the price of an orderly transaction between market participants, the entity may use value in use as recoverable amount (IAS 36, para. 20). The carrying amount of 400,000 exceeds this recoverable amount of 340,000: the asset is reduced to 340,000 and the reduction of 60,000 is an impairment loss (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Abandoning the impairment test because fair value is unknown.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Forgo the test, since recoverable amount cannot be determined without a fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The test remains possible: value in use may serve as recoverable amount.","es":""}},{"id":"B","text":{"fr":"","en":"Keep the bench at 400,000, the carrying amount standing in for recoverable amount in the absence of a price","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is never a measure of recoverable amount.","es":""}},{"id":"C","text":{"fr":"","en":"Use the cost of building a new bench, i.e. 450,000, as fair value and recognise no loss","es":""},"correct":false,"feedback":{"fr":"","en":"The cost of a new bench is not the price of an orderly transaction on the existing bench; the valuer found that no reliable basis exists.","es":""}},{"id":"D","text":{"fr":"","en":"Use the value in use of 340,000 and recognise an impairment loss of 60,000","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000113","standard_id":"IAS36","concept_ids":["IAS36.RECOVERABLE_AMOUNT.FVLCD","IAS36.CGU.CARRYING_AMOUNT","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000113","tested_point":"QST.IAS36.000113","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §29","IAS 36 §78","IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Ferrandes operates a quarry that forms a cash-generating unit (CGU). The carrying amount of the CGU's assets is 1,000,000. A provision for site restoration is recognised at 400,000; any buyer of the quarry would have to assume this obligation. A firm offer covers the assets and the obligation together: the fair value less costs of disposal of this package is 520,000. The value in use of the assets, before taking the restoration obligation into account, is 560,000. What is the impairment loss of the CGU?","es":""},"explanation":{"fr":"","en":"When the disposal requires the buyer to assume a liability and only a single net fair value is available for the package, the treatment of paragraph 78 applies (IAS 36, para. 29): the carrying amount of the liability is deducted both from the carrying amount of the CGU and from its value in use (IAS 36, para. 78). Carrying amount: 1,000,000 − 400,000 = 600,000; value in use: 560,000 − 400,000 = 160,000; net fair value: 520,000. Recoverable amount is the higher of the two, i.e. 520,000 (IAS 36, para. 18), hence a loss of 600,000 − 520,000 = 80,000.","es":""},"common_error":{"fr":"","en":"Comparing a gross carrying amount of assets with a fair value already net of the liability assumed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"440,000: 1,000,000 compared with the value in use of 560,000, ignoring the obligation","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation assumed by the buyer cannot be ignored: the comparison must be between consistent amounts.","es":""}},{"id":"B","text":{"fr":"","en":"480,000: 1,000,000 compared with the net fair value of 520,000","es":""},"correct":false,"feedback":{"fr":"","en":"The net fair value covers the assets and the liability together: the carrying amount must also be reduced by the liability.","es":""}},{"id":"C","text":{"fr":"","en":"80,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"40,000: 600,000 compared with the value in use of 560,000","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is deducted from the carrying amount but also from value in use, which becomes 160,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000114","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000114","tested_point":"QST.IAS36.000114","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §31"],"exercise":{"prompt":{"fr":"","en":"True or false? Calculating value in use involves two steps: estimating the future cash inflows and outflows from continuing use of the asset and from its ultimate disposal, then applying an appropriate discount rate to them.","es":""},"explanation":{"fr":"","en":"True. Value in use is built by first estimating the future cash flows from use and from ultimate disposal of the asset, and then discounting those cash flows at an appropriate rate (IAS 36, para. 31).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000115","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000115","tested_point":"QST.IAS36.000115","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"True or false? Value in use is limited to a single scenario of future cash flows: expectations about possible variations in the amount or timing of those cash flows do not need to be reflected in it.","es":""},"explanation":{"fr":"","en":"False. Among the elements that value in use must reflect are, in addition to the estimate of future cash flows, expectations about possible variations in their amount or timing, the time value of money, the price for bearing the uncertainty inherent in the asset and other factors such as illiquidity (IAS 36, para. 30).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000116","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000116","tested_point":"QST.IAS36.000116","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"Which of the following is one of the elements that the calculation of an asset's value in use must reflect?","es":""},"explanation":{"fr":"","en":"Value in use reflects the future cash flows expected from the asset, expectations about variations in their amount or timing, the time value of money, the price for bearing the uncertainty inherent in the asset and other factors such as illiquidity (IAS 36, para. 30). Historical cost, carrying amount and share price are not among them.","es":""},"common_error":{"fr":"","en":"Confusing the carrying amount, the other side of the comparison, with an input to value in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The historical cost originally paid to acquire the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is a past figure; value in use looks to future cash flows.","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the asset in the statement of financial position at the test date","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is what recoverable amount is compared with, not an element of value in use.","es":""}},{"id":"C","text":{"fr":"","en":"The entity's share price at the end of the reporting period","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's share price does not measure the cash flows expected from the asset being tested.","es":""}},{"id":"D","text":{"fr":"","en":"The price for bearing the uncertainty inherent in the asset","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000117","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000117","tested_point":"QST.IAS36.000117","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §53A"],"exercise":{"prompt":{"fr":"","en":"True or false? The fair value of a warehouse includes the specific synergies that its current owner obtains from combining the warehouse with its own network of stores.","es":""},"explanation":{"fr":"","en":"False. Fair value rests on the assumptions market participants would use; entity-specific factors, such as synergies from combining the asset with the entity's other assets, belong to value in use (IAS 36, para. 53A).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000118","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000118","tested_point":"QST.IAS36.000118","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §32","IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"To calculate the value in use of a fishing vessel, Morvent's analyst must reflect the price for bearing the uncertainty inherent in the vessel and its illiquidity. How can these elements be incorporated?","es":""},"explanation":{"fr":"","en":"Value in use reflects, among other things, the price for bearing the uncertainty inherent in the asset and other factors such as illiquidity (IAS 36, para. 30). These elements, like expected variations in the cash flows, may be reflected either in the cash flows or in the discount rate; Appendix A describes the corresponding present value techniques (IAS 36, para. 32).","es":""},"common_error":{"fr":"","en":"Believing that risk can only be reflected through the discount rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Solely by adjusting the projected cash flows, since the discount rate can only reflect the time value of money","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires the cash flows to be used: these elements may also be reflected in the rate.","es":""}},{"id":"B","text":{"fr":"","en":"Either in the cash flows or in the discount rate","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Solely by increasing the discount rate, since the cash flows must remain the budget figures without any adjustment","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires the rate to be used: these elements may also be reflected in the cash flows.","es":""}},{"id":"D","text":{"fr":"","en":"They are not incorporated: value in use reflects only expected cash flows and the time value of money","es":""},"correct":false,"feedback":{"fr":"","en":"The price for uncertainty and illiquidity are among the elements value in use must reflect.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000119","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000119","tested_point":"QST.IAS36.000119","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §53A"],"exercise":{"prompt":{"fr":"","en":"Which of the following are entity-specific factors, not available to other market participants, that value in use may reflect whereas fair value does not reflect them? (several answers)","es":""},"explanation":{"fr":"","en":"Fair value reflects the assumptions of market participants, whereas value in use reflects entity-specific factors: synergies with other assets or the value of a group of assets, specific legal rights or restrictions, and tax benefits or burdens specific to the holder (IAS 36, para. 53A).","es":""},"common_error":{"fr":"","en":"Including in fair value synergies that only the current holder can obtain.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The assumptions market participants would use to set a price","es":""},"correct":false,"feedback":{"fr":"","en":"Market participant assumptions are precisely the basis of fair value.","es":""}},{"id":"B","text":{"fr":"","en":"Synergies between the asset being tested and other assets of the entity","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A legal right specific to the entity that holds the asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The price observed in recent transactions on identical assets","es":""},"correct":false,"feedback":{"fr":"","en":"A transaction price observed in the market feeds fair value; it is not an entity-specific factor.","es":""}},{"id":"E","text":{"fr":"","en":"A tax benefit specific to the current owner of the asset","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000120","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000120","tested_point":"QST.IAS36.000120","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §53A","IAS 36 §31"],"exercise":{"prompt":{"fr":"","en":"The Tessaro group is testing a biscuit factory. The factory supplies the group's exclusive distribution network, which gives it synergies that no other buyer would obtain. The head of strategy prepares both the fair value less costs of disposal and the value in use of the factory. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Fair value reflects market participant assumptions, whereas value in use reflects entity-specific factors, such as the synergies with Tessaro's exclusive network (IAS 36, para. 53A). Value in use is calculated by estimating the cash flows from use and from ultimate disposal of the factory, then discounting them (IAS 36, para. 31). The two measures therefore need not converge.","es":""},"common_error":{"fr":"","en":"Inflating fair value with synergies specific to the group.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The synergies with Tessaro's exclusive network may be reflected in value in use","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"These synergies must also be included in fair value, since they are real for Tessaro","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value does not reflect synergies that only the current holder can obtain.","es":""}},{"id":"C","text":{"fr":"","en":"Fair value rests on the assumptions market participants would use","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Value in use is obtained by estimating the cash flows from use and from ultimate disposal of the factory, then discounting them","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Since the two measures must converge, value in use must be aligned with fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The two measures rest on different bases and may legitimately differ.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000121","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000303","tested_point":"VG.IAS36.000303","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §31","IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"Fabrel estimates the net cash flows that an extrusion machine will generate over its remaining useful life of three years, including the ultimate disposal flow: {cash_flow_year_1} in the first year, {cash_flow_year_2} in the second and {cash_flow_year_3} in the third. The cash flows are assumed to be received at the end of each year. The discount rate used (given) is {discount_rate}. What is the value in use of the machine?","es":""},"explanation":{"fr":"","en":"Estimating the cash flows is followed by discounting them (IAS 36, para. 31), which reflects the time value of money (IAS 36, para. 30). Year 1: 220,000 / 1.10 = 200,000; year 2: 121,000 / 1.21 = 100,000; year 3: 199,650 / 1.331 = 150,000. Value in use: 200,000 + 100,000 + 150,000 = 450,000.","es":""},"common_error":{"fr":"","en":"Adding up the cash flows without discounting them (540,650).","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_flow_year_1","value":"220000","unit":"EUR"},{"id":"cash_flow_year_2","value":"121000","unit":"EUR"},{"id":"cash_flow_year_3","value":"199650","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net cash flow, year 1","es":""},"value":"220000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow, year 2","es":""},"value":"121000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow, year 3 (including ultimate disposal)","es":""},"value":"199650","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (given)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use","es":""},"answer":450000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000122","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000303","tested_point":"VG.IAS36.000303","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §31","IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"A river shipowner, Navilia, operates a barge with three operating years remaining. After all necessary outflows and the final net disposal proceeds, the expected cash surpluses amount to {inflow_year_1} at the end of the first year, {inflow_year_2} at the end of the second, when an exceptional charter contract is planned, and {inflow_year_3} at the end of the last. Navilia discounts these amounts at the given rate of {discount_rate}. Determine the value in use of the barge.","es":""},"explanation":{"fr":"","en":"Value in use discounts the estimated cash flows (IAS 36, para. 31) to reflect the time value of money (IAS 36, para. 30). Year 1: 105,000 / 1.05 = 100,000; year 2: 330,750 / 1.1025 = 300,000; year 3: 231,525 / 1.157625 = 200,000. Value in use: 100,000 + 300,000 + 200,000 = 600,000.","es":""},"common_error":{"fr":"","en":"Using the undiscounted sum of the cash flows (667,275).","es":""},"format":"CALCULATION","placeholders":[{"id":"inflow_year_1","value":"105000","unit":"EUR"},{"id":"inflow_year_2","value":"330750","unit":"EUR"},{"id":"inflow_year_3","value":"231525","unit":"EUR"},{"id":"discount_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cash surplus, end of year 1","es":""},"value":"105000","unit":"EUR"},{"label":{"fr":"","en":"Cash surplus, end of year 2","es":""},"value":"330750","unit":"EUR"},{"label":{"fr":"","en":"Cash surplus, end of year 3","es":""},"value":"231525","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (given)","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use of the barge","es":""},"answer":600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"VALUE_IN_USE","meaning":{"fr":"","en":"Value in use of the barge","es":""},"expression":"(a / (1 + b)) + (c / (1 + b)^2) + (d / (1 + b)^3)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash surplus, end of year 1","es":""},"value":105000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (given)","es":""},"value":5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Cash surplus, end of year 2","es":""},"value":330750,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Cash surplus, end of year 3","es":""},"value":231525,"unit":"EUR"}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"Value in use discounts the estimated cash flows (IAS 36, para. 31) to reflect the time value of money (IAS 36, para. 30).","es":""},"references":["REF.IAS36.31","REF.IAS36.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000123","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS","IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000304","tested_point":"VG.IAS36.000304","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §31","IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"The Ardéco printing works is testing a rotary press with a carrying amount of {carrying_amount} that will be used for two more years. The expected net operating cash flows, received at year-end, are {cash_flow_year_1} for year 1 and {cash_flow_year_2} for year 2. At the end of year 2, reselling the press should provide a net cash flow of {net_disposal_flow}. The discount rate (given) is {discount_rate}. Current fair value less costs of disposal is {fvlcd}. Calculate value in use, recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"Value in use includes the cash flows from use and from ultimate disposal, discounted (IAS 36, para. 31). Year 1: 165,000 / 1.10 = 150,000; year 2: (193,600 + 48,400) / 1.21 = 242,000 / 1.21 = 200,000. Value in use: 150,000 + 200,000 = 350,000. Recoverable amount: the higher of 350,000 and 340,000, i.e. 350,000 (IAS 36, para. 18). Impairment loss: 380,000 − 350,000 = 30,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Forgetting the ultimate disposal flow: value in use of 310,000, recoverable amount of 340,000 and a loss of 40,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_flow_year_1","value":"165000","unit":"EUR"},{"id":"cash_flow_year_2","value":"193600","unit":"EUR"},{"id":"net_disposal_flow","value":"48400","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"},{"id":"carrying_amount","value":"380000","unit":"EUR"},{"id":"fvlcd","value":"340000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net operating cash flow, year 1","es":""},"value":"165000","unit":"EUR"},{"label":{"fr":"","en":"Net operating cash flow, year 2","es":""},"value":"193600","unit":"EUR"},{"label":{"fr":"","en":"Net disposal cash flow at the end of year 2","es":""},"value":"48400","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (given)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Carrying amount of the press","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal (given)","es":""},"value":"340000","unit":"EUR"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":350000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the press","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":350000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS36.31","REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000124","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS","IAS36.RECOVERABLE_AMOUNT.DEFINITION","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000304","tested_point":"VG.IAS36.000304","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §31","IAS 36 §18","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A veterinary clinic, Vetalpe, is reviewing a scanner carried in its statement of financial position at {carrying_amount}. It has two years of use left. The finance department expects {operating_flow_1} of net operating cash at the end of the first year, then {operating_flow_2} at the end of the second, when the device would be sold to a refurbisher for an amount net of costs of disposal of {scrap_proceeds_net}. The discount rate provided is {discount_rate}. A broker currently estimates the scanner's fair value less costs of disposal at {fvlcd}. Determine value in use, recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"The cash flows from use and from ultimate disposal are estimated and then discounted (IAS 36, para. 31). Year 1: 162,000 / 1.08 = 150,000; year 2: (87,480 + 29,160) / 1.1664 = 116,640 / 1.1664 = 100,000. Value in use: 250,000. Recoverable amount is the higher of 250,000 and 262,000, i.e. 262,000 (IAS 36, para. 18). Impairment loss: 280,000 − 262,000 = 18,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Always using value in use as recoverable amount (loss of 30,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"operating_flow_1","value":"162000","unit":"EUR"},{"id":"operating_flow_2","value":"87480","unit":"EUR"},{"id":"scrap_proceeds_net","value":"29160","unit":"EUR"},{"id":"discount_rate","value":"8","unit":"PERCENT"},{"id":"carrying_amount","value":"280000","unit":"EUR"},{"id":"fvlcd","value":"262000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net operating cash, year 1","es":""},"value":"162000","unit":"EUR"},{"label":{"fr":"","en":"Net operating cash, year 2","es":""},"value":"87480","unit":"EUR"},{"label":{"fr":"","en":"Net disposal proceeds at the end of year 2","es":""},"value":"29160","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (given)","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Carrying amount of the scanner","es":""},"value":"280000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal (given)","es":""},"value":"262000","unit":"EUR"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":262000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":18000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the scanner","es":""},"value":280000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal (given)","es":""},"value":262000,"unit":"EUR"}],"result":18000,"unit":"EUR"}],"references":["REF.IAS36.31","REF.IAS36.18","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000125","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000125","tested_point":"QST.IAS36.000125","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §53A"],"exercise":{"prompt":{"fr":"","en":"Marivel operates a port terminal. It holds, personally, a non-transferable administrative authorisation to operate the terminal at night; a buyer of the terminal could not rely on it. How is this authorisation taken into account in the two components of the terminal's recoverable amount?","es":""},"explanation":{"fr":"","en":"Fair value reflects the assumptions market participants would use, whereas value in use reflects entity-specific factors, including legal rights or restrictions specific to the entity (IAS 36, para. 53A). Marivel's non-transferable authorisation may therefore increase value in use without increasing fair value.","es":""},"common_error":{"fr":"","en":"Including in fair value a benefit that only the current holder can exercise.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is included in fair value as well as in value in use, since it increases the terminal's cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"A buyer could not use this right: it is not part of market participant assumptions.","es":""}},{"id":"B","text":{"fr":"","en":"It is excluded from both measures, because a non-transferable right has no carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"Having no carrying amount of its own does not stop this right from affecting the cash flows Marivel expects from the terminal.","es":""}},{"id":"C","text":{"fr":"","en":"Value in use may reflect it; fair value, based on market participant assumptions, does not","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is included only in fair value, since legal rights always call for a market analysis","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: a right specific to the entity belongs to value in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000126","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000126","tested_point":"QST.IAS36.000126","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"elements-rule"},"references":["IAS 36 §30"],"exercise":{"prompt":{"fr":"","en":"True or false? In value in use, the time value of money is represented by the current market risk-free rate of interest.","es":""},"explanation":{"fr":"","en":"True. The time value of money is one of the elements reflected in value in use and it is represented by the current market risk-free rate; the price for bearing the uncertainty inherent in the asset is a separate element (IAS 36, para. 30).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000127","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000127","tested_point":"QST.IAS36.000127","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §33","IAS 36 §35"],"exercise":{"prompt":{"fr":"","en":"To calculate the value in use of a plant, Delmare relies on its budgets and forecasts. What period may these detailed budgets and forecasts cover?","es":""},"explanation":{"fr":"","en":"Projections based on budgets and forecasts cover a maximum of five years, unless a longer period can be justified (IAS 36, para. 33). This limit reflects the difficulty of forecasting reliably further out; a longer horizon is allowed only if management demonstrates its ability to forecast reliably (IAS 36, para. 35).","es":""},"common_error":{"fr":"","en":"Projecting year by year over the entire remaining useful life without demonstrating that the forecasts are reliable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Three years at most, with no exception possible, whatever the quality of the forecasts","es":""},"correct":false,"feedback":{"fr":"","en":"The limit is five years, and a longer period may be justified.","es":""}},{"id":"B","text":{"fr":"","en":"The entire remaining useful life of the plant, however long, without any particular justification","es":""},"correct":false,"feedback":{"fr":"","en":"Beyond the budget horizon, cash flows are extrapolated; a long detailed horizon must be justified.","es":""}},{"id":"C","text":{"fr":"","en":"Ten years at least, so as to cover a full economic cycle","es":""},"correct":false,"feedback":{"fr":"","en":"No minimum of ten years is required; on the contrary, a ceiling of five years applies in principle.","es":""}},{"id":"D","text":{"fr":"","en":"Five years at most, unless a longer period is justified","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000128","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000128","tested_point":"QST.IAS36.000128","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §33"],"exercise":{"prompt":{"fr":"","en":"Pradel is testing a production unit. Three sets of forecasts are available. Which one should serve as the basis for the cash flow projections in value in use?","es":""},"explanation":{"fr":"","en":"Projections are based on the most recent budgets and forecasts approved by management, excluding the cash flows expected from future restructurings not yet committed and from improving or enhancing the asset's performance (IAS 36, para. 33).","es":""},"common_error":{"fr":"","en":"Including in the projections the savings of a restructuring that is merely being considered.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plan prepared by the unit's director, more optimistic, which management has not yet reviewed","es":""},"correct":false,"feedback":{"fr":"","en":"Projections are based on the most recent budgets approved by management, not on a plan that has not been reviewed.","es":""}},{"id":"B","text":{"fr":"","en":"The most recent budget approved by management, adjusted to remove the effects of an uncommitted restructuring and of enhancement investments","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The most recent approved budget, including the savings of a restructuring the board is studying without being committed to it","es":""},"correct":false,"feedback":{"fr":"","en":"The effects of an uncommitted restructuring are excluded from the projections.","es":""}},{"id":"D","text":{"fr":"","en":"The budget approved three years ago, considered more reliable by management control","es":""},"correct":false,"feedback":{"fr":"","en":"The most recent approved budget must be used, not an old one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000129","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000129","tested_point":"QST.IAS36.000129","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §33"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the cash flow projections used for value in use are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Projections rest on reasonable and supportable assumptions, giving greater weight to external evidence; they are based on the most recent approved budgets, excluding uncommitted restructurings and enhancements, over five years at most unless justified; beyond that, they are extrapolated at a steady or declining rate that does not exceed the long-term average unless justified (IAS 36, para. 33).","es":""},"common_error":{"fr":"","en":"Using a terminal growth rate above the long-term average on the sole basis of management's conviction.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Beyond the budget horizon, the growth rate may freely exceed the market's long-term average if management is convinced of it","es":""},"correct":false,"feedback":{"fr":"","en":"The rate does not exceed the long-term average unless justified; management's conviction is not enough.","es":""}},{"id":"B","text":{"fr":"","en":"Assumptions must be reasonable and supportable, and external evidence must be given greater weight","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Beyond the budget horizon, cash flows are extrapolated using a steady or declining growth rate, unless an increasing rate is justified","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Projections include the inflows that planned but not yet committed enhancement investments would bring","es":""},"correct":false,"feedback":{"fr":"","en":"Cash flows from enhancing performance are excluded from the budgets used.","es":""}},{"id":"E","text":{"fr":"","en":"Detailed budgets and forecasts cover a maximum of five years, unless a longer period is justified","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000130","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000130","tested_point":"QST.IAS36.000130","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §33","IAS 36 §35"],"exercise":{"prompt":{"fr":"","en":"Lavandor's analyst documents the value in use of an industrial laundry as follows: (A) he starts from the most recent budget approved by management; (B) he projects the cash flows year by year over nine years from detailed forecasts, with no evidence that Lavandor can forecast reliably over such a period; (C) beyond the detailed horizon, he extrapolates at a declining rate until the end of the useful life; (D) he compares his price assumptions with external market studies. Which step contains an error?","es":""},"explanation":{"fr":"","en":"Detailed budgets and forecasts cover five years at most, unless a longer period can be justified (IAS 36, para. 33). A longer horizon is allowed only if management demonstrates its ability to forecast reliably, for example based on past experience (IAS 36, para. 35). Without such evidence, the nine-year detailed projection is the error.","es":""},"common_error":{"fr":"","en":"Believing that a longer detailed horizon always makes the calculation more accurate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step (A)","es":""},"correct":false,"feedback":{"fr":"","en":"Starting from the most recent budget approved by management is precisely what is required.","es":""}},{"id":"B","text":{"fr":"","en":"Step (B)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Step (C)","es":""},"correct":false,"feedback":{"fr":"","en":"Extrapolating at a declining rate beyond the budget horizon complies with the standard.","es":""}},{"id":"D","text":{"fr":"","en":"Step (D)","es":""},"correct":false,"feedback":{"fr":"","en":"Giving weight to external evidence complies with, and is even encouraged by, the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000131","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000131","tested_point":"QST.IAS36.000131","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §33","IAS 36"],"exercise":{"prompt":{"fr":"","en":"To test a restaurant chain, Caldero uses: a five-year budget approved by management (A); footfall assumptions cross-checked against public industry statistics (B); beyond year five, a steady growth of 6% a year until the end of the projection period, whereas the long-term average growth of this restaurant market is 2% and no justification is documented (C); an analysis of the variances between budgets and actual results over the last three years (D). Which item is an error?","es":""},"explanation":{"fr":"","en":"Beyond the budget horizon, the growth rate used must not exceed the long-term average for the products, industries or markets concerned, unless justified (IAS 36, para. 33). Favourable conditions attract competitors and restrain growth: it is difficult to exceed average historical growth over a long period (IAS 36, para. 37). A rate of 6% against an average of 2%, with no justification, is therefore the error.","es":""},"common_error":{"fr":"","en":"Extending the growth pace of the first years beyond the budget.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The five-year budget approved by management","es":""},"correct":false,"feedback":{"fr":"","en":"An approved five-year budget respects the horizon that applies in principle.","es":""}},{"id":"B","text":{"fr":"","en":"The cross-check against industry statistics","es":""},"correct":false,"feedback":{"fr":"","en":"Giving greater weight to external evidence is required.","es":""}},{"id":"C","text":{"fr":"","en":"The steady growth used beyond the budget horizon","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The analysis of past variances between budgets and actual results","es":""},"correct":false,"feedback":{"fr":"","en":"Analysing past variances is an expected good practice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000132","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000132","tested_point":"QST.IAS36.000132","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §36","IAS 36 §33"],"exercise":{"prompt":{"fr":"","en":"Fontbrune runs an office furniture line in a mature market. After an approved five-year budget, its value in use model uses for the following years a growth rate that accelerates year after year, on the grounds that the brand is well known, without any objective information about the product or industry life cycle. The rest of the model complies. Which diagnosis is correct?","es":""},"explanation":{"fr":"","en":"Beyond the budget horizon, cash flows are extrapolated until the end of the useful life using a steady or declining rate, possibly zero or negative; an increasing rate is allowed only if it matches objective information about the life cycle of a product or industry (IAS 36, para. 36). Brand awareness is not such information (IAS 36, para. 33).","es":""},"common_error":{"fr":"","en":"Confusing management's confidence in its brand with objective information about the life cycle.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The model complies: brand awareness is enough to justify an increasing rate","es":""},"correct":false,"feedback":{"fr":"","en":"Brand awareness is not objective information about the product or industry life cycle.","es":""}},{"id":"B","text":{"fr":"","en":"The model is wrong: an increasing rate is allowed only with objective information about the life cycle","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The model is wrong because any positive growth is prohibited after the budget horizon","es":""},"correct":false,"feedback":{"fr":"","en":"A steady rate, even a positive one, is allowed; the problem is that the rate increases.","es":""}},{"id":"D","text":{"fr":"","en":"The model is wrong because the cash flows must stop at the end of the five-year budget horizon","es":""},"correct":false,"feedback":{"fr":"","en":"The cash flows are extrapolated beyond the budget horizon until the end of the useful life.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000133","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000133","tested_point":"QST.IAS36.000133","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §34"],"exercise":{"prompt":{"fr":"","en":"For four years, the actual cash flows of one of Sorelle's units have been about 20% below the budgeted figures. For this year's test, management uses a budget built on the same assumptions, claiming that the trend will reverse, although no new event has been identified. What should Sorelle do?","es":""},"explanation":{"fr":"","en":"Management assesses the reasonableness of its assumptions by analysing the causes of past differences between projected and actual cash flows; it ensures that they are consistent with past actual outcomes, unless new events or circumstances justify a departure (IAS 36, para. 34). Here, nothing new justifies keeping assumptions that have been contradicted for four years.","es":""},"common_error":{"fr":"","en":"Keeping a budget that is consistently contradicted on the grounds that it has been approved.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use the budget as it stands, since it is approved by management","es":""},"correct":false,"feedback":{"fr":"","en":"Approval of the budget does not remove the need to assess whether the assumptions are reasonable in the light of past variances.","es":""}},{"id":"B","text":{"fr":"","en":"Mechanically reduce all cash flows by 20% without looking for the cause of the variances","es":""},"correct":false,"feedback":{"fr":"","en":"What is expected is an analysis of the causes of the variances, not an unexplained flat reduction.","es":""}},{"id":"C","text":{"fr":"","en":"Analyse the causes of past variances and make its assumptions consistent with actual results","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Abandon value in use as unreliable and use only fair value less costs of disposal, whatever its level","es":""},"correct":false,"feedback":{"fr":"","en":"Historically optimistic forecasts call for revised assumptions, not for abandoning value in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000134","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000134","tested_point":"QST.IAS36.000134","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §36"],"exercise":{"prompt":{"fr":"","en":"Two years ago Genalys launched a medical diagnostic device. Its approved budget covers five years. Studies published by the health authority and by several independent firms show that, for this type of device, adoption by hospitals accelerates for three years after year five before declining. May Genalys use an increasing growth rate for these three years of extrapolation?","es":""},"explanation":{"fr":"","en":"Beyond the budget horizon, extrapolation normally uses a steady or declining rate; an increasing rate is allowed only if it matches objective information about the life cycle of a product or industry (IAS 36, para. 36). The studies by the health authority and independent firms provide such information for the three years concerned.","es":""},"common_error":{"fr":"","en":"Considering that an increasing rate is always prohibited after the budget horizon.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because an increasing rate is excluded in all circumstances beyond the budget horizon","es":""},"correct":false,"feedback":{"fr":"","en":"An increasing rate is allowed when it matches objective information about the life cycle.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because this rate matches objective information about the product life cycle","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, and it may do so as long as management is convinced of it, even without external data","es":""},"correct":false,"feedback":{"fr":"","en":"Management's conviction is not enough: objective information about the life cycle is required.","es":""}},{"id":"D","text":{"fr":"","en":"No, because extrapolation must always use a zero growth rate","es":""},"correct":false,"feedback":{"fr":"","en":"A zero rate is one possibility among others, not a requirement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000135","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000135","tested_point":"QST.IAS36.000135","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36 §36","IAS 36 §33"],"exercise":{"prompt":{"fr":"","en":"Argentique Plus operates photo development laboratories. External market studies show that this sector is contracting by about 4% a year. After an approved five-year budget, management proposes to extrapolate the cash flows at +2% a year until the end of the equipment's useful life. Which approach complies?","es":""},"explanation":{"fr":"","en":"Beyond the budget horizon, cash flows are extrapolated until the end of the useful life using a steady or declining rate, which may be zero or negative (IAS 36, para. 36). Assumptions must be reasonable and supportable, giving greater weight to external evidence (IAS 36, para. 33): in a market shrinking by 4% a year, a rate of +2% cannot be supported.","es":""},"common_error":{"fr":"","en":"Believing that a steady positive rate is always acceptable beyond the budget.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep +2%: a steady rate is always allowed, whatever the state of the market","es":""},"correct":false,"feedback":{"fr":"","en":"The rate must rest on reasonable and supportable assumptions; growth of +2% contradicts the external data.","es":""}},{"id":"B","text":{"fr":"","en":"Stop the projections at the end of the budget and ignore the remaining years of useful life","es":""},"correct":false,"feedback":{"fr":"","en":"Cash flows are extrapolated until the end of the useful life, not cut off at the budget horizon.","es":""}},{"id":"C","text":{"fr":"","en":"Use the best annual growth observed over the last five years, for consistency with the past","es":""},"correct":false,"feedback":{"fr":"","en":"Using the best past year is neither reasonable nor consistent with a contracting market.","es":""}},{"id":"D","text":{"fr":"","en":"Extrapolate at a declining, or even negative, rate consistent with the external data","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000138","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PROJECTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000138","tested_point":"QST.IAS36.000138","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000006","section_id":"projections-rule"},"references":["IAS 36","IAS 36 §33"],"exercise":{"prompt":{"fr":"","en":"The approved budget of Cimarel, a cement producer, forecasts a sharp rise in selling prices from next year. Forecasts published by the industry federation and by two economic institutes indicate, on the contrary, that prices will stagnate for several years. How should Cimarel approach its value in use projections?","es":""},"explanation":{"fr":"","en":"Projections rest on reasonable and supportable assumptions, giving greater weight to external evidence (IAS 36, para. 33). When using its budgets, the entity checks that they represent management's best estimate of the economic conditions that will exist over the remaining useful life (IAS 36, para. 38). A price rise contradicted by every external source does not meet these requirements.","es":""},"common_error":{"fr":"","en":"Treating management's approval of the budget as proof that the assumptions are reasonable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use its budget as it stands, since approval by management is enough to establish that the assumptions are reasonable","es":""},"correct":false,"feedback":{"fr":"","en":"Approval is necessary but not sufficient: the entity must check that the assumptions are reasonable and supportable.","es":""}},{"id":"B","text":{"fr":"","en":"Give greater weight to external evidence and use its best estimate of conditions over the remaining useful life","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Take the arithmetic mean of the budget and the external forecasts, without further analysis, so as to remain neutral","es":""},"correct":false,"feedback":{"fr":"","en":"A mechanical average is not an analysis: the assumptions must be assessed, giving priority to external evidence.","es":""}},{"id":"D","text":{"fr":"","en":"Use the most favourable assumption of the three sources, since value in use reflects the entity's point of view","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use includes entity-specific factors, but not optimistic assumptions contradicted by external evidence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000139","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000139","tested_point":"QST.IAS36.000139","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §43"],"exercise":{"prompt":{"fr":"","en":"Panifor is calculating the value in use of an industrial bread production line. Which of the following cash flows must be included in the projections? (several answers)","es":""},"explanation":{"fr":"","en":"Cash flows comprise inflows from continuing use, the outflows necessarily incurred to generate them, allocated on a reasonable and consistent basis, and the net disposal cash flow at the end of the useful life (IAS 36, para. 39). Outflows include day-to-day servicing and attributable or reasonably allocated overheads (IAS 36, para. 41). To avoid double counting, inflows from existing receivables and outflows relating to liabilities already recognised are excluded (IAS 36, para. 43).","es":""},"common_error":{"fr":"","en":"Copying next year's cash flow statement, including opening receivables and payables.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Collection of the trade receivables in the statement of financial position at the test date","es":""},"correct":false,"feedback":{"fr":"","en":"Existing receivables are separate assets: including their collection would double count.","es":""}},{"id":"B","text":{"fr":"","en":"Cash receipts from future sales of the line's products","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Future overheads that can be directly attributed or reasonably allocated to the line","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Payment of supplier invoices already recognised as payables at the test date","es":""},"correct":false,"feedback":{"fr":"","en":"Outflows relating to obligations already recognised as liabilities are excluded.","es":""}},{"id":"E","text":{"fr":"","en":"Day-to-day servicing expenditure on the line","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The net cash flow expected from disposing of the line at the end of its useful life","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000140","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000140","tested_point":"QST.IAS36.000140","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §43","IAS 36 §49"],"exercise":{"prompt":{"fr":"","en":"For a refrigerated transport cash-generating unit (CGU), Glacéo must avoid any double counting in its value in use projections. Which of the following cash flows must it exclude? (several answers)","es":""},"explanation":{"fr":"","en":"To avoid double counting, projections exclude inflows from assets that generate largely independent cash inflows, such as receivables, and outflows relating to obligations already recognised as liabilities (IAS 36, para. 43). By contrast, outflows needed to maintain the expected level of benefits, including the replacement of shorter-lived assets within a CGU, are included as day-to-day servicing (IAS 36, para. 49).","es":""},"common_error":{"fr":"","en":"Excluding the replacement of short-lived components by treating it as an enhancement investment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Collection of the trade receivables existing at the test date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Day-to-day servicing of the CGU's trucks","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing is a necessary outflow, included in the projections.","es":""}},{"id":"C","text":{"fr":"","en":"Payment of the trade payables already recognised at the test date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Periodic replacement of the refrigeration units, whose useful life is shorter than that of the trucks","es":""},"correct":false,"feedback":{"fr":"","en":"In a CGU made up of assets with different lives, replacing the shorter-lived assets is day-to-day servicing: it is included.","es":""}},{"id":"E","text":{"fr":"","en":"Settlement of a lawsuit for which a provision is already recognised","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000141","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000141","tested_point":"QST.IAS36.000141","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §41","IAS 36 §39"],"exercise":{"prompt":{"fr":"","en":"The Ostréa group is testing a cannery. Its central IT department, accounting services and pooled purchasing work for all the group's plants. Management control has a stable allocation key, based on volumes produced, which each year allocates a share of these costs to the cannery. How should these overheads be treated in the cannery's value in use?","es":""},"explanation":{"fr":"","en":"Projected outflows include future overheads that can be directly attributed, or allocated on a reasonable basis, to the asset (IAS 36, para. 41). More broadly, the outflows necessarily incurred to generate the inflows are allocated to the asset on a reasonable and consistent basis (IAS 36, para. 39). The share derived from a stable volume-based key meets this requirement.","es":""},"common_error":{"fr":"","en":"Omitting head-office costs, which overstates the plant's value in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ignore them: only costs physically incurred in the plant are outflows of the asset tested","es":""},"correct":false,"feedback":{"fr":"","en":"Future overheads that are attributable or can reasonably be allocated are part of projected outflows.","es":""}},{"id":"B","text":{"fr":"","en":"Include all of the group's overheads, out of prudence, in the cannery's outflows","es":""},"correct":false,"feedback":{"fr":"","en":"Only the share that is attributable or allocated on a reasonable and consistent basis is included, not the whole amount.","es":""}},{"id":"C","text":{"fr":"","en":"Include them only if they are invoiced to the cannery by a supplier outside the group","es":""},"correct":false,"feedback":{"fr":"","en":"The test is not whether the invoice is external but whether the cost is attributable or reasonably allocated to the asset.","es":""}},{"id":"D","text":{"fr":"","en":"Include the share allocated on a reasonable and consistent basis","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000142","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000142","tested_point":"QST.IAS36.000142","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §49","IAS 36 §39"],"exercise":{"prompt":{"fr":"","en":"The Thermalis spa forms a cash-generating unit (CGU) comprising a building with a long useful life and circulation pumps that must be replaced every four years to maintain the current level of service. For year 3 of its projections, operating outflows excluding the pumps amount to 300,000 and the replacement of the pumps, planned for that year, will cost 60,000. The finance director proposes to exclude this replacement, which he describes as an investment. What amount of outflows should be used for year 3?","es":""},"explanation":{"fr":"","en":"Outflows needed to maintain the level of benefits expected from the asset in its current condition are taken into account; when a CGU consists of assets with different useful lives, replacing the shorter-lived assets is part of day-to-day servicing (IAS 36, para. 49). These outflows are among those necessarily incurred to generate the inflows (IAS 36, para. 39). Year 3: 300,000 + 60,000 = 360,000.","es":""},"common_error":{"fr":"","en":"Excluding the replacement of the pumps by confusing it with an enhancement investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"300,000, since the replacement is an investment excluded from the projections","es":""},"correct":false,"feedback":{"fr":"","en":"Replacing the shorter-lived assets of a CGU is day-to-day servicing and is included.","es":""}},{"id":"B","text":{"fr":"","en":"315,000, spreading the replacement over four years","es":""},"correct":false,"feedback":{"fr":"","en":"Outflows are projected when they are expected, without spreading.","es":""}},{"id":"C","text":{"fr":"","en":"360,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"420,000, counting the replacement both as an investment and as servicing","es":""},"correct":false,"feedback":{"fr":"","en":"The replacement must be counted only once.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000143","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000143","tested_point":"QST.IAS36.000143","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §43","IAS 36 §39"],"exercise":{"prompt":{"fr":"","en":"For the first projection year of the value in use of a sawmill, Brisac's analyst included: (A) cash receipts from future sales of sawn timber; (B) collection of 120,000 of trade receivables in the statement of financial position at the test date; (C) day-to-day servicing expenditure on the saws; (D) a share of head-office costs allocated using a reasonable key. Which item is wrong?","es":""},"explanation":{"fr":"","en":"Value in use cash flows comprise inflows from continuing use and necessary outflows, allocated on a reasonable and consistent basis (IAS 36, para. 39). Inflows from assets that generate largely independent cash inflows, such as existing receivables, are excluded to avoid double counting (IAS 36, para. 43). The 120,000 of receivables must therefore be removed.","es":""},"common_error":{"fr":"","en":"Treating value in use projections as a complete cash budget.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Item (A)","es":""},"correct":false,"feedback":{"fr":"","en":"Inflows from continuing use of the asset are indeed included.","es":""}},{"id":"B","text":{"fr":"","en":"Item (B)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Item (C)","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing is among the necessary outflows.","es":""}},{"id":"D","text":{"fr":"","en":"Item (D)","es":""},"correct":false,"feedback":{"fr":"","en":"A share of overheads reasonably allocated is included.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000144","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000144","tested_point":"QST.IAS36.000144","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §52","IAS 36 §53"],"exercise":{"prompt":{"fr":"","en":"Tolvane is estimating the net disposal cash flow of a folding machine that will be sold at the end of its useful life, in eight years. Its analyst: (A) starts from the amount that knowledgeable, willing parties would obtain in a disposal; (B) adjusts this price for the expected effects of general and specific future price changes up to the disposal date; (C) uses as a basis the current price of an identical new folding machine; (D) deducts the estimated costs of disposal. Which step is wrong?","es":""},"explanation":{"fr":"","en":"The net disposal cash flow at the end of the useful life is the amount expected from a disposal between knowledgeable, willing parties, less costs of disposal (IAS 36, para. 52). It is determined from prices prevailing at the date of the estimate for similar assets that have reached the end of their useful life in comparable conditions, adjusted for the effects of general and specific future price changes (IAS 36, para. 53). The price of a new folding machine is not the right basis.","es":""},"common_error":{"fr":"","en":"Measuring the final cash flow from the price of a new asset, which greatly overstates it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step (A) of the disposal flow estimate","es":""},"correct":false,"feedback":{"fr":"","en":"The final cash flow does correspond to the amount of a disposal between knowledgeable, willing parties.","es":""}},{"id":"B","text":{"fr":"","en":"Step (B) of the disposal flow estimate","es":""},"correct":false,"feedback":{"fr":"","en":"Adjusting for the effects of general and specific future price changes is required.","es":""}},{"id":"C","text":{"fr":"","en":"Step (C) of the disposal flow estimate","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step (D) of the disposal flow estimate","es":""},"correct":false,"feedback":{"fr":"","en":"The final cash flow is indeed reduced by costs of disposal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000145","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000305","tested_point":"VG.IAS36.000305","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §43"],"exercise":{"prompt":{"fr":"","en":"Panelis is preparing year 1 of the value in use projections for an insulating panel production line. It expects {sales_receipts} of receipts from the line's future sales, {operating_payments} of payments for materials and staff, {allocated_overheads} of overheads allocated to the line using a reasonable key and {maintenance} of day-to-day servicing. Its cash forecast also contains the collection of {opening_receivables} of trade receivables and the payment of {recognised_payables} of trade payables, both recognised in the statement of financial position at the test date. What net cash flow should be used for year 1?","es":""},"explanation":{"fr":"","en":"Inflows from continuing use and necessary outflows are included (IAS 36, para. 39), including day-to-day servicing and allocated overheads (IAS 36, para. 41). Collection of existing receivables and payment of payables already recognised are excluded to avoid double counting (IAS 36, para. 43). Net cash flow: 900,000 − 520,000 − 60,000 − 40,000 = 280,000.","es":""},"common_error":{"fr":"","en":"Using the complete cash forecast (310,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"sales_receipts","value":"900000","unit":"EUR"},{"id":"operating_payments","value":"520000","unit":"EUR"},{"id":"allocated_overheads","value":"60000","unit":"EUR"},{"id":"maintenance","value":"40000","unit":"EUR"},{"id":"opening_receivables","value":"75000","unit":"EUR"},{"id":"recognised_payables","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Receipts from future sales","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Payments for materials and staff","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Allocated overheads","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Day-to-day servicing","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Existing trade receivables","es":""},"value":"75000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables already recognised","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"NET_CASH_FLOW","label":{"fr":"","en":"Net cash flow, year 1","es":""},"answer":280000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_CASH_FLOW","meaning":{"fr":"","en":"Net cash flow, year 1","es":""},"expression":"a - b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receipts from future sales","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payments for materials and staff","es":""},"value":520000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Allocated overheads","es":""},"value":60000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Day-to-day servicing","es":""},"value":40000,"unit":"EUR"}],"result":280000,"unit":"EUR"}],"rationale":{"fr":"","en":"Inflows from continuing use and necessary outflows are included (IAS 36, para. 39), including day-to-day servicing and allocated overheads (IAS 36, para. 41).","es":""},"references":["REF.IAS36.39","REF.IAS36.41","REF.IAS36.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000146","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000305","tested_point":"VG.IAS36.000305","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §43"],"exercise":{"prompt":{"fr":"","en":"The Belcastel hotel group is assessing the value in use of a mountain hotel. For the next year, it expects {guest_receipts} of accommodation and catering receipts, {staff_and_supplies} of wages and supplies, {booking_costs_share} for the share of the central booking office charged to the hotel on a reasonable and consistent basis, and {routine_repairs} of small routine repairs. The controller also added {guest_receivables} of customer invoices already issued but not yet collected at the test date, and deducted {litigation_provision} for the settlement of a lawsuit already provided for in the statement of financial position. What net cash flow should be used for the year?","es":""},"explanation":{"fr":"","en":"Inflows from operating the hotel and necessary outflows, including routine repairs and the reasonably allocated share of the central booking office, are included (IAS 36, para. 39; IAS 36, para. 41). Invoices already issued are existing receivables and the lawsuit is a liability already recognised: they are excluded (IAS 36, para. 43). Net cash flow: 1,450,000 − 830,000 − 95,000 − 70,000 = 455,000.","es":""},"common_error":{"fr":"","en":"Keeping the controller's additions (515,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"guest_receipts","value":"1450000","unit":"EUR"},{"id":"staff_and_supplies","value":"830000","unit":"EUR"},{"id":"booking_costs_share","value":"95000","unit":"EUR"},{"id":"routine_repairs","value":"70000","unit":"EUR"},{"id":"guest_receivables","value":"110000","unit":"EUR"},{"id":"litigation_provision","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accommodation and catering receipts","es":""},"value":"1450000","unit":"EUR"},{"label":{"fr":"","en":"Wages and supplies","es":""},"value":"830000","unit":"EUR"},{"label":{"fr":"","en":"Share of the central booking office","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Small routine repairs","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Customer invoices issued but not collected","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Lawsuit already provided for","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"NET_CASH_FLOW","label":{"fr":"","en":"Net cash flow for the year","es":""},"answer":455000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_CASH_FLOW","meaning":{"fr":"","en":"Net cash flow for the year","es":""},"expression":"a - b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accommodation and catering receipts","es":""},"value":1450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Wages and supplies","es":""},"value":830000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share of the central booking office","es":""},"value":95000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Small routine repairs","es":""},"value":70000,"unit":"EUR"}],"result":455000,"unit":"EUR"}],"rationale":{"fr":"","en":"Inflows from operating the hotel and necessary outflows, including routine repairs and the reasonably allocated share of the central booking office, are included (IAS 36, para. 39; IAS 36, para. 41).","es":""},"references":["REF.IAS36.39","REF.IAS36.41","REF.IAS36.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000147","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000306","tested_point":"VG.IAS36.000306","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §52","IAS 36 §53"],"exercise":{"prompt":{"fr":"","en":"Carvelle must estimate the net disposal cash flow of a milling machine that it will sell at the end of its useful life. Today, similar milling machines that have reached the end of their life under comparable conditions of use trade at {end_of_life_price} between knowledgeable, willing parties. The general and specific price change expected until the disposal date is estimated at {price_change} in total (given). Costs of disposal at that date are estimated at {disposal_costs}. An identical new milling machine currently costs {new_machine_price}. What net disposal cash flow should Carvelle use?","es":""},"explanation":{"fr":"","en":"The net disposal cash flow is the amount expected from a disposal between knowledgeable, willing parties, less costs of disposal (IAS 36, para. 52). It starts from the current prices of similar assets that have reached the end of their life in comparable conditions, adjusted for general and specific future price changes (IAS 36, para. 53); the price of a new machine is not relevant. Calculation: 50,000 × 1.08 = 54,000; 54,000 − 2,500 = 51,500.","es":""},"common_error":{"fr":"","en":"Starting from the price of a new milling machine.","es":""},"format":"CALCULATION","placeholders":[{"id":"end_of_life_price","value":"50000","unit":"EUR"},{"id":"price_change","value":"8","unit":"PERCENT"},{"id":"disposal_costs","value":"2500","unit":"EUR"},{"id":"new_machine_price","value":"180000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current price of a similar machine at the end of its life","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Expected cumulative price change (given)","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Estimated costs of disposal","es":""},"value":"2500","unit":"EUR"},{"label":{"fr":"","en":"Current price of a new machine","es":""},"value":"180000","unit":"EUR"}],"steps":[{"id":"NET_DISPOSAL_FLOW","label":{"fr":"","en":"Net disposal cash flow at the end of the useful life","es":""},"answer":51500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_DISPOSAL_FLOW","meaning":{"fr":"","en":"Net disposal cash flow at the end of the useful life","es":""},"expression":"(a * (1 + b)) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current price of a similar machine at the end of its life","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected cumulative price change (given)","es":""},"value":8,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Estimated costs of disposal","es":""},"value":2500,"unit":"EUR"}],"result":51500,"unit":"EUR"}],"rationale":{"fr":"","en":"The net disposal cash flow is the amount expected from a disposal between knowledgeable, willing parties, less costs of disposal (IAS 36, para. 52).","es":""},"references":["REF.IAS36.52","REF.IAS36.53"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000148","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000306","tested_point":"VG.IAS36.000306","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §52","IAS 36 §53"],"exercise":{"prompt":{"fr":"","en":"The haulier Transalpe is testing a fleet of trucks that it will resell as a whole at the end of its useful life. The used market today values at {used_fleet_price} a similar fleet that has reached the same end of life after comparable use. Transalpe estimates at {price_change} the cumulative effect of general and specific price changes until the resale (given). At that date, the sale will involve {dealer_commission} of dealer commission and {legal_costs} of legal costs. An equivalent new fleet is worth {new_fleet_price}. What net disposal cash flow should be used in value in use?","es":""},"explanation":{"fr":"","en":"The final cash flow is based on current prices of similar assets at the end of their life, adjusted for general and specific future price changes (IAS 36, para. 53), and is then reduced by costs of disposal (IAS 36, para. 52). Calculation: 240,000 × 1.05 = 252,000; 252,000 − 6,000 − 1,000 = 245,000. The price of a new fleet plays no part.","es":""},"common_error":{"fr":"","en":"Not deducting the costs of disposal (252,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"used_fleet_price","value":"240000","unit":"EUR"},{"id":"price_change","value":"5","unit":"PERCENT"},{"id":"dealer_commission","value":"6000","unit":"EUR"},{"id":"legal_costs","value":"1000","unit":"EUR"},{"id":"new_fleet_price","value":"950000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current price of a similar fleet at the end of its life","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative effect of price changes (given)","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Dealer commission","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Legal costs","es":""},"value":"1000","unit":"EUR"},{"label":{"fr":"","en":"Price of an equivalent new fleet","es":""},"value":"950000","unit":"EUR"}],"steps":[{"id":"NET_DISPOSAL_FLOW","label":{"fr":"","en":"Net disposal cash flow at the end of the useful life","es":""},"answer":245000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_DISPOSAL_FLOW","meaning":{"fr":"","en":"Net disposal cash flow at the end of the useful life","es":""},"expression":"(a * (1 + b)) - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current price of a similar fleet at the end of its life","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative effect of price changes (given)","es":""},"value":5,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Dealer commission","es":""},"value":6000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Legal costs","es":""},"value":1000,"unit":"EUR"}],"result":245000,"unit":"EUR"}],"rationale":{"fr":"","en":"The final cash flow is based on current prices of similar assets at the end of their life, adjusted for general and specific future price changes (IAS 36, para. 53), and is then reduced by costs of disposal (IAS 36, para. 52).","es":""},"references":["REF.IAS36.52","REF.IAS36.53"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000149","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000307","tested_point":"VG.IAS36.000307","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §52","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"Melvane is preparing the last projection year of an injection moulding press, which will be sold at the end of that year. It expects {operating_receipts} of operating receipts, {operating_payments} of operating payments and {allocated_overheads} of reasonably allocated overheads. The disposal should bring in {disposal_proceeds} between knowledgeable, willing parties, with {disposal_costs} of costs of disposal. Its model also includes {income_tax} of income tax and {interest} of loan interest. What total cash flow should be used for this last year?","es":""},"explanation":{"fr":"","en":"Cash flows comprise inflows and outflows from use, allocated on a reasonable and consistent basis, and the net disposal cash flow at the end of the useful life (IAS 36, para. 39). This final flow is the amount expected from a disposal between knowledgeable, willing parties, less costs of disposal (IAS 36, para. 52). Financing and income tax cash flows are excluded (IAS 36, para. 50). Calculation: 400,000 − 250,000 − 30,000 + (45,000 − 5,000) = 160,000.","es":""},"common_error":{"fr":"","en":"Deducting the tax and interest (128,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"operating_receipts","value":"400000","unit":"EUR"},{"id":"operating_payments","value":"250000","unit":"EUR"},{"id":"allocated_overheads","value":"30000","unit":"EUR"},{"id":"disposal_proceeds","value":"45000","unit":"EUR"},{"id":"disposal_costs","value":"5000","unit":"EUR"},{"id":"income_tax","value":"20000","unit":"EUR"},{"id":"interest","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Operating receipts","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Operating payments","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Allocated overheads","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Expected disposal proceeds","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Income tax","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Loan interest","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"FINAL_YEAR_CASH_FLOW","label":{"fr":"","en":"Total cash flow of the last year","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FINAL_YEAR_CASH_FLOW","meaning":{"fr":"","en":"Total cash flow of the last year","es":""},"expression":"a - b - c + (d - e)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Operating receipts","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Operating payments","es":""},"value":250000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Allocated overheads","es":""},"value":30000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Expected disposal proceeds","es":""},"value":45000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":5000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cash flows comprise inflows and outflows from use, allocated on a reasonable and consistent basis, and the net disposal cash flow at the end of the useful life (IAS 36, para. 39).","es":""},"references":["REF.IAS36.39","REF.IAS36.52","REF.IAS36.50"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000150","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION","IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000307","tested_point":"VG.IAS36.000307","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §39","IAS 36 §41","IAS 36 §43","IAS 36 §52","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"The Port-Aurel salt works are in the last operating year of their harvesting equipment. This year's value in use model includes: salt sales collected {salt_sales}, production payments {production_payments}, a reasonably allocated share of central costs {overhead_share}, day-to-day servicing {routine_maintenance}, sale of the equipment at year-end to knowledgeable, willing parties {equipment_sale}, with {sale_costs} of costs of disposal. The treasurer has also entered the repayment of a loan of {loan_repayment} and the payment of {environmental_provision} under an environmental provision already recognised. Determine the total cash flow for this last year.","es":""},"explanation":{"fr":"","en":"Cash flows from use are included (IAS 36, para. 39), including day-to-day servicing and the allocated share of costs (IAS 36, para. 41), together with the final net disposal flow, i.e. disposal proceeds less costs of disposal (IAS 36, para. 52). The loan repayment is a financing cash flow and is excluded (IAS 36, para. 50), and the provision already recognised is an existing liability and is excluded (IAS 36, para. 43). Calculation: 680,000 − 410,000 − 55,000 − 25,000 + (90,000 − 8,000) = 272,000.","es":""},"common_error":{"fr":"","en":"Keeping the lines added by the treasurer (167,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"salt_sales","value":"680000","unit":"EUR"},{"id":"production_payments","value":"410000","unit":"EUR"},{"id":"overhead_share","value":"55000","unit":"EUR"},{"id":"routine_maintenance","value":"25000","unit":"EUR"},{"id":"equipment_sale","value":"90000","unit":"EUR"},{"id":"sale_costs","value":"8000","unit":"EUR"},{"id":"loan_repayment","value":"70000","unit":"EUR"},{"id":"environmental_provision","value":"35000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Salt sales collected","es":""},"value":"680000","unit":"EUR"},{"label":{"fr":"","en":"Production payments","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Share of central costs","es":""},"value":"55000","unit":"EUR"},{"label":{"fr":"","en":"Day-to-day servicing","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Sale of the equipment at the end of its life","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Loan repayment","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Environmental provision already recognised","es":""},"value":"35000","unit":"EUR"}],"steps":[{"id":"FINAL_YEAR_CASH_FLOW","label":{"fr":"","en":"Total cash flow of the last year","es":""},"answer":272000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FINAL_YEAR_CASH_FLOW","meaning":{"fr":"","en":"Total cash flow of the last year","es":""},"expression":"a - b - c - d + (e - f)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Salt sales collected","es":""},"value":680000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Production payments","es":""},"value":410000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share of central costs","es":""},"value":55000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Day-to-day servicing","es":""},"value":25000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Sale of the equipment at the end of its life","es":""},"value":90000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Costs of disposal","es":""},"value":8000,"unit":"EUR"}],"result":272000,"unit":"EUR"}],"rationale":{"fr":"","en":"Cash flows from use are included (IAS 36, para. 39), including day-to-day servicing and the allocated share of costs (IAS 36, para. 41), together with the final net disposal flow, i.e. disposal proceeds less costs of disposal (IAS 36, para. 52).","es":""},"references":["REF.IAS36.39","REF.IAS36.41","REF.IAS36.43","REF.IAS36.52","REF.IAS36.50"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000151","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000151","tested_point":"QST.IAS36.000151","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §42","IAS 36 §39"],"exercise":{"prompt":{"fr":"","en":"Calanque Résidences is building a hotel whose carrying amount already includes 4,000,000 of work done. Another 1,500,000 of work remains to be paid during year 1 before the hotel is ready for use. A partial opening at the end of year 1 should generate 200,000 of receipts and 120,000 of operating payments. Management is testing the hotel at the year-end. What net cash flow should be used for year 1 in value in use?","es":""},"explanation":{"fr":"","en":"When the carrying amount does not yet include all the outflows to be incurred before the asset is ready for use, as for a building under construction, those remaining outflows are included in the projections (IAS 36, para. 42). The inflows and outflows from use are added (IAS 36, para. 39). Year 1: 200,000 − 120,000 − 1,500,000 = −1,420,000.","es":""},"common_error":{"fr":"","en":"Treating the remaining work as an enhancement investment excluded from the projections.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"80,000, since the remaining work is excluded as capital expenditure","es":""},"correct":false,"feedback":{"fr":"","en":"Outflows still to be incurred before the asset is ready for use are included in the projections.","es":""}},{"id":"B","text":{"fr":"","en":"Minus 1,420,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Minus 1,500,000, since only the work is included in year 1","es":""},"correct":false,"feedback":{"fr":"","en":"The operating cash flows of the partial opening are also part of the year 1 cash flows.","es":""}},{"id":"D","text":{"fr":"","en":"Minus 5,420,000, also including the work already done","es":""},"correct":false,"feedback":{"fr":"","en":"The 4,000,000 already spent is in the carrying amount: including it again would double count.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000152","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000152","tested_point":"QST.IAS36.000152","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §44","IAS 36 §45"],"exercise":{"prompt":{"fr":"","en":"True or false? The board of Orvalis is studying a reorganisation plan for its plant but has not committed to it at the year-end. The staff cost savings expected from this plan must be included in the cash flows used for the plant's value in use.","es":""},"explanation":{"fr":"","en":"False. Value in use is measured for the asset in its current condition: cash flows from a future restructuring to which the entity is not yet committed are excluded (IAS 36, para. 44). This applies both to the costs of the restructuring and to the savings it would bring, such as lower staff costs (IAS 36, para. 45).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000153","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000153","tested_point":"QST.IAS36.000153","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §47","IAS 36 §46"],"exercise":{"prompt":{"fr":"","en":"True or false? When an entity is committed to a restructuring within the meaning of IAS 37, the cash flows used for value in use include the savings expected from that restructuring, based on the most recent budgets approved by management.","es":""},"explanation":{"fr":"","en":"True. A restructuring is a programme planned and controlled by management, and IAS 37 determines when the entity is committed to it (IAS 36, para. 46). From that commitment onwards, the projections include the expected savings and other benefits, based on the most recent budgets approved by management, while the outflows of the restructuring are dealt with through the IAS 37 provision (IAS 36, para. 47).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000154","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000154","tested_point":"QST.IAS36.000154","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §44","IAS 36 §49"],"exercise":{"prompt":{"fr":"","en":"True or false? Since value in use relates to the asset in its current condition, the future maintenance expenditure needed to keep the level of benefits that an industrial furnace provides today must be excluded from the projected cash outflows.","es":""},"explanation":{"fr":"","en":"False. Current condition excludes investments that would improve or enhance the asset's performance (IAS 36, para. 44), but not maintenance: the outflows needed to maintain the level of economic benefits expected from the asset in its current condition are taken into account (IAS 36, para. 49). Excluding them would overstate value in use.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000155","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000155","tested_point":"QST.IAS36.000155","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §44","IAS 36 §45","IAS 36 §41"],"exercise":{"prompt":{"fr":"","en":"Brenvale is estimating the value in use of a bottling line in its current condition. Which of the following cash flows must be included in the projections?","es":""},"explanation":{"fr":"","en":"Cash flows are estimated for the asset in its current condition, without the cash flows of an uncommitted restructuring or of enhancement investments (IAS 36, para. 44). Value in use therefore reflects neither the costs nor the savings of an uncommitted restructuring, nor the additional inflows of an enhancement (IAS 36, para. 45). Day-to-day servicing, by contrast, is part of the projected outflows (IAS 36, para. 41).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The labour savings from an automation project that management is considering for next year, with no commitment to date.","es":""},"correct":false,"feedback":{"fr":"","en":"An uncommitted restructuring is ignored, including its savings.","es":""}},{"id":"B","text":{"fr":"","en":"The additional sales made possible by the planned addition of a second filling station, not yet carried out.","es":""},"correct":false,"feedback":{"fr":"","en":"These inflows come from a performance enhancement not yet carried out: they are excluded.","es":""}},{"id":"C","text":{"fr":"","en":"The day-to-day servicing costs of the line.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The termination benefits of a reorganisation still under study.","es":""},"correct":false,"feedback":{"fr":"","en":"The costs of an uncommitted restructuring are excluded, as are its savings.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000156","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000156","tested_point":"QST.IAS36.000156","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §47","IAS 36 §46"],"exercise":{"prompt":{"fr":"","en":"Before the year-end, Calmeyre committed, within the meaning of IAS 37, to closing a workshop of its textile division and recognised a restructuring provision. How are the cash flows of this restructuring treated in the division's value in use?","es":""},"explanation":{"fr":"","en":"IAS 37 determines when the entity is committed to a restructuring (IAS 36, para. 46). Once committed, the entity includes in its projections the expected savings and other benefits, based on the most recent budgets approved by management; the cash outflows of the restructuring are dealt with through the IAS 37 provision and are not repeated in the projections (IAS 36, para. 47).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Neither the savings nor the closure costs are included, because value in use always relates to the condition of the asset before any restructuring, whether committed or not.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion only applies to uncommitted restructurings; here the entity is committed.","es":""}},{"id":"B","text":{"fr":"","en":"The expected savings are included; the closure costs are dealt with through the IAS 37 provision.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both the savings and the closure costs are included in the projections.","es":""},"correct":false,"feedback":{"fr":"","en":"The closure costs are already dealt with by the provision: repeating them in the cash flows would duplicate them.","es":""}},{"id":"D","text":{"fr":"","en":"Only the closure costs are included, as the savings remain too uncertain.","es":""},"correct":false,"feedback":{"fr":"","en":"Once the entity is committed, the savings budgeted by management are included.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000157","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000157","tested_point":"QST.IAS36.000157","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §48","IAS 36 §44"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Ternavia plans to invest 2,000,000 in 20X3 to increase the capacity of a logistics platform; the budget approved by management accordingly forecasts additional revenue from 20X4. No expenditure has yet been incurred. How should these items be treated in value in use at 31 December 20X1?","es":""},"explanation":{"fr":"","en":"Cash flows are estimated for the asset in its current condition, without investments that would enhance its performance (IAS 36, para. 44). Until the enhancement expenditure has been incurred, the additional inflows it would generate are excluded (IAS 36, para. 48). The investment of 2,000,000 and the additional revenue are therefore both left out, even though they appear in the budget.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Include the additional revenue and the investment, since the budget is approved by management.","es":""},"correct":false,"feedback":{"fr":"","en":"Budget approval is not enough: the enhancement has not been incurred, so its cash flows are excluded.","es":""}},{"id":"B","text":{"fr":"","en":"Include the additional revenue, but not the investment, which has not yet been incurred.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the reverse of a consistent approach: inflows linked to the enhancement are excluded until the expenditure is incurred.","es":""}},{"id":"C","text":{"fr":"","en":"Include the investment out of prudence, but not the additional revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"Including the outflow without the inflow is not a matter of prudence: both cash flows of the enhancement are excluded.","es":""}},{"id":"D","text":{"fr":"","en":"Include neither.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000158","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000158","tested_point":"QST.IAS36.000158","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §44","IAS 36 §45","IAS 36 §48","IAS 36 §41"],"exercise":{"prompt":{"fr":"","en":"Halvero is preparing the value in use of its foundry unit at 31 December 20X1. It is not committed to any restructuring and has incurred no enhancement expenditure. Which of the following cash flows must be excluded from the projections?","es":""},"explanation":{"fr":"","en":"Cash flows are estimated for the asset in its current condition (IAS 36, para. 44): the outflows and savings of an uncommitted restructuring are excluded, as are performance-enhancing expenditure and the inflows it would generate (IAS 36, para. 45). Until the enhancement expenditure is incurred, its inflows are excluded (IAS 36, para. 48). Day-to-day servicing and the overheads directly attributable or reasonably allocated to the unit remain in the projected outflows (IAS 36, para. 41).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The costs of a voluntary redundancy plan that management is considering.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The salary savings expected from that same plan.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The day-to-day servicing costs of the furnaces.","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing is an outflow to be included: it must not be excluded.","es":""}},{"id":"D","text":{"fr":"","en":"The cost of a new, more efficient furnace being considered for 20X3.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The additional sales that this new furnace would make possible.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The site overheads reasonably allocated to the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"Overheads that can be reasonably allocated to the unit are part of the projected outflows.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000159","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000159","tested_point":"QST.IAS36.000159","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §44","IAS 36 §48","IAS 36 §49"],"exercise":{"prompt":{"fr":"","en":"The controller of Pélagor is justifying the value in use projections of a cash-generating unit made up of a vessel and deck equipment with a shorter useful life. Which of the controller's statements are correct?","es":""},"explanation":{"fr":"","en":"Value in use reflects the asset in its current condition, whatever management's enhancement intentions (IAS 36, para. 44). The outflows needed to maintain the expected level of benefits are included and, in a unit grouping assets with different useful lives, replacing the shorter-lived assets is part of day-to-day servicing (IAS 36, para. 49). Inflows from an enhancement remain excluded until the expenditure is incurred, and an announcement is not enough (IAS 36, para. 48).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The periodic replacement of the deck equipment, which has a shorter useful life than the vessel, is treated as day-to-day servicing in the projections.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An engine upgrade that would enhance performance can be included once its budget has been approved by management.","es":""},"correct":false,"feedback":{"fr":"","en":"Approving a budget does not turn an enhancement that has not been incurred into a current-condition cash flow.","es":""}},{"id":"C","text":{"fr":"","en":"The projections relate to the unit in its current condition, even if management intends to enhance it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The additional inflows from the engine upgrade are included as soon as the decision has been publicly announced.","es":""},"correct":false,"feedback":{"fr":"","en":"An announcement is not enough: the inflows remain excluded until the expenditure is incurred.","es":""}},{"id":"E","text":{"fr":"","en":"The outflows needed to maintain the current level of benefits of the vessel are included.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000160","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000160","tested_point":"QST.IAS36.000160","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"current-condition"},"references":["IAS 36 §47","IAS 36 §44","IAS 36 §46"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Vestrame is testing the value in use of its packaging division. In November 20X1, it finalised and announced to its employees a plan to merge two sites; its legal department concludes that it is committed to the plan within the meaning of IAS 37, and a provision of 900,000 has been recognised. The most recent budget approved by management forecasts annual savings of 300,000 in rent and staff costs from 20X2. The controller proposes two other plans that are only under study: outsourcing maintenance (estimated savings of 120,000 a year) and an additional printing line. Which construction of the cash flows is correct?","es":""},"explanation":{"fr":"","en":"The merger plan is committed within the meaning of IAS 37 (IAS 36, para. 46): its budgeted savings of 300,000 a year are included, while its costs are dealt with through the provision of 900,000 and are not repeated in the cash flows (IAS 36, para. 47). The outsourcing and the additional line are not committed: their cash flows are excluded, as the asset is measured in its current condition (IAS 36, para. 44).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Include the savings of 300,000 and also deduct the 900,000 of merger costs from the cash flows, for a complete view of the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"The 900,000 is covered by the IAS 37 provision: deducting it from the cash flows would count these costs twice.","es":""}},{"id":"B","text":{"fr":"","en":"Include the savings of 300,000 and those of 120,000, since both plans appear in the controller's forecasts.","es":""},"correct":false,"feedback":{"fr":"","en":"The outsourcing is not committed: its savings are excluded.","es":""}},{"id":"C","text":{"fr":"","en":"Include only the savings of 300,000, without the 900,000 of costs or the cash flows of the two projects under study.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Include no savings at all, as every restructuring is excluded from value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"Only uncommitted restructurings are excluded; the merger is committed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000161","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.CURRENT_CONDITION","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000161","tested_point":"QST.IAS36.000161","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §44","IAS 36 §48","IAS 36 §49"],"exercise":{"prompt":{"fr":"","en":"Aubelune operates a four-star hotel, tested as a cash-generating unit at 31 December 20X1. Every year, it refreshes rooms (paint, bedding) to keep its current standard. Management has also approved a project to upgrade to five stars, with works planned in 20X3 and higher room rates afterwards; no works had been incurred at the year-end. Which projections comply with IAS 36?","es":""},"explanation":{"fr":"","en":"Value in use relates to the hotel in its current condition: investments that would enhance its performance are excluded (IAS 36, para. 44) and the additional inflows from the upgrade are not included until the expenditure is incurred (IAS 36, para. 48). By contrast, the annual room refresh maintains the current level of benefits: it is part of the projected outflows (IAS 36, para. 49).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Include the upgrade works and the higher rates, since the project is approved, and exclude the annual refresh, which will become unnecessary after the works.","es":""},"correct":false,"feedback":{"fr":"","en":"The project has not been incurred: its cash flows are excluded, and maintenance preserving the current condition remains included.","es":""}},{"id":"B","text":{"fr":"","en":"Include the annual room refresh and exclude both the upgrade works and the higher rates.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Exclude both the annual refresh and the upgrade, as all future capital expenditure is excluded from value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"Maintenance needed to keep the current level of benefits is included; only the enhancement is excluded.","es":""}},{"id":"D","text":{"fr":"","en":"Include the annual refresh and the upgrade works, but not the higher rates.","es":""},"correct":false,"feedback":{"fr":"","en":"The outflows of the enhancement are excluded just like its inflows: one is not included without the other.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000164","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000164","tested_point":"QST.IAS36.000164","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §50","IAS 36 §51"],"exercise":{"prompt":{"fr":"","en":"True or false? Dorlane financed a press with a bank loan: the annual interest on this loan must be deducted from the cash flows used for the press's value in use.","es":""},"explanation":{"fr":"","en":"False. Cash flows from financing activities are excluded from the estimate (IAS 36, para. 50). The time value of money is already taken into account through discounting: also deducting interest would count it twice (IAS 36, para. 51).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000165","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000165","tested_point":"QST.IAS36.000165","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"True or false? Income tax payments and refunds are excluded from the cash flows used to estimate value in use.","es":""},"explanation":{"fr":"","en":"True. The estimate of future cash flows excludes income tax receipts and payments, as well as those from financing activities (IAS 36, para. 50).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000166","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000166","tested_point":"QST.IAS36.000166","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §40"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity may discount cash flows expressed in real terms, that is excluding general inflation, at a nominal rate that includes inflation, provided it applies the same method every year.","es":""},"explanation":{"fr":"","en":"False. Cash flows and the rate must be consistent as regards inflation: nominal cash flows with a nominal rate, real cash flows with a real rate (IAS 36, para. 40). Consistency of method over time does not cure an inconsistency that distorts the present value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000167","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000167","tested_point":"QST.IAS36.000167","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §51","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"Why are cash flows from financing activities excluded from the cash flows used for value in use?","es":""},"explanation":{"fr":"","en":"Financing cash flows are excluded (IAS 36, para. 50) for consistency between cash flows and rate: since the time value of money is taken into account through discounting, also including financing cash flows would count it twice (IAS 36, para. 51).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because value in use must reflect the view of an acquirer who would finance the asset with an optimal financing structure, different from the entity's.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use is not based on an acquirer's financing structure: the exclusion avoids double counting.","es":""}},{"id":"B","text":{"fr":"","en":"Because the time value is already taken into account through discounting.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because interest is tax deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax deductibility is not the reason for the exclusion; tax cash flows are themselves excluded.","es":""}},{"id":"D","text":{"fr":"","en":"Because the loan is recognised as a liability under IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion does not rest on the classification of the debt, but on consistency with discounting.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000168","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000168","tested_point":"QST.IAS36.000168","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §40"],"exercise":{"prompt":{"fr":"","en":"Fenrival prepares its projections at constant prices, excluding general inflation. It nevertheless expects an increase in the price of energy well above general inflation. Which approach is consistent?","es":""},"explanation":{"fr":"","en":"Real cash flows are discounted at a real rate. They exclude general inflation but take into account specific price increases or decreases (IAS 36, para. 40). The specific increase in the price of energy is therefore built into the cash flows, which are still discounted at a real rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ignore the energy price increase, since the cash flows are at constant prices, and discount at a real rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Real cash flows include specific price changes: the energy-specific increase must be included.","es":""}},{"id":"B","text":{"fr":"","en":"Include the specific energy price increase and discount at a nominal rate, since price increases appear in the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"A specific price change does not make the cash flows nominal: the rate must remain real.","es":""}},{"id":"C","text":{"fr":"","en":"Include the specific energy price increase and discount at a real rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Add general inflation to all cash flows except energy and discount at a real rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Adding general inflation makes the cash flows nominal: discounting them at a real rate is inconsistent.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000169","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY","IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000169","tested_point":"QST.IAS36.000169","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §51","IAS 36 §55"],"exercise":{"prompt":{"fr":"","en":"Since the value in use discount rate is a pre-tax rate, how must the cash flows be estimated?","es":""},"explanation":{"fr":"","en":"The discount rate is a pre-tax rate (IAS 36, para. 55). For consistency, the cash flows are also estimated on a pre-tax basis, so that no assumption is counted twice or omitted (IAS 36, para. 51).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"After tax, because tax is an actual cash outflow of the entity that reduces the cash flows available to shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax is indeed paid, but since the rate is pre-tax, the cash flows must be pre-tax too.","es":""}},{"id":"B","text":{"fr":"","en":"After deferred tax only.","es":""},"correct":false,"feedback":{"fr":"","en":"No intermediate treatment is provided for: cash flows are estimated pre-tax.","es":""}},{"id":"C","text":{"fr":"","en":"At the entity's choice, provided it is disclosed in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency between cash flows and rate is not a presentation option.","es":""}},{"id":"D","text":{"fr":"","en":"Pre-tax.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000170","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000170","tested_point":"QST.IAS36.000170","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §50","IAS 36 §51","IAS 36 §40"],"exercise":{"prompt":{"fr":"","en":"The value in use spreadsheet of a cutting line at Gralmont describes four construction choices. Which one is an error?","es":""},"explanation":{"fr":"","en":"Cash flows from financing activities, such as loan interest, are excluded (IAS 36, para. 50): discounting already takes the time value into account, and deducting them from the cash flows would count it twice (IAS 36, para. 51). The other choices are consistent: a specific price in nominal cash flows discounted at a nominal rate (IAS 36, para. 40) and exclusion of income tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nominal cash flows include the expected increase in the price of steel, specific to this line.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: nominal cash flows include expected price changes.","es":""}},{"id":"B","text":{"fr":"","en":"Income tax payments are excluded from the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: income tax is excluded from the cash flows.","es":""}},{"id":"C","text":{"fr":"","en":"The interest on the loan that financed the line is deducted from each year's cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The nominal cash flows are discounted at a nominal pre-tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: nominal cash flows and a nominal rate, pre-tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000171","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000171","tested_point":"QST.IAS36.000171","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §40"],"exercise":{"prompt":{"fr":"","en":"For a cold storage warehouse, Isembre projects its cash flows by applying annual general inflation of 2% to prices and costs. It discounts them at a real pre-tax rate of 6%, provided by a valuer. Which of the following findings identifies the error?","es":""},"explanation":{"fr":"","en":"Cash flows and the rate must be consistent as regards inflation: nominal cash flows with a nominal rate, real cash flows with a real rate (IAS 36, para. 40). Cash flows that include 2% general inflation are nominal: discounting them at the real rate of 6% overstates value in use. Either general inflation must be removed from the cash flows, or a nominal rate must be used.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The error is applying inflation to costs: only selling prices may be indexed.","es":""},"correct":false,"feedback":{"fr":"","en":"Indexing costs as well as prices is consistent in nominal cash flows; the problem lies elsewhere.","es":""}},{"id":"B","text":{"fr":"","en":"Nominal cash flows, including 2% general inflation, are discounted at a real rate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The error is using a pre-tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate must indeed be pre-tax; that is not the error.","es":""}},{"id":"D","text":{"fr":"","en":"There is no error, since the real rate is provided by an external valuer.","es":""},"correct":false,"feedback":{"fr":"","en":"The source of the rate does not cure the inconsistency with nominal cash flows.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000172","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY","IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000172","tested_point":"QST.IAS36.000172","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §51","IAS 36 §55","IAS 36 §A20"],"exercise":{"prompt":{"fr":"","en":"The value in use calculation memo for a wind farm at Jarnelle sets out the following choices. Which one is wrong?","es":""},"explanation":{"fr":"","en":"The discount rate is a pre-tax rate (IAS 36, para. 55); a post-tax starting rate, such as a post-tax weighted average cost of capital, must be converted into a pre-tax rate (IAS 36, para. A20). Since the cash flows are estimated pre-tax, the rate must be pre-tax too, otherwise consistency between cash flows and rate is broken (IAS 36, para. 51).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cash flows, estimated pre-tax, are discounted at the sector's post-tax weighted average cost of capital, without conversion.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expected income tax refunds are excluded from the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: income tax cash flows are excluded.","es":""}},{"id":"C","text":{"fr":"","en":"The repayments of the wind farm's loan are excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: financing cash flows are excluded.","es":""}},{"id":"D","text":{"fr":"","en":"The cash flows, estimated in nominal terms, include the contractual price increases of the electricity sold.","es":""},"correct":false,"feedback":{"fr":"","en":"This choice is correct: nominal cash flows include expected price increases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000173","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000173","tested_point":"QST.IAS36.000173","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §40","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"While reviewing the value in use of a Kerlande plant, you note the following items. Which of them must be corrected?","es":""},"explanation":{"fr":"","en":"Financing cash flows, including loan repayments, and income tax cash flows, including expected refunds, are excluded (IAS 36, para. 50). Real cash flows are discounted at a real rate and nominal cash flows at a nominal rate; real cash flows include specific price changes (IAS 36, para. 40). Excluding tax and including a specific price change are therefore correct.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plant loan's annual repayments are deducted from the cash flows.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Income tax payments are excluded from the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Correct as it stands: income tax is excluded.","es":""}},{"id":"C","text":{"fr":"","en":"Real cash flows are discounted at a nominal rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The real cash flows include the expected increase in the price of a component, above general inflation.","es":""},"correct":false,"feedback":{"fr":"","en":"Correct as it stands: real cash flows take specific price changes into account.","es":""}},{"id":"E","text":{"fr":"","en":"An income tax refund expected next year is added to the inflows.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000174","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY","IAS36.VALUE_IN_USE.CASH_FLOW_COMPOSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000174","tested_point":"QST.IAS36.000174","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"composition-rule"},"references":["IAS 36 §50","IAS 36 §41"],"exercise":{"prompt":{"fr":"","en":"Which of the following cash flows are excluded from the estimate of the value in use of a Lumbreval workshop?","es":""},"explanation":{"fr":"","en":"Cash flows from financing activities, such as interest paid and loan repayments, are excluded, as are income tax receipts and payments (IAS 36, para. 50). Sales of output and day-to-day servicing costs are operating cash flows that are included (IAS 36, para. 41).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Income tax payments.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Interest paid on the workshop loan.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Receipts from sales of the workshop's output.","es":""},"correct":false,"feedback":{"fr":"","en":"These are the inflows from using the asset: they are included.","es":""}},{"id":"D","text":{"fr":"","en":"Repayments of the loan principal.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Day-to-day servicing costs of the workshop's machines.","es":""},"correct":false,"feedback":{"fr":"","en":"Day-to-day servicing is part of the projected outflows.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000175","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.EXCLUSIONS_CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000175","tested_point":"QST.IAS36.000175","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"exclusions-consistency"},"references":["IAS 36 §51","IAS 36 §50"],"exercise":{"prompt":{"fr":"","en":"An analyst at Morvaine deducts from the cash flows of a port terminal the interest on the debt that financed it, then discounts those cash flows at the value in use discount rate. What is the consequence of this approach?","es":""},"explanation":{"fr":"","en":"Financing cash flows are excluded (IAS 36, para. 50) because the time value of money is already taken into account through discounting (IAS 36, para. 51). By deducting interest and then discounting, the analyst counts the cost of money over time twice: value in use is understated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, as value in use reflects entity-specific cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Financing cash flows are specifically excluded; deducting them distorts the calculation.","es":""}},{"id":"B","text":{"fr":"","en":"Value in use is more reliable, as it reflects the terminal's actual financing structure.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use does not depend on financing; deducting interest creates double counting.","es":""}},{"id":"C","text":{"fr":"","en":"The time value of money is counted twice and value in use is understated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Value in use is overstated, because interest is tax deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"Deducting interest reduces the cash flows rather than increasing them, and tax is excluded.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000176","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000176","tested_point":"QST.IAS36.000176","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"Nalvière, whose functional currency is the euro, is estimating the value in use of a mine operated by its Brazilian branch, whose cash flows are in reais. Which method complies with IAS 36?","es":""},"explanation":{"fr":"","en":"Future cash flows are estimated in the currency in which they will be generated, then discounted at a rate appropriate for that currency; the resulting present value is translated at the spot exchange rate at the date of the value in use calculation (IAS 36, para. 54).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Translate each annual cash flow into euros at the forecast exchange rate for the year concerned, then discount the total at the euro rate.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the typical error: IAS 36 first discounts in the foreign currency, at that currency's rate, then translates at the spot rate.","es":""}},{"id":"B","text":{"fr":"","en":"Discount the cash flows in reais at a rate specific to the real, then translate the present value at the spot rate at the date of the calculation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Discount the cash flows in reais at the euro rate, since value in use is presented in the functional currency.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate must be appropriate for the currency of the cash flows, not for the presentation currency.","es":""}},{"id":"D","text":{"fr":"","en":"Discount the cash flows in reais at a rate specific to the real, then translate the present value at the average rate for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Translation is at the spot rate at the date of the calculation, not at the average rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000177","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000177","tested_point":"QST.IAS36.000177","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"At 30 September 20X1, Ostrevan calculates the value in use of a hotel in Japan, using cash flows in yen discounted at a rate specific to the yen. Its financial year ends on 31 December 20X1. Which rate should be used to translate the resulting present value into euros?","es":""},"explanation":{"fr":"","en":"The present value calculated in the foreign currency is translated at the spot exchange rate at the date of the value in use calculation (IAS 36, para. 54), here 30 September 20X1. Neither an average rate, nor forward rates, nor the rate at another date is appropriate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The spot rate at 31 December 20X1, the financial year-end.","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation is made at 30 September 20X1: the spot rate at that date applies.","es":""}},{"id":"B","text":{"fr":"","en":"The average rate for the first nine months of 20X1.","es":""},"correct":false,"feedback":{"fr":"","en":"An average rate is not the spot rate at the date of the calculation.","es":""}},{"id":"C","text":{"fr":"","en":"The forward rates matching the maturity of each cash flow.","es":""},"correct":false,"feedback":{"fr":"","en":"The cash flows are not translated one by one: it is the present value in the foreign currency that is translated.","es":""}},{"id":"D","text":{"fr":"","en":"The spot rate at 30 September 20X1.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000178","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000401","tested_point":"VG.IAS36.000401","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"Perlaise, whose functional currency is the euro, holds a bottling plant in the United States. At 31 December 20X1, the net cash flows expected from this asset are {cash_flow_y1} USD in 20X2 and {cash_flow_y2} USD in 20X3, with no other cash flows. The appropriate pre-tax discount rate for the dollar is {usd_discount_rate}. At 31 December 20X1, the spot rate is 1 USD = {spot_rate} EUR. Calculate value in use in dollars, then in euros.","es":""},"explanation":{"fr":"","en":"The cash flows are discounted in dollars at the dollar-specific rate, then the present value is translated at the spot rate at the date of the calculation (IAS 36, para. 54): 110,000 / 1.10 = 100,000; 121,000 / 1.21 = 100,000; value in use = 200,000 USD; 200,000 × 0.90 = 180,000 EUR.","es":""},"common_error":{"fr":"","en":"Translating each cash flow into euros before discounting it at the euro rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_flow_y1","value":"110000","unit":"UNITS"},{"id":"cash_flow_y2","value":"121000","unit":"UNITS"},{"id":"usd_discount_rate","value":"10","unit":"PERCENT"},{"id":"spot_rate","value":"0.90","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Net cash flow for 20X2 (USD)","es":""},"value":"110000","unit":"UNITS"},{"label":{"fr":"","en":"Net cash flow for 20X3 (USD)","es":""},"value":"121000","unit":"UNITS"},{"label":{"fr":"","en":"Dollar-specific discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Spot rate (EUR per 1 USD)","es":""},"value":"0.90","unit":"UNITS"}],"steps":[{"id":"VIU_USD","label":{"fr":"","en":"Value in use in dollars","es":""},"answer":200000,"tolerance":0,"unit":"UNITS"},{"id":"VIU_EUR","label":{"fr":"","en":"Value in use in euros","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"VIU_EUR","meaning":{"fr":"","en":"Value in use in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use in dollars","es":""},"value":200000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Spot rate (EUR per 1 USD)","es":""},"value":0.9,"unit":"UNITS"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cash flows are discounted in dollars at the dollar-specific rate, then the present value is translated at the spot rate at the date of the calculation (IAS 36, para. 54): 110,000 / 1.10 = 100,000","es":""},"references":["REF.IAS36.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000179","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000401","tested_point":"VG.IAS36.000401","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"A Swiss testing laboratory belongs to Quintavel (functional currency: euro). It will generate {chf_flow_a} CHF in one year and {chf_flow_b} CHF in two years, then nothing more. A pre-tax rate of {chf_rate} is appropriate for cash flows in Swiss francs. On the day of the test, 1 CHF is exchanged at spot for {eur_per_chf} EUR. What is the laboratory's value in use, in Swiss francs and then in euros?","es":""},"explanation":{"fr":"","en":"Discounting in Swiss francs at the franc-specific rate, then translating the present value at the spot rate on the day of the calculation (IAS 36, para. 54): 52,000 / 1.04 = 50,000; 54,080 / 1.0816 = 50,000; value in use = 100,000 CHF; 100,000 × 1.05 = 105,000 EUR.","es":""},"common_error":{"fr":"","en":"Dividing the second cash flow by 1.04 instead of 1.0816.","es":""},"format":"CALCULATION","placeholders":[{"id":"chf_flow_a","value":"52000","unit":"UNITS"},{"id":"chf_flow_b","value":"54080","unit":"UNITS"},{"id":"chf_rate","value":"4","unit":"PERCENT"},{"id":"eur_per_chf","value":"1.05","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Cash flow in one year (CHF)","es":""},"value":"52000","unit":"UNITS"},{"label":{"fr":"","en":"Cash flow in two years (CHF)","es":""},"value":"54080","unit":"UNITS"},{"label":{"fr":"","en":"Swiss franc-specific discount rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Spot rate (EUR per 1 CHF)","es":""},"value":"1.05","unit":"UNITS"}],"steps":[{"id":"PV_CHF","label":{"fr":"","en":"Value in use in Swiss francs","es":""},"answer":100000,"tolerance":0,"unit":"UNITS"},{"id":"PV_EUR","label":{"fr":"","en":"Value in use in euros","es":""},"answer":105000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_EUR","meaning":{"fr":"","en":"Value in use in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use in Swiss francs","es":""},"value":100000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Spot rate (EUR per 1 CHF)","es":""},"value":1.05,"unit":"UNITS"}],"result":105000,"unit":"EUR"}],"rationale":{"fr":"","en":"Discounting in Swiss francs at the franc-specific rate, then translating the present value at the spot rate on the day of the calculation (IAS 36, para. 54): 52,000 / 1.04 = 50,000","es":""},"references":["REF.IAS36.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000180","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000402","tested_point":"VG.IAS36.000402","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Rambrune is testing a data centre located in the United Kingdom. Expected net cash flows, in pounds sterling: {gbp_flow_20x2} in 20X2, {gbp_flow_20x3} in 20X3 and {gbp_flow_20x4} in 20X4. The treasury department provides: a pre-tax rate appropriate for the pound of {gbp_rate}, a pre-tax rate appropriate for the euro of {eur_rate}, a spot rate at 31 December 20X1 of 1 GBP = {spot_gbp} EUR and a forecast rate for 20X4 of 1 GBP = {forecast_gbp_20x4} EUR. Calculate value in use in pounds, then in euros.","es":""},"explanation":{"fr":"","en":"Only the relevant data are used: cash flows in pounds, the pound-specific rate, then translation of the present value at the spot rate at the date of the calculation (IAS 36, para. 54). The euro rate and the forecast rate are not used. Calculation: 66,000 / 1.10 = 60,000; 72,600 / 1.21 = 60,000; 79,860 / 1.331 = 60,000; value in use = 180,000 GBP; 180,000 × 1.15 = 207,000 EUR.","es":""},"common_error":{"fr":"","en":"Discounting the cash flows at the euro rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"gbp_flow_20x2","value":"66000","unit":"UNITS"},{"id":"gbp_flow_20x3","value":"72600","unit":"UNITS"},{"id":"gbp_flow_20x4","value":"79860","unit":"UNITS"},{"id":"gbp_rate","value":"10","unit":"PERCENT"},{"id":"eur_rate","value":"7","unit":"PERCENT"},{"id":"spot_gbp","value":"1.15","unit":"UNITS"},{"id":"forecast_gbp_20x4","value":"1.10","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Net cash flow for 20X2 (GBP)","es":""},"value":"66000","unit":"UNITS"},{"label":{"fr":"","en":"Net cash flow for 20X3 (GBP)","es":""},"value":"72600","unit":"UNITS"},{"label":{"fr":"","en":"Net cash flow for 20X4 (GBP)","es":""},"value":"79860","unit":"UNITS"},{"label":{"fr":"","en":"Pre-tax rate specific to the pound","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Pre-tax rate specific to the euro","es":""},"value":"7","unit":"PERCENT"},{"label":{"fr":"","en":"Spot rate at 31 December 20X1 (EUR per 1 GBP)","es":""},"value":"1.15","unit":"UNITS"},{"label":{"fr":"","en":"Forecast rate for 20X4 (EUR per 1 GBP)","es":""},"value":"1.10","unit":"UNITS"}],"steps":[{"id":"VIU_GBP","label":{"fr":"","en":"Value in use in pounds","es":""},"answer":180000,"tolerance":0,"unit":"UNITS"},{"id":"VIU_IN_EUR","label":{"fr":"","en":"Value in use in euros","es":""},"answer":207000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"VIU_IN_EUR","meaning":{"fr":"","en":"Value in use in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use in pounds","es":""},"value":180000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Spot rate at 31 December 20X1 (EUR per 1 GBP)","es":""},"value":1.15,"unit":"UNITS"}],"result":207000,"unit":"EUR"}],"rationale":{"fr":"","en":"Only the relevant data are used: cash flows in pounds, the pound-specific rate, then translation of the present value at the spot rate at the date of the calculation (IAS 36, para. 54).","es":""},"references":["REF.IAS36.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000181","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.FOREIGN_CURRENCY"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000402","tested_point":"VG.IAS36.000402","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000007","section_id":"foreign-currency"},"references":["IAS 36 §54"],"exercise":{"prompt":{"fr":"","en":"A Canadian sawmill of Sablerac (functional currency: euro) must be tested at 30 June 20X1. The controller has the net cash flows in Canadian dollars for the next three years ({cad_flow_1}, {cad_flow_2} and {cad_flow_3}), a pre-tax rate suited to the Canadian dollar of {cad_rate} and a pre-tax rate suited to the euro of {euro_rate}. The controller also knows the spot rate at 30 June 20X1 (1 CAD = {spot_cad} EUR) and the average rate for the first half-year (1 CAD = {average_cad} EUR). Determine value in use in Canadian dollars and its equivalent in euros.","es":""},"explanation":{"fr":"","en":"The present value is calculated in Canadian dollars at the rate specific to that currency, then translated at the spot rate at the date of the calculation (IAS 36, para. 54); the euro rate and the average rate are irrelevant. Calculation: 54,000 / 1.08 = 50,000; 58,320 / 1.1664 = 50,000; 62,985.60 / 1.259712 = 50,000; value in use = 150,000 CAD; 150,000 × 0.68 = 102,000 EUR.","es":""},"common_error":{"fr":"","en":"Translating at the half-year average rate (105,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cad_flow_1","value":"54000","unit":"UNITS"},{"id":"cad_flow_2","value":"58320","unit":"UNITS"},{"id":"cad_flow_3","value":"62985.60","unit":"UNITS"},{"id":"cad_rate","value":"8","unit":"PERCENT"},{"id":"euro_rate","value":"6","unit":"PERCENT"},{"id":"spot_cad","value":"0.68","unit":"UNITS"},{"id":"average_cad","value":"0.70","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Net cash flow for the first year (CAD)","es":""},"value":"54000","unit":"UNITS"},{"label":{"fr":"","en":"Net cash flow for the second year (CAD)","es":""},"value":"58320","unit":"UNITS"},{"label":{"fr":"","en":"Net cash flow for the third year (CAD)","es":""},"value":"62985.60","unit":"UNITS"},{"label":{"fr":"","en":"Pre-tax rate suited to the Canadian dollar","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Pre-tax rate suited to the euro","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Spot rate at 30 June 20X1 (EUR per 1 CAD)","es":""},"value":"0.68","unit":"UNITS"},{"label":{"fr":"","en":"Average rate for the first half-year (EUR per 1 CAD)","es":""},"value":"0.70","unit":"UNITS"}],"steps":[{"id":"VALUE_CAD","label":{"fr":"","en":"Value in use in Canadian dollars","es":""},"answer":150000,"tolerance":0,"unit":"UNITS"},{"id":"VALUE_EUR","label":{"fr":"","en":"Value in use in euros","es":""},"answer":102000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"VALUE_EUR","meaning":{"fr":"","en":"Value in use in euros","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use in Canadian dollars","es":""},"value":150000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Spot rate at 30 June 20X1 (EUR per 1 CAD)","es":""},"value":0.68,"unit":"UNITS"}],"result":102000,"unit":"EUR"}],"rationale":{"fr":"","en":"The present value is calculated in Canadian dollars at the rate specific to that currency, then translated at the spot rate at the date of the calculation (IAS 36, para. 54)","es":""},"references":["REF.IAS36.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000182","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000182","tested_point":"QST.IAS36.000182","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §55","IAS 36 §A20"],"exercise":{"prompt":{"fr":"","en":"True or false? The value in use discount rate is a post-tax rate, since the entity bears income tax on the profits generated by the asset.","es":""},"explanation":{"fr":"","en":"False. The discount rate is a pre-tax rate (IAS 36, para. 55). If the entity starts from a post-tax rate, such as a post-tax weighted average cost of capital, it must convert it into a pre-tax rate (IAS 36, para. A20).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000183","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000183","tested_point":"QST.IAS36.000183","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"True or false? Ulvarède acquired a vessel with a subsidised loan at 2%: this borrowing rate must be used as the discount rate for the vessel's value in use.","es":""},"explanation":{"fr":"","en":"False. The discount rate is independent of the entity's capital structure and of the way the entity financed the purchase of the asset (IAS 36, para. A19). A subsidised loan says nothing about the market's assessment of the risks specific to the vessel.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000184","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000184","tested_point":"QST.IAS36.000184","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A15","IAS 36 §A18"],"exercise":{"prompt":{"fr":"","en":"True or false? Vimorel has already adjusted the cash flows of its subsidiary in an unstable country by weighting business interruption scenarios linked to country risk. The discount rate must therefore not include a premium for that same country risk.","es":""},"explanation":{"fr":"","en":"True. The rate must not reflect risks for which the cash flows have already been adjusted, otherwise their effect would be counted twice (IAS 36, para. A15). Country risk is one of the risks to consider when adjusting a starting rate (IAS 36, para. A18), but only if it is not already built into the cash flows.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000185","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000185","tested_point":"QST.IAS36.000185","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §55","IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"Which description matches the discount rate to be used to calculate value in use?","es":""},"explanation":{"fr":"","en":"The rate is a pre-tax rate that reflects current market assessments of the time value of money and of the risks specific to the asset for which the cash flows have not been adjusted (IAS 36, para. 55). It is independent of the entity's capital structure (IAS 36, para. A19).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average interest rate on the entity's debt at the year-end, without adjustment, as it reflects the actual cost of its financing and the confidence its lenders place in it.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate does not depend on the entity's capital structure and must reflect the risks specific to the asset.","es":""}},{"id":"B","text":{"fr":"","en":"The rate used at the date the asset was acquired, kept unchanged for comparability.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate reflects current market assessments, not those at the acquisition date.","es":""}},{"id":"C","text":{"fr":"","en":"A pre-tax rate reflecting current market assessments of the time value and of the asset-specific risks not taken into account in the cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A post-tax rate reflecting the return required by the entity's shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is pre-tax and specific to the asset, not that of the entity's shareholders.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000186","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000186","tested_point":"QST.IAS36.000186","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §57","IAS 36 §A17","IAS 36 §A18"],"exercise":{"prompt":{"fr":"","en":"No asset-specific rate is observable in the market for a Wendrac plant. Which approach complies with IAS 36 for estimating the discount rate?","es":""},"explanation":{"fr":"","en":"When no asset-specific rate is observable, the entity uses surrogates (IAS 36, para. 57). It may start from its weighted average cost of capital, determined for example using the CAPM, its incremental borrowing rate or other market borrowing rates (IAS 36, para. A17). These rates are then adjusted to reflect the way the market would assess the risks specific to the asset's cash flows and to exclude risks that are not relevant or already reflected in the cash flows (IAS 36, para. A18).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Start from the weighted average cost of capital, the incremental borrowing rate or other market rates, then adjust them for the asset-specific risks.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Use the interest rate on the loan that financed the plant, since it is observable.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate does not depend on how the purchase was financed, and a starting rate must be adjusted.","es":""}},{"id":"C","text":{"fr":"","en":"Reuse, unchanged, the rate applied in the previous year's test.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate reflects current market assessments: it cannot be frozen.","es":""}},{"id":"D","text":{"fr":"","en":"Give up calculating value in use and use only fair value less costs of disposal, since the rate is not directly observable in an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an observable rate does not exempt the entity from the calculation: IAS 36 provides for surrogates.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000187","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000187","tested_point":"QST.IAS36.000187","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §56","IAS 36 §55"],"exercise":{"prompt":{"fr":"","en":"The rate that reflects the time value of money and the risks specific to an asset corresponds to which return?","es":""},"explanation":{"fr":"","en":"The discount rate is a pre-tax rate reflecting current market assessments of the time value and of the risks specific to the asset (IAS 36, para. 55). It is the return that investors would require if they were to choose an investment generating cash flows of amounts, timing and risk profile equivalent to those expected from the asset (IAS 36, para. 56).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The minimum return that management sets for its internal investment projects.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate reflects a market assessment, not an internal management target.","es":""}},{"id":"B","text":{"fr":"","en":"The government risk-free rate, since value in use is entity-specific.","es":""},"correct":false,"feedback":{"fr":"","en":"The risk-free rate only reflects the time value: the asset-specific risks not taken into account in the cash flows are missing.","es":""}},{"id":"C","text":{"fr":"","en":"The asset's past accounting rate of return.","es":""},"correct":false,"feedback":{"fr":"","en":"A past accounting return is not a market return required by investors.","es":""}},{"id":"D","text":{"fr":"","en":"The return investors would require from an investment with equivalent cash flow amounts, timing and risk.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000188","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000188","tested_point":"QST.IAS36.000188","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A18","IAS 36 §A19","IAS 36 §A15"],"exercise":{"prompt":{"fr":"","en":"Xaintrel is adjusting its weighted average cost of capital, used as a starting rate, to discount the cash flows of a plantation located abroad. Which of the following items are among the adjustment factors to consider?","es":""},"explanation":{"fr":"","en":"The starting rate is adjusted to reflect the way the market would assess the risks specific to the asset's cash flows; country risk, currency risk and price risk are among the factors to consider (IAS 36, para. A18). By contrast, the entity's capital structure is irrelevant (IAS 36, para. A19) and risks already reflected in the cash flows are excluded to avoid double counting (IAS 36, para. A15).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The share of debt in Xaintrel's capital structure.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is independent of the entity's capital structure.","es":""}},{"id":"B","text":{"fr":"","en":"Country risk.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Currency risk.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Harvest risk, already built into the cash flows through weighted scenarios.","es":""},"correct":false,"feedback":{"fr":"","en":"A risk already reflected in the cash flows must not be added to the rate.","es":""}},{"id":"E","text":{"fr":"","en":"Price risk.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000189","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000189","tested_point":"QST.IAS36.000189","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A21","IAS 36 §A15","IAS 36 §A20","IAS 36 §56","IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"Yzerande's audit committee is examining the methodology note on the discount rate used in its impairment tests. Which of the note's statements are correct?","es":""},"explanation":{"fr":"","en":"A single rate is normally used, but separate rates for different periods are used when value in use is sensitive to differences in risks or to the term structure of interest rates (IAS 36, para. A21). A post-tax starting rate must be converted into a pre-tax rate (IAS 36, para. A20). The rate may be estimated from the rate implicit in current market transactions for similar assets (IAS 36, para. 56). By contrast, a risk already built into the cash flows is not repeated in the rate (IAS 36, para. A15), and the rate does not depend on financing, even intragroup (IAS 36, para. A19).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separate rates for different periods are used when value in use is sensitive to the term structure of interest rates.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Out of prudence, the rate includes a premium for volume risk, although the cash flows are already weighted by volume scenarios.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence does not justify double counting: a risk reflected in the cash flows is not repeated in the rate.","es":""}},{"id":"C","text":{"fr":"","en":"The post-tax weighted average cost of capital, used as a starting point, is converted into a pre-tax rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The rate may be estimated from the rate implicit in current market transactions for similar assets.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"For subsidiaries financed by the parent at 1%, the discount rate used is 1%.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is independent of the entity's financing, including intragroup financing.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000190","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000403","tested_point":"VG.IAS36.000403","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §55","IAS 36 §A21"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X1, Zélandre is estimating the value in use of an injection moulding press with a remaining useful life of three years. The expected pre-tax net cash flows are {flow_20x2} in 20X2, {flow_20x3} in 20X3 and {flow_20x4} in 20X4, received at year-end. The pre-tax discount rate, a single rate for the whole period, is {pre_tax_rate}. What is value in use?","es":""},"explanation":{"fr":"","en":"The cash flows are discounted at the pre-tax rate reflecting the time value and the risks specific to the asset (IAS 36, para. 55), here a single rate for the whole period (IAS 36, para. A21): 55,000 / 1.10 = 50,000; 72,600 / 1.21 = 60,000; 66,550 / 1.331 = 50,000; value in use = 160,000.","es":""},"common_error":{"fr":"","en":"Adding up the cash flows without discounting them (194,150).","es":""},"format":"CALCULATION","placeholders":[{"id":"flow_20x2","value":"55000","unit":"EUR"},{"id":"flow_20x3","value":"72600","unit":"EUR"},{"id":"flow_20x4","value":"66550","unit":"EUR"},{"id":"pre_tax_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net cash flow for 20X2","es":""},"value":"55000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for 20X3","es":""},"value":"72600","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for 20X4","es":""},"value":"66550","unit":"EUR"},{"label":{"fr":"","en":"Pre-tax discount rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000191","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000403","tested_point":"VG.IAS36.000403","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §55","IAS 36 §A21"],"exercise":{"prompt":{"fr":"","en":"A refrigerated truck owned by Aldivar has only two years of operation left. It should bring in {net_inflow_1} at the end of the first year and {net_inflow_2} at the end of the second, net pre-tax amounts. The market requires a pre-tax return of {rate} for an asset with this profile. Determine its value in use.","es":""},"explanation":{"fr":"","en":"The pre-tax rate of 8% reflects the market's assessment of the time value and of the risks specific to the truck (IAS 36, para. 55); a single rate is applied (IAS 36, para. A21): 32,400 / 1.08 = 30,000; 46,656 / 1.1664 = 40,000; value in use = 70,000.","es":""},"common_error":{"fr":"","en":"Dividing the second cash flow by 1.16 instead of 1.1664.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_inflow_1","value":"32400","unit":"EUR"},{"id":"net_inflow_2","value":"46656","unit":"EUR"},{"id":"rate","value":"8","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net cash flow for the first year","es":""},"value":"32400","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for the second year","es":""},"value":"46656","unit":"EUR"},{"label":{"fr":"","en":"Pre-tax return required by the market","es":""},"value":"8","unit":"PERCENT"}],"steps":[{"id":"VIU","label":{"fr":"","en":"Value in use","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000192","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000404","tested_point":"VG.IAS36.000404","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A21","IAS 36 §55"],"exercise":{"prompt":{"fr":"","en":"The value in use of a network of charging stations owned by Bérivane is sensitive to the term structure of interest rates. The expected pre-tax net cash flows are {cf_year_1} at the end of year 1 and {cf_year_2} at the end of year 2. The appropriate pre-tax rates are {rate_year_1} for the one-year maturity and {rate_year_2} a year for the two-year maturity; each cash flow is discounted at the annual rate for its own maturity. Calculate value in use.","es":""},"explanation":{"fr":"","en":"When value in use is sensitive to the term structure of interest rates, separate rates for different periods are used instead of a single rate (IAS 36, para. A21); each remains a pre-tax rate (IAS 36, para. 55). Calculation: 42,000 / 1.05 = 40,000; 60,500 / 1.10² = 60,500 / 1.21 = 50,000; value in use = 90,000.","es":""},"common_error":{"fr":"","en":"Applying the 10% rate to both cash flows.","es":""},"format":"CALCULATION","placeholders":[{"id":"cf_year_1","value":"42000","unit":"EUR"},{"id":"cf_year_2","value":"60500","unit":"EUR"},{"id":"rate_year_1","value":"5","unit":"PERCENT"},{"id":"rate_year_2","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net cash flow for year 1","es":""},"value":"42000","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for year 2","es":""},"value":"60500","unit":"EUR"},{"label":{"fr":"","en":"One-year pre-tax rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Two-year annual pre-tax rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"VALUE_IN_USE","label":{"fr":"","en":"Value in use","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000193","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000404","tested_point":"VG.IAS36.000404","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A21","IAS 36 §55"],"exercise":{"prompt":{"fr":"","en":"A car park concession held by Cassignol expires in three years. Its pre-tax net cash flows, received at year-end, would be {inflow_a} in the first year, {inflow_b} in the second and {inflow_c} in the third. As risks differ by horizon, management uses a separate annual pre-tax rate for each maturity: {spot_rate_a} for one year, {spot_rate_b} for two years and {spot_rate_c} for three years, each cash flow being discounted at the rate for its maturity over its term. What value in use is obtained?","es":""},"explanation":{"fr":"","en":"Separate rates for different periods are used when value in use is sensitive to differences in risks over time (IAS 36, para. A21), each being a pre-tax rate (IAS 36, para. 55). Calculation: 31,800 / 1.06 = 30,000; 58,320 / 1.08² = 58,320 / 1.1664 = 50,000; 64,751.45 / 1.09³ = 64,751.45 / 1.295029 = 50,000; value in use = 130,000.","es":""},"common_error":{"fr":"","en":"Discounting all the cash flows at the 9% rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"inflow_a","value":"31800","unit":"EUR"},{"id":"inflow_b","value":"58320","unit":"EUR"},{"id":"inflow_c","value":"64751.45","unit":"EUR"},{"id":"spot_rate_a","value":"6","unit":"PERCENT"},{"id":"spot_rate_b","value":"8","unit":"PERCENT"},{"id":"spot_rate_c","value":"9","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net cash flow for the first year","es":""},"value":"31800","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for the second year","es":""},"value":"58320","unit":"EUR"},{"label":{"fr":"","en":"Net cash flow for the third year","es":""},"value":"64751.45","unit":"EUR"},{"label":{"fr":"","en":"One-year annual rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Two-year annual rate","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Three-year annual rate","es":""},"value":"9","unit":"PERCENT"}],"steps":[{"id":"VIU_TOTAL","label":{"fr":"","en":"Value in use","es":""},"answer":130000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000194","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000405","tested_point":"VG.IAS36.000405","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A17","IAS 36 §A18","IAS 36 §A15","IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"Dravelle is determining the discount rate for a plant located in an emerging country. It starts from its pre-tax weighted average cost of capital of {wacc_pre_tax}. The market would require a premium of {country_premium} for country risk, which the cash flows do not reflect. It would also require a premium of {price_premium} for raw material price risk, but the cash flows already include this risk through weighted price scenarios. The plant was financed with a subsidised loan at {subsidised_loan_rate}. Which pre-tax discount rate should be used?","es":""},"explanation":{"fr":"","en":"The weighted average cost of capital is an accepted starting point (IAS 36, para. A17). It is adjusted to reflect the risks specific to the asset's cash flows, including country risk (IAS 36, para. A18), but not for a risk already built into the cash flows, which would be double counting (IAS 36, para. A15). The subsidised loan is irrelevant, as the rate is independent of how the purchase was financed (IAS 36, para. A19). Rate = 8% + 2 points = 10%.","es":""},"common_error":{"fr":"","en":"Also adding the price risk premium (11.5%).","es":""},"format":"CALCULATION","placeholders":[{"id":"wacc_pre_tax","value":"8","unit":"PERCENT"},{"id":"country_premium","value":"2","unit":"PERCENT"},{"id":"price_premium","value":"1.5","unit":"PERCENT"},{"id":"subsidised_loan_rate","value":"3","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Pre-tax weighted average cost of capital (% points)","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Country risk premium (% points)","es":""},"value":"2","unit":"PERCENT"},{"label":{"fr":"","en":"Price risk premium (% points)","es":""},"value":"1.5","unit":"PERCENT"},{"label":{"fr":"","en":"Subsidised loan rate","es":""},"value":"3","unit":"PERCENT"}],"steps":[{"id":"DISCOUNT_RATE","label":{"fr":"","en":"Pre-tax discount rate","es":""},"answer":10,"tolerance":0,"unit":"PERCENT"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000195","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000405","tested_point":"VG.IAS36.000405","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A17","IAS 36 §A18","IAS 36 §A15","IAS 36 §A19"],"exercise":{"prompt":{"fr":"","en":"For a solar plant operated abroad, Escalvin uses as its starting point its pre-tax incremental borrowing rate of {incremental_borrowing_rate}. The cash flows do not take currency risk into account, for which the market would require an extra {currency_risk_premium}. Country risk, valued by the market at {country_risk_premium}, is however already built into the cash flows through weighted interruption scenarios. The plant is financed by an intragroup loan at {intragroup_rate}. Determine the pre-tax discount rate.","es":""},"explanation":{"fr":"","en":"The incremental borrowing rate is a possible starting point (IAS 36, para. A17), adjusted for the risks specific to the asset's cash flows, including currency risk (IAS 36, para. A18). Country risk, already dealt with in the cash flows, is not added to the rate (IAS 36, para. A15), and the intragroup loan is irrelevant (IAS 36, para. A19). Rate = 6% + 1 point = 7%.","es":""},"common_error":{"fr":"","en":"Adding country risk even though it is already in the cash flows (9.5%).","es":""},"format":"CALCULATION","placeholders":[{"id":"incremental_borrowing_rate","value":"6","unit":"PERCENT"},{"id":"currency_risk_premium","value":"1","unit":"PERCENT"},{"id":"country_risk_premium","value":"2.5","unit":"PERCENT"},{"id":"intragroup_rate","value":"2","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Pre-tax incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Currency risk premium (% points)","es":""},"value":"1","unit":"PERCENT"},{"label":{"fr":"","en":"Country risk premium (% points)","es":""},"value":"2.5","unit":"PERCENT"},{"label":{"fr":"","en":"Intragroup loan rate","es":""},"value":"2","unit":"PERCENT"}],"steps":[{"id":"RATE_TO_USE","label":{"fr":"","en":"Pre-tax discount rate to use","es":""},"answer":7,"tolerance":0,"unit":"PERCENT"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000197","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000197","tested_point":"QST.IAS36.000197","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"rate-rule"},"references":["IAS 36 §A16","IAS 36 §57"],"exercise":{"prompt":{"fr":"","en":"As no observable rate specific to a hydroelectric dam exists, Gerbaude uses a surrogate rate. What must this rate reflect?","es":""},"explanation":{"fr":"","en":"When no asset-specific rate is observable, the entity uses surrogates (IAS 36, para. 57). They aim to estimate the market assessment of the time value of money up to the end of the asset's useful life and of the risk factors, such as variations in the amount or timing of cash flows and the price of uncertainty, that are not already taken into account in the cash flows (IAS 36, para. A16).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The time value of money only, since risks are excluded in principle from a surrogate rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The surrogate must also reflect the risk factors not taken into account in the cash flows.","es":""}},{"id":"B","text":{"fr":"","en":"The market assessment of the time value up to the end of the useful life and of the risks not already built into the cash flows.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All the risks of the asset, including those already built into the cash flows through weighted scenarios, in order to create a safety margin.","es":""},"correct":false,"feedback":{"fr":"","en":"Repeating in the rate risks already built into the cash flows would count them twice.","es":""}},{"id":"D","text":{"fr":"","en":"The time value of money over a one-year horizon, whatever the useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"The time value is assessed up to the end of the asset's useful life.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000198","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000198","tested_point":"QST.IAS36.000198","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A4","IAS 36 §A7"],"exercise":{"prompt":{"fr":"","en":"In the traditional present value approach described in Appendix A of IAS 36, how is the risk specific to the asset built into the measurement?","es":""},"explanation":{"fr":"","en":"The traditional approach uses a single set of cash flows, the most likely one, and discounts it at a single rate meant to reflect all the risks; the whole issue then lies in choosing the rate (IAS 36, para. A4). The expected cash flow approach, by contrast, uses all the expectations about cash flows weighted by their probabilities (IAS 36, para. A7).","es":""},"common_error":{"fr":"","en":"Confusing the traditional approach with the expected cash flow approach.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By weighting several cash flow scenarios by their respective probabilities, the discount rate remaining neutral","es":""},"correct":false,"feedback":{"fr":"","en":"That describes the expected cash flow approach, not the traditional approach.","es":""}},{"id":"B","text":{"fr":"","en":"Through a single discount rate applied to a single set of cash flows, the most likely one","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Twice, out of prudence: once by reducing the cash flows and a second time by increasing the discount rate","es":""},"correct":false,"feedback":{"fr":"","en":"Counting the same risk twice is contrary to the principle of consistency between cash flows and rate.","es":""}},{"id":"D","text":{"fr":"","en":"It is not built in: the rate is always the risk-free rate","es":""},"correct":false,"feedback":{"fr":"","en":"In the traditional approach, it is precisely the rate that carries the risk.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000199","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000199","tested_point":"QST.IAS36.000199","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A3","IAS 36 §A1"],"exercise":{"prompt":{"fr":"","en":"The financial controller of Brivane is preparing a present value estimate for an impairment test. Which of the following practices comply with the general principles of Appendix A of IAS 36? (several answers)","es":""},"explanation":{"fr":"","en":"Appendix A sets three principles: rates consistent with the cash flows, with no double counting of the same risk, cash flows and rates free from bias, and consideration of the range of possible outcomes (IAS 36, para. A3). The elements underlying a present value measurement indeed include expectations about possible variations in the cash flows and the price of uncertainty (IAS 36, para. A1). Prudence justifies neither a double adjustment for risk nor a deliberate understatement of cash flows.","es":""},"common_error":{"fr":"","en":"Believing that prudence allows risk to be adjusted for both in the cash flows and in the rate.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Increasing the discount rate for a risk already reflected in the adjusted cash flows, out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"A risk already reflected in the cash flows must not be counted a second time in the rate.","es":""}},{"id":"B","text":{"fr":"","en":"Using a discount rate whose assumptions are consistent with those of the cash flows","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Ensuring that the cash flows and the rate are free from bias","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Reflecting the range of possible outcomes rather than a single arbitrary amount","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Deliberately understating projected cash flows to guard against a future loss","es":""},"correct":false,"feedback":{"fr":"","en":"Deliberate understatement introduces a bias, which Appendix A rules out.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000200","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000200","tested_point":"QST.IAS36.000200","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A14","IAS 36 §A2"],"exercise":{"prompt":{"fr":"","en":"For a specialised press, Ortalis expects a single net cash flow next year: 20,000 with a probability of 40% or 70,000 with a probability of 60%. An analyst argues that the expected cash flow is meaningless, since neither outcome equals that average, and proposes using 70,000. Which answer complies with Appendix A of IAS 36?","es":""},"explanation":{"fr":"","en":"The objection that the expected cash flow is unsuitable for a unique item with few outcomes addresses a different measurement objective: IAS 36 seeks the recoverable amount of the asset, which the most likely amount alone does not represent (IAS 36, para. A14). Whatever the approach, the result must reflect the weighted average of the possible outcomes (IAS 36, para. A2): 40% × 20,000 + 60% × 70,000 = 8,000 + 42,000 = 50,000.","es":""},"common_error":{"fr":"","en":"Using the most likely scenario as though it summarised the uncertainty on its own.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use 70,000, because only the most likely amount represents a unique item such as this press","es":""},"correct":false,"feedback":{"fr":"","en":"The most likely amount on its own does not represent the recoverable amount: it ignores the 40% outcome.","es":""}},{"id":"B","text":{"fr":"","en":"Use 45,000, the simple average of the two possible outcomes","es":""},"correct":false,"feedback":{"fr":"","en":"The simple average ignores the probabilities: each outcome must be weighted by its own.","es":""}},{"id":"C","text":{"fr":"","en":"Use 50,000, because the measurement targets the recoverable amount of the asset and must reflect the weighted average of the outcomes","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Use 20,000, the least favourable outcome, so as never to overstate the asset","es":""},"correct":false,"feedback":{"fr":"","en":"Systematically using the unfavourable outcome introduces a bias.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000201","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000501","tested_point":"VG.IAS36.000501","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A7","IAS 36 §A3"],"exercise":{"prompt":{"fr":"","en":"To compute the value in use of a bottling line, Valtera uses three scenarios for the net cash flow it will receive in one year: {low_cash_flow} (probability {low_probability}), {mid_cash_flow} (probability {mid_probability}) and {high_cash_flow} (probability {high_probability}). The discount rate provided, {discount_rate}, contains no adjustment for the risks already reflected in the weighting of the scenarios. Compute the expected cash flow, then its present value.","es":""},"explanation":{"fr":"","en":"The expected cash flow approach weights all expectations about cash flows by their probabilities (IAS 36, para. A7): 20% × 80,000 + 50% × 100,000 + 30% × 120,000 = 16,000 + 50,000 + 36,000 = 102,000. As the rate is consistent with these cash flows and does not count the risk twice (IAS 36, para. A3), the present value is 102,000 / 1.02 = 100,000.","es":""},"common_error":{"fr":"","en":"Using the central scenario of 100,000 as the expected cash flow.","es":""},"format":"CALCULATION","placeholders":[{"id":"low_cash_flow","value":"80000","unit":"EUR"},{"id":"low_probability","value":"20","unit":"PERCENT"},{"id":"mid_cash_flow","value":"100000","unit":"EUR"},{"id":"mid_probability","value":"50","unit":"PERCENT"},{"id":"high_cash_flow","value":"120000","unit":"EUR"},{"id":"high_probability","value":"30","unit":"PERCENT"},{"id":"discount_rate","value":"2","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Low-scenario cash flow","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the low scenario","es":""},"value":"20","unit":"PERCENT"},{"label":{"fr":"","en":"Central-scenario cash flow","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the central scenario","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"High-scenario cash flow","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the high scenario","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate provided","es":""},"value":"2","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_CASH_FLOW","label":{"fr":"","en":"Expected cash flow","es":""},"answer":102000,"tolerance":0,"unit":"EUR"},{"id":"PRESENT_VALUE","label":{"fr":"","en":"Present value of the expected cash flow","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_CASH_FLOW","meaning":{"fr":"","en":"Expected cash flow","es":""},"expression":"a * b + c * d + e * f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Probability of the low scenario","es":""},"value":20,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Low-scenario cash flow","es":""},"value":80000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Probability of the central scenario","es":""},"value":50,"unit":"PERCENT"},{"symbol":"d","meaning":{"fr":"","en":"Central-scenario cash flow","es":""},"value":100000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Probability of the high scenario","es":""},"value":30,"unit":"PERCENT"},{"symbol":"f","meaning":{"fr":"","en":"High-scenario cash flow","es":""},"value":120000,"unit":"EUR"}],"result":102000,"unit":"EUR","rationale":{"fr":"","en":"The expected cash flow approach weights all expectations about cash flows by their probabilities (IAS 36, para. A7): 20% × 80,000 + 50% × 100,000 + 30% × 120,000 = 16,000 + 50,000 + 36,000 = 102,000.","es":""}},{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Present value of the expected cash flow","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cash flow","es":""},"value":102000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate provided","es":""},"value":2,"unit":"PERCENT"}],"result":100000,"unit":"EUR","rationale":{"fr":"","en":"As the rate is consistent with these cash flows and does not count the risk twice (IAS 36, para. A3), the present value is 102,000 / 1.02 = 100,000.","es":""}}],"references":["REF.IAS36.A7","REF.IAS36.A3"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000202","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000501","tested_point":"VG.IAS36.000501","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A7","IAS 36 §A3"],"exercise":{"prompt":{"fr":"","en":"Nordalis licenses out a process patent. Next year's net royalties, received at year-end, will depend on demand: {low_cash_flow} if it weakens ({low_probability} chance), {mid_cash_flow} if it holds steady ({mid_probability}) and {high_cash_flow} if it grows ({high_probability}). The rate of {discount_rate} provided by group treasury is consistent with cash flows already weighted by their probabilities. Determine the expected cash flow and its present value.","es":""},"explanation":{"fr":"","en":"The expected cash flow is the sum of the possible cash flows weighted by their probabilities (IAS 36, para. A7): 30% × 50,000 + 40% × 60,000 + 30% × 80,000 = 15,000 + 24,000 + 24,000 = 63,000. The rate, consistent with these cash flows, must not include a second time the risk already reflected by the weighting (IAS 36, para. A3): 63,000 / 1.05 = 60,000.","es":""},"common_error":{"fr":"","en":"Using 60,000, the most likely scenario, as the expected cash flow.","es":""},"format":"CALCULATION","placeholders":[{"id":"low_cash_flow","value":"50000","unit":"EUR"},{"id":"low_probability","value":"30","unit":"PERCENT"},{"id":"mid_cash_flow","value":"60000","unit":"EUR"},{"id":"mid_probability","value":"40","unit":"PERCENT"},{"id":"high_cash_flow","value":"80000","unit":"EUR"},{"id":"high_probability","value":"30","unit":"PERCENT"},{"id":"discount_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Royalties if demand weakens","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Probability of weaker demand","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Royalties if demand holds steady","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Probability of steady demand","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Royalties if demand grows","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Probability of growing demand","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_CASH_FLOW","label":{"fr":"","en":"Expected cash flow","es":""},"answer":63000,"tolerance":0,"unit":"EUR"},{"id":"PRESENT_VALUE","label":{"fr":"","en":"Present value of the expected cash flow","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Present value of the expected cash flow","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cash flow","es":""},"value":63000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"The rate, consistent with these cash flows, must not include a second time the risk already reflected by the weighting (IAS 36, para. A3): 63,000 / 1.05 = 60,000.","es":""}}],"references":["REF.IAS36.A7","REF.IAS36.A3"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000203","standard_id":"IAS36","concept_ids":["IAS36.VALUE_IN_USE.PRESENT_VALUE_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000203","tested_point":"QST.IAS36.000203","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000008","section_id":"techniques"},"references":["IAS 36 §A8","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Grimaldo expects a single cash receipt of {cash_flow} from using a piece of equipment, of which only the date is uncertain: in one year (probability {probability_year_1}) or in two years (probability {probability_year_2}). The applicable discount rates are {rate_year_1} per year for a one-year maturity and {rate_year_2} per year for a two-year maturity. Compute the expected present value of this receipt under the expected cash flow approach.","es":""},"explanation":{"fr":"","en":"When the timing is uncertain, each possible date is discounted at its own rate, then the present values are weighted by their probabilities (IAS 36, para. A8). In one year: 11,466 / 1.04 = 11,025. In two years: 11,466 / 1.05² = 11,466 / 1.1025 = 10,400. Expected present value: 40% × 11,025 + 60% × 10,400 = 4,410 + 6,240 = 10,650. The traditional approach would use only the most likely date (10,400) and ignore the other, which the rate cannot correct (IAS 36, para. A9).","es":""},"common_error":{"fr":"","en":"Using only the most likely date (10,400).","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_flow","value":"11466","unit":"EUR"},{"id":"probability_year_1","value":"40","unit":"PERCENT"},{"id":"probability_year_2","value":"60","unit":"PERCENT"},{"id":"rate_year_1","value":"4","unit":"PERCENT"},{"id":"rate_year_2","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Amount of the receipt","es":""},"value":"11466","unit":"EUR"},{"label":{"fr":"","en":"Probability of receipt in one year","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Probability of receipt in two years","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Annual rate for a one-year maturity","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Annual rate for a two-year maturity","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_PRESENT_VALUE","label":{"fr":"","en":"Expected present value","es":""},"answer":10650,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_PRESENT_VALUE","meaning":{"fr":"","en":"Expected present value","es":""},"expression":"a * (b / (1 + c)) + d * (b / (1 + e)^2)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Probability of receipt in one year","es":""},"value":40,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Amount of the receipt","es":""},"value":11466,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual rate for a one-year maturity","es":""},"value":4,"unit":"PERCENT"},{"symbol":"d","meaning":{"fr":"","en":"Probability of receipt in two years","es":""},"value":60,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"Annual rate for a two-year maturity","es":""},"value":5,"unit":"PERCENT"}],"result":10650,"unit":"EUR"}],"rationale":{"fr":"","en":"When the timing is uncertain, each possible date is discounted at its own rate, then the present values are weighted by their probabilities (IAS 36, para. A8).","es":""},"references":["REF.IAS36.A8","REF.IAS36.A9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000204","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000204","tested_point":"QST.IAS36.000204","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"True or false? For a machine measured under the cost model, the impairment loss is recognised immediately in profit or loss.","es":""},"explanation":{"fr":"","en":"True. An impairment loss is recognised immediately in profit or loss, unless the asset is carried at a revalued amount (IAS 36, para. 60). A machine measured at cost therefore falls under the general principle.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000205","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000205","tested_point":"QST.IAS36.000205","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §62"],"exercise":{"prompt":{"fr":"","en":"True or false? When the estimated amount of the impairment loss exceeds the carrying amount of the asset, the entity always recognises a liability for the excess.","es":""},"explanation":{"fr":"","en":"False. When the estimated loss exceeds the carrying amount of the asset, a liability is recognised only if another standard requires it (IAS 36, para. 62). IAS 36 does not itself create a liability for that excess.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000206","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000206","tested_point":"QST.IAS36.000206","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"For an individual asset, what does the impairment loss correspond to?","es":""},"explanation":{"fr":"","en":"When the recoverable amount of an asset is less than its carrying amount, the carrying amount is reduced to the recoverable amount; that reduction is an impairment loss (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with the original cost rather than the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The difference between the original cost of the asset and its recoverable amount, whatever its carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is made with the carrying amount, not with the original cost.","es":""}},{"id":"B","text":{"fr":"","en":"The total depreciation recognised since acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation allocates cost; it does not measure an impairment loss.","es":""}},{"id":"C","text":{"fr":"","en":"The excess of the carrying amount over the recoverable amount","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The excess of the recoverable amount over the carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The direction is reversed: a higher recoverable amount means there is no loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000207","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000207","tested_point":"QST.IAS36.000207","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"At the year-end, an industrial furnace of Lumarec, measured at cost, has a carrying amount of 500,000. The impairment test shows a recoverable amount of 520,000. What follows?","es":""},"explanation":{"fr":"","en":"The carrying amount is reduced to the recoverable amount only if the latter is lower (IAS 36, para. 59). Here, 520,000 is higher than 500,000: no loss is recognised and the carrying amount stays at 500,000.","es":""},"common_error":{"fr":"","en":"Using the impairment test to revalue an asset measured at cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a gain of 20,000 in profit or loss to reflect the increase in value observed","es":""},"correct":false,"feedback":{"fr":"","en":"The test is not used to recognise a gain: it reduces the carrying amount only if the recoverable amount is lower.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no impairment loss; the carrying amount stays at 500,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Increase the carrying amount to 520,000 against other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment test does not revalue an asset measured at cost.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise an impairment loss of 20,000 in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The direction of the comparison is reversed: 520,000 is higher than 500,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000208","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000208","tested_point":"QST.IAS36.000208","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §59","IAS 36 §60","IAS 36 §62"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements on recognising an impairment loss on an individual asset are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The asset is reduced to its recoverable amount when that amount is less than its carrying amount (IAS 36, para. 59). The loss is recognised immediately in profit or loss, except for a revalued asset, where it is a revaluation decrease (IAS 36, para. 60). If the estimated loss exceeds the carrying amount, a liability is recognised only if another standard requires it (IAS 36, para. 62).","es":""},"common_error":{"fr":"","en":"Charging the loss on an asset at cost directly to equity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loss on an asset measured at cost is recognised in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Under the cost model, the loss goes to profit or loss, not to other comprehensive income.","es":""}},{"id":"B","text":{"fr":"","en":"If the recoverable amount is less than the carrying amount, the asset is reduced to its recoverable amount","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The loss on an asset that is not revalued is recognised immediately in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A liability is always recognised when the estimated loss exceeds the carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"A liability is recognised only if another standard requires it.","es":""}},{"id":"E","text":{"fr":"","en":"The loss on a revalued asset is treated as a revaluation decrease","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000209","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000502","tested_point":"VG.IAS36.000502","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"Arvelo holds a grinding machine acquired for {cost}, whose accumulated depreciation amounts to {accumulated_depreciation} at the year-end. An indication of impairment led to an estimate of its recoverable amount of {recoverable_amount}. What is the amount of the impairment loss?","es":""},"explanation":{"fr":"","en":"The carrying amount is 500,000 − 200,000 = 300,000. As the recoverable amount is lower, the asset is reduced to 260,000 and the impairment loss amounts to 300,000 − 260,000 = 40,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with the acquisition cost (incorrect loss of 240,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"500000","unit":"EUR"},{"id":"accumulated_depreciation","value":"200000","unit":"EUR"},{"id":"recoverable_amount","value":"260000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"260000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":260000,"unit":"EUR"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"As the recoverable amount is lower, the asset is reduced to 260,000 and the impairment loss amounts to 300,000 − 260,000 = 40,000 (IAS 36, para. 59).","es":""}}],"references":["REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000210","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000502","tested_point":"VG.IAS36.000502","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §59","IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"At Belcastel, a refrigerated truck is carried at a cost of {cost} less {accumulated_depreciation} of accumulated depreciation. After losing a haulage contract, the entity estimates its fair value less costs of disposal at {fvlcd} and its value in use at {value_in_use}. Determine the impairment loss to recognise.","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18): 81,000. The carrying amount is 180,000 − 72,000 = 108,000. The asset is reduced to its recoverable amount and the loss amounts to 108,000 − 81,000 = 27,000 (IAS 36, para. 59).","es":""},"common_error":{"fr":"","en":"Using the lower of the two amounts (incorrect loss of 32,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"180000","unit":"EUR"},{"id":"accumulated_depreciation","value":"72000","unit":"EUR"},{"id":"fvlcd","value":"76000","unit":"EUR"},{"id":"value_in_use","value":"81000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the truck","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"72000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal","es":""},"value":"76000","unit":"EUR"},{"label":{"fr":"","en":"Value in use","es":""},"value":"81000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the truck","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":72000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value in use","es":""},"value":81000,"unit":"EUR"}],"result":27000,"unit":"EUR","rationale":{"fr":"","en":"The asset is reduced to its recoverable amount and the loss amounts to 108,000 − 81,000 = 27,000 (IAS 36, para. 59).","es":""}}],"references":["REF.IAS36.59","REF.IAS36.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000213","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000213","tested_point":"QST.IAS36.000213","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §62","IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Kervela operates a depot measured at cost with a carrying amount of 40,000. Its estimates show that the calculated impairment loss would reach 55,000, as the depot is expected to generate net cash outflows. No other standard requires a liability to be recognised in this situation (given). How should this situation be treated?","es":""},"explanation":{"fr":"","en":"The asset is reduced to its recoverable amount and the reduction is an impairment loss (IAS 36, para. 59), recognised in profit or loss for an asset measured at cost (IAS 36, para. 60). The loss charged against the depot cannot exceed its carrying amount of 40,000. For the excess of 15,000, a liability is recognised only if another standard requires it (IAS 36, para. 62), which is not the case according to the facts.","es":""},"common_error":{"fr":"","en":"Automatically recognising a liability for the excess part of the loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a loss of 55,000: reduce the depot to zero and recognise a liability of 15,000","es":""},"correct":false,"feedback":{"fr":"","en":"The excess of 15,000 gives rise to a liability only if another standard requires it, which is not the case here.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise a loss of 40,000 in profit or loss; the depot is reduced to zero, with no liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise nothing, as a negative value has no economic meaning for an asset","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is below the carrying amount: a loss must be recognised.","es":""}},{"id":"D","text":{"fr":"","en":"Charge 40,000 to equity and recognise a provision of 15,000 as an expense, to smooth the effect on profit","es":""},"correct":false,"feedback":{"fr":"","en":"An asset measured at cost does not allow a charge to equity, and the liability is not required here.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000214","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000214","tested_point":"QST.IAS36.000214","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Talmont measures its equipment at cost. An assembly line with a carrying amount of 210,000 has a recoverable amount of 168,000. To protect the year's profit, the finance director proposes charging the loss of 42,000 to reserves. What should you answer?","es":""},"explanation":{"fr":"","en":"An impairment loss is recognised immediately in profit or loss, unless the asset is carried at a revalued amount (IAS 36, para. 60). As the assembly line is measured at cost, the loss of 210,000 − 168,000 = 42,000 is an expense of the year; the wish to protect profit does not allow it to be charged to reserves.","es":""},"common_error":{"fr":"","en":"Charging the loss on an asset at cost directly to equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is acceptable: the loss on an asset measured at cost may be charged to available reserves","es":""},"correct":false,"feedback":{"fr":"","en":"Only a revalued asset follows a specific treatment; at cost, the loss goes to profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"The loss of 42,000 must be recognised in other comprehensive income, with no effect on net profit","es":""},"correct":false,"feedback":{"fr":"","en":"Under the cost model, the loss does not pass through other comprehensive income: it goes immediately to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"The loss of 42,000 must be recognised immediately in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The loss of 42,000 must be spread over the remaining useful life through additional depreciation","es":""},"correct":false,"feedback":{"fr":"","en":"The loss is not spread: it is recognised immediately.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000215","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000215","tested_point":"QST.IAS36.000215","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §59","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"Ombrelle tests three assets measured at cost, whose recoverable amount can be determined individually (given). Asset A: carrying amount {carrying_amount_a}, recoverable amount {recoverable_amount_a}. Asset B: carrying amount {carrying_amount_b}, recoverable amount {recoverable_amount_b}. Asset C: carrying amount {carrying_amount_c}, recoverable amount {recoverable_amount_c}. What total impairment loss is recognised in profit or loss?","es":""},"explanation":{"fr":"","en":"Each asset is reduced to its recoverable amount when that amount is less than its carrying amount (IAS 36, para. 59). A: 120,000 − 95,000 = 25,000. B: the recoverable amount of 110,000 exceeds the carrying amount of 80,000, so no loss and no revaluation. C: 60,000 − 54,000 = 6,000. As the assets are measured at cost, the losses go immediately to profit or loss (IAS 36, para. 60): 25,000 + 6,000 = 31,000.","es":""},"common_error":{"fr":"","en":"Offsetting the losses on A and C against the unrealised gain on B (incorrect amount of 1,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount_a","value":"120000","unit":"EUR"},{"id":"recoverable_amount_a","value":"95000","unit":"EUR"},{"id":"carrying_amount_b","value":"80000","unit":"EUR"},{"id":"recoverable_amount_b","value":"110000","unit":"EUR"},{"id":"carrying_amount_c","value":"60000","unit":"EUR"},{"id":"recoverable_amount_c","value":"54000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of asset A","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of asset A","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of asset B","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of asset B","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of asset C","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of asset C","es":""},"value":"54000","unit":"EUR"}],"steps":[{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Total impairment loss in profit or loss","es":""},"answer":31000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Total impairment loss in profit or loss","es":""},"expression":"(a - b) + (c - d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of asset A","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of asset A","es":""},"value":95000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of asset C","es":""},"value":60000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Recoverable amount of asset C","es":""},"value":54000,"unit":"EUR"}],"result":31000,"unit":"EUR","rationale":{"fr":"","en":"As the assets are measured at cost, the losses go immediately to profit or loss (IAS 36, para. 60): 25,000 + 6,000 = 31,000.","es":""}}],"references":["REF.IAS36.59","REF.IAS36.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000216","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000216","tested_point":"QST.IAS36.000216","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §61","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"A building is carried under the revaluation model. How is its impairment loss recognised?","es":""},"explanation":{"fr":"","en":"For a revalued asset, the loss is treated as a revaluation decrease (IAS 36, para. 60): it is recognised in other comprehensive income up to the revaluation surplus for that same asset, and the excess is recognised in profit or loss (IAS 36, para. 61).","es":""},"common_error":{"fr":"","en":"Using another asset's revaluation surplus to absorb the loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entirely in profit or loss, as for any asset","es":""},"correct":false,"feedback":{"fr":"","en":"A revalued asset is an exception: the loss is first charged against its revaluation surplus.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income up to the revaluation surplus of this building, the excess in profit or loss","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Entirely in other comprehensive income, even beyond the available revaluation surplus","es":""},"correct":false,"feedback":{"fr":"","en":"The amount charged to other comprehensive income is capped at the asset's revaluation surplus.","es":""}},{"id":"D","text":{"fr":"","en":"In other comprehensive income up to the total revaluation surplus of all the entity's assets, whichever asset generated it","es":""},"correct":false,"feedback":{"fr":"","en":"Only the revaluation surplus of the same asset can absorb the loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000217","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000504","tested_point":"VG.IAS36.000504","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"revalued-asset-rule"},"references":["IAS 36 §5","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"Hestine measures its warehouses under the revaluation model. At the reporting date, a warehouse has just been revalued to its fair value under IAS 16: its revalued carrying amount is {revalued_carrying_amount}. Its disposal would involve costs of disposal of {costs_of_disposal} and its recoverable amount, equal to its value in use, is {recoverable_amount}. The revaluation surplus relating to this warehouse amounts to {revaluation_surplus}. Allocate the impairment loss between other comprehensive income and profit or loss.","es":""},"explanation":{"fr":"","en":"As the warehouse is already measured at fair value, the IAS 36 impairment loss arises here from costs of disposal that are not negligible and a value in use below the revalued amount (IAS 36, para. 5): fair value less costs of disposal (300,000 − 18,000 = 282,000) is below value in use, which is the recoverable amount. Impairment loss: 300,000 − 284,000 = 16,000. It is recognised in other comprehensive income up to the revaluation surplus of the warehouse, i.e. 10,000, and the excess of 16,000 − 10,000 = 6,000 is recognised in profit or loss (IAS 36, para. 61).","es":""},"common_error":{"fr":"","en":"Recognising the whole loss of 16,000 in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"revalued_carrying_amount","value":"300000","unit":"EUR"},{"id":"costs_of_disposal","value":"18000","unit":"EUR"},{"id":"recoverable_amount","value":"284000","unit":"EUR"},{"id":"revaluation_surplus","value":"10000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Revalued carrying amount (fair value at the reporting date)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount (value in use)","es":""},"value":"284000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the warehouse","es":""},"value":"10000","unit":"EUR"}],"steps":[{"id":"LOSS_IN_OCI","label":{"fr":"","en":"Loss recognised in other comprehensive income","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Loss recognised in profit or loss","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Loss recognised in profit or loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued carrying amount (fair value at the reporting date)","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount (value in use)","es":""},"value":284000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Revaluation surplus of the warehouse","es":""},"value":10000,"unit":"EUR"}],"result":6000,"unit":"EUR","rationale":{"fr":"","en":"It is recognised in other comprehensive income up to the revaluation surplus of the warehouse, i.e. 10,000, and the excess of 16,000 − 10,000 = 6,000 is recognised in profit or loss (IAS 36, para. 61).","es":""}}],"references":["REF.IAS36.5","REF.IAS36.61"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000218","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000504","tested_point":"VG.IAS36.000504","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"revalued-asset-rule"},"references":["IAS 36 §5","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"A hotel of Miravel, measured under the revaluation model, has just been revalued to its fair value at the reporting date and is carried at {revalued_carrying_amount}. Its disposal would involve costs of disposal of {costs_of_disposal}. Falling occupancy reduces its value in use, which is its recoverable amount, to {recoverable_amount}. The balance of the revaluation surplus relating to this hotel is {revaluation_surplus}. What part of the loss goes to other comprehensive income, and what part to profit or loss?","es":""},"explanation":{"fr":"","en":"The hotel has just been revalued to fair value: the loss can only arise from costs of disposal that are not negligible and a value in use below the revalued amount (IAS 36, para. 5). Fair value less costs of disposal (750,000 − 45,000 = 705,000) is below the value in use of 712,000, which is the recoverable amount. Impairment loss: 750,000 − 712,000 = 38,000. The revaluation surplus of the hotel (85,000) is enough to absorb it: the 38,000 is recognised in other comprehensive income and nothing in profit or loss (IAS 36, para. 61). A revaluation surplus of 47,000 remains.","es":""},"common_error":{"fr":"","en":"Recognising the loss of 38,000 in profit or loss although the revaluation surplus covers it.","es":""},"format":"CALCULATION","placeholders":[{"id":"revalued_carrying_amount","value":"750000","unit":"EUR"},{"id":"costs_of_disposal","value":"45000","unit":"EUR"},{"id":"recoverable_amount","value":"712000","unit":"EUR"},{"id":"revaluation_surplus","value":"85000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Revalued carrying amount of the hotel (fair value at the reporting date)","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the hotel (value in use)","es":""},"value":"712000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the hotel","es":""},"value":"85000","unit":"EUR"}],"steps":[{"id":"LOSS_IN_OCI","label":{"fr":"","en":"Part in other comprehensive income","es":""},"answer":38000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_IN_OCI","meaning":{"fr":"","en":"Part in other comprehensive income","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued carrying amount of the hotel (fair value at the reporting date)","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the hotel (value in use)","es":""},"value":712000,"unit":"EUR"}],"result":38000,"unit":"EUR"}],"rationale":{"fr":"","en":"The hotel has just been revalued to fair value: the loss can only arise from costs of disposal that are not negligible and a value in use below the revalued amount (IAS 36, para. 5).","es":""},"references":["REF.IAS36.5","REF.IAS36.61"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000221","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000221","tested_point":"QST.IAS36.000221","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"revalued-asset-rule"},"references":["IAS 36 §5","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"Rocheval revalues its two buildings to fair value at each reporting date. The revaluation surplus of the North building is 70,000; that of the South building is 5,000. After the year-end revaluation, the IAS 36 test of the South building, whose costs of disposal are not negligible and whose value in use is below the revalued amount, shows an impairment loss of 20,000. The accountant proposes to charge the whole loss to the total of the revaluation surpluses (75,000), which covers it comfortably. Which treatment should be applied?","es":""},"explanation":{"fr":"","en":"As the South building is already revalued to fair value, the loss results from its costs of disposal and a value in use below the revalued amount (IAS 36, para. 5). The loss on a revalued asset is recognised in other comprehensive income up to the revaluation surplus of that same asset, the excess being recognised in profit or loss (IAS 36, para. 61). Only the surplus of the South building (5,000) is available: 5,000 in other comprehensive income and 20,000 − 5,000 = 15,000 in profit or loss. The surplus of the North building is unchanged.","es":""},"common_error":{"fr":"","en":"Charging the loss to the revaluation surplus of another asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept the proposal: recognise 20,000 in other comprehensive income against all of the entity's revaluation surpluses","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation surplus of the North building cannot absorb the loss of the South building.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise the whole loss of 20,000 in profit or loss, as the revaluation surplus need not be used","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation surplus of the South building must absorb the loss first, up to its balance.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise 5,000 in other comprehensive income and 15,000 in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise 15,000 in other comprehensive income and 5,000 in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts are reversed: the part in other comprehensive income is capped at 5,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000222","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000222","tested_point":"QST.IAS36.000222","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §5","IAS 36 §61","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"An office building of Belmonde is measured under the revaluation model and has just been revalued to its fair value at the reporting date; its revaluation surplus amounts to 90,000. The departure of its main tenant reduces its value in use and, as its costs of disposal are not negligible, its recoverable amount comes out 35,000 below its carrying amount. Out of prudence, the finance director wishes to recognise the loss in profit or loss. What is the correct effect?","es":""},"explanation":{"fr":"","en":"As the building is already revalued to fair value, a loss arises only from costs of disposal that are not negligible and a value in use below the revalued amount (IAS 36, para. 5). For a revalued asset, the loss is a revaluation decrease (IAS 36, para. 60). It is recognised in other comprehensive income up to the revaluation surplus of the same asset, only the excess going to profit or loss (IAS 36, para. 61). Here, the loss of 35,000 is below the surplus of 90,000: it is recognised entirely in other comprehensive income and the remaining surplus is 55,000.","es":""},"common_error":{"fr":"","en":"Recognising the whole loss in profit or loss despite an available revaluation surplus.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Decrease of 35,000 in other comprehensive income; no effect on profit or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Expense of 35,000 in profit or loss, the revaluation surplus remaining at 90,000 to absorb possible future losses","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence does not allow a departure from charging the revaluation surplus of the same asset.","es":""}},{"id":"C","text":{"fr":"","en":"No entry: the revaluation surplus of 90,000 covers the loss, which therefore need not be recognised","es":""},"correct":false,"feedback":{"fr":"","en":"The loss must be recognised: the revaluation surplus absorbs its amount, it does not make it disappear.","es":""}},{"id":"D","text":{"fr":"","en":"Decrease of 90,000 in other comprehensive income and a gain of 55,000 in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Only the amount of the loss (35,000) is charged; the revaluation surplus is not cleared.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000223","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.REVALUED_ASSETS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000504","tested_point":"VG.IAS36.000504","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"revalued-asset-rule"},"references":["IAS 36 §5","IAS 36 §61"],"exercise":{"prompt":{"fr":"","en":"The marina of Calanque Bleue measures its floating pontoons under the revaluation model. The main pontoon has just been revalued to its fair value at the reporting date, i.e. {revalued_carrying_amount}; its disposal would involve costs of disposal of {costs_of_disposal} and its value in use, which is its recoverable amount, is {recoverable_amount}. Its own revaluation surplus is {own_surplus}, while the harbour master's office, another revalued asset, carries a surplus of {other_asset_surplus}. Determine the part of the loss recognised in other comprehensive income and the part recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"As the pontoon is already revalued to fair value, the loss comes from costs of disposal that are not negligible and a value in use below the revalued amount (IAS 36, para. 5); fair value less costs of disposal (410,000 − 24,000 = 386,000) is below value in use. Impairment loss: 410,000 − 392,000 = 18,000. Only the revaluation surplus of the pontoon itself can absorb it (IAS 36, para. 61): 12,000 in other comprehensive income, and 18,000 − 12,000 = 6,000 in profit or loss. The surplus of 50,000 of the harbour master's office cannot be used.","es":""},"common_error":{"fr":"","en":"Using the surplus of the harbour master's office and recognising the 18,000 in other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"revalued_carrying_amount","value":"410000","unit":"EUR"},{"id":"costs_of_disposal","value":"24000","unit":"EUR"},{"id":"recoverable_amount","value":"392000","unit":"EUR"},{"id":"own_surplus","value":"12000","unit":"EUR"},{"id":"other_asset_surplus","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Revalued amount of the main pontoon (fair value at the reporting date)","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal","es":""},"value":"24000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the main pontoon (value in use)","es":""},"value":"392000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the main pontoon","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Revaluation surplus of the harbour master's office","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"LOSS_IN_OCI","label":{"fr":"","en":"Part in other comprehensive income","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Part in profit or loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount of the main pontoon (fair value at the reporting date)","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the main pontoon (value in use)","es":""},"value":392000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Revaluation surplus of the main pontoon","es":""},"value":12000,"unit":"EUR"}],"result":6000,"unit":"EUR","rationale":{"fr":"","en":"Only the revaluation surplus of the pontoon itself can absorb it (IAS 36, para. 61): 12,000 in other comprehensive income, and 18,000 − 12,000 = 6,000 in profit or loss.","es":""}}],"references":["REF.IAS36.5","REF.IAS36.61"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000224","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000224","tested_point":"QST.IAS36.000224","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"After an impairment loss has been recognised on a depreciable item of equipment, on what basis is the depreciation charge for subsequent periods computed?","es":""},"explanation":{"fr":"","en":"After an impairment loss, the depreciation charge for future periods is adjusted to allocate the revised carrying amount, less residual value, on a systematic basis over the remaining useful life (IAS 36, para. 63).","es":""},"common_error":{"fr":"","en":"Continuing to depreciate on the basis of original cost after the impairment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the original cost less residual value, spread over the total useful life initially estimated","es":""},"correct":false,"feedback":{"fr":"","en":"Continuing to depreciate on the basis of the original cost ignores the impairment loss recognised.","es":""}},{"id":"B","text":{"fr":"","en":"On the carrying amount after impairment, less residual value, over the remaining useful life","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On the carrying amount after impairment, without deducting the residual value","es":""},"correct":false,"feedback":{"fr":"","en":"The residual value is still deducted from the depreciable base.","es":""}},{"id":"D","text":{"fr":"","en":"No further charge is recognised, the impairment loss replacing future depreciation until the asset is derecognised","es":""},"correct":false,"feedback":{"fr":"","en":"The asset remains depreciable: only the basis of calculation changes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000225","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000506","tested_point":"VG.IAS36.000506","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, Ardéliane impaired an industrial boiler, now carried at {revised_carrying_amount}. Its residual value is estimated at {residual_value} and its remaining useful life at {remaining_useful_life}. It is depreciated on a straight-line basis. What is the depreciation charge for 20X2?","es":""},"explanation":{"fr":"","en":"The charge for the periods after the impairment allocates the revised carrying amount, less residual value, over the remaining useful life (IAS 36, para. 63): (90,000 − 10,000) / 4 = 20,000.","es":""},"common_error":{"fr":"","en":"Forgetting the residual value: 90,000 / 4 = 22,500.","es":""},"format":"CALCULATION","placeholders":[{"id":"revised_carrying_amount","value":"90000","unit":"EUR"},{"id":"residual_value","value":"10000","unit":"EUR"},{"id":"remaining_useful_life","value":"4","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Carrying amount after impairment","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Depreciation charge for 20X2","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Depreciation charge for 20X2","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount after impairment","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":10000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":4,"unit":"YEARS"}],"result":20000,"unit":"EUR","rationale":{"fr":"","en":"The charge for the periods after the impairment allocates the revised carrying amount, less residual value, over the remaining useful life (IAS 36, para. 63): (90,000 − 10,000) / 4 = 20,000.","es":""}}],"references":["REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000226","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000506","tested_point":"VG.IAS36.000506","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Quintessa acquired for {original_cost} a licence to use a cosmetics brand. After an impairment loss, the licence is carried at {revised_carrying_amount}; it has {remaining_useful_life} of use left and its residual value is {residual_value}. Compute the annual straight-line amortisation from the following period.","es":""},"explanation":{"fr":"","en":"The depreciable base becomes the revised carrying amount less residual value, spread over the remaining useful life (IAS 36, para. 63): (63,000 − 0) / 7 = 9,000. The acquisition cost of 120,000 no longer plays a part.","es":""},"common_error":{"fr":"","en":"Amortising the acquisition cost: 120,000 / 7 ≈ 17,143.","es":""},"format":"CALCULATION","placeholders":[{"id":"original_cost","value":"120000","unit":"EUR"},{"id":"revised_carrying_amount","value":"63000","unit":"EUR"},{"id":"residual_value","value":"0","unit":"EUR"},{"id":"remaining_useful_life","value":"7","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Acquisition cost of the licence","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount after impairment","es":""},"value":"63000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"0","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"7","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Annual amortisation","es":""},"answer":9000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Annual amortisation","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount after impairment","es":""},"value":63000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":0,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":7,"unit":"YEARS"}],"result":9000,"unit":"EUR","rationale":{"fr":"","en":"The depreciable base becomes the revised carrying amount less residual value, spread over the remaining useful life (IAS 36, para. 63): (63,000 − 0) / 7 = 9,000.","es":""}}],"references":["REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000227","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000506","tested_point":"VG.IAS36.000506","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §63","IAS 36 §59"],"exercise":{"prompt":{"fr":"","en":"A cable car at the Valmorine resort cost {cost}. It is depreciated on a straight-line basis over {useful_life}, with a residual value of {residual_value}. After {years_elapsed} of operation, a lasting fall in visitor numbers leads to an estimated recoverable amount of {recoverable_amount}; the residual value and the total useful life are unchanged. Compute the impairment loss, then the annual depreciation charge for the following years.","es":""},"explanation":{"fr":"","en":"Initial charge: (400,000 − 40,000) / 10 = 36,000 per year, i.e. 144,000 after 4 years; carrying amount: 400,000 − 144,000 = 256,000. Impairment loss: 256,000 − 196,000 = 60,000 (IAS 36, para. 59). The following charge allocates the revised carrying amount, less residual value, over the remaining life of 6 years (IAS 36, para. 63): (196,000 − 40,000) / 6 = 26,000.","es":""},"common_error":{"fr":"","en":"Keeping the initial charge of 36,000 after the impairment.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"400000","unit":"EUR"},{"id":"residual_value","value":"40000","unit":"EUR"},{"id":"useful_life","value":"10","unit":"YEARS"},{"id":"years_elapsed","value":"4","unit":"YEARS"},{"id":"recoverable_amount","value":"196000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the cable car","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Total useful life","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Period elapsed","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"196000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"REVISED_DEPRECIATION","label":{"fr":"","en":"Annual depreciation after impairment","es":""},"answer":26000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVISED_DEPRECIATION","meaning":{"fr":"","en":"Annual depreciation after impairment","es":""},"expression":"(a - b) / 6","variables":[{"symbol":"a","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":196000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":40000,"unit":"EUR"}],"result":26000,"unit":"EUR","rationale":{"fr":"","en":"The following charge allocates the revised carrying amount, less residual value, over the remaining life of 6 years (IAS 36, para. 63): (196,000 − 40,000) / 6 = 26,000.","es":""}}],"references":["REF.IAS36.63","REF.IAS36.59"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000230","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000230","tested_point":"QST.IAS36.000230","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Velloria recognises an impairment loss of 30,000 on an item of equipment, whose carrying amount falls from 100,000 to 70,000. The tax base of the equipment, set by tax rules, remains 100,000 (given). How are the deferred taxes relating to this equipment determined?","es":""},"explanation":{"fr":"","en":"When an impairment loss is recognised, any related deferred tax assets or liabilities are determined under IAS 12 by comparing the revised carrying amount of the asset with its tax base (IAS 36, para. 64). Here, the comparison is between 70,000 and 100,000; the deferred tax calculation itself falls under IAS 12.","es":""},"common_error":{"fr":"","en":"Considering that the impairment loss has no effect on deferred taxes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are not affected: the impairment loss is a purely accounting entry with no effect on deferred tax","es":""},"correct":false,"feedback":{"fr":"","en":"The loss changes the carrying amount, which changes its comparison with the tax base.","es":""}},{"id":"B","text":{"fr":"","en":"By comparing the original cost of the equipment with its tax base, the impairment loss being ignored for this purpose","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is made with the revised carrying amount, not with the original cost.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 36 sets the deferred tax directly by applying the tax rate to the amount of the loss, without reference to the tax base","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 refers to IAS 12; deferred tax results from comparing carrying amount and tax base.","es":""}},{"id":"D","text":{"fr":"","en":"Under IAS 12, by comparing the revised carrying amount of 70,000 with the tax base of 100,000","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000231","standard_id":"IAS36","concept_ids":["IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000231","tested_point":"QST.IAS36.000231","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Before impairment, a recycling unit of Ecomira had a carrying amount of {carrying_amount_before}. The entity recognises an impairment loss of {impairment_loss}. The tax base of the unit, which the loss does not change under the applicable tax rules (given), is {tax_base}. What is the revised carrying amount to be compared with the tax base, and by how much does the tax base now exceed it?","es":""},"explanation":{"fr":"","en":"Deferred taxes relating to the impairment loss are determined under IAS 12 by comparing the revised carrying amount with the tax base (IAS 36, para. 64). Revised carrying amount: 500,000 − 120,000 = 380,000. Before the loss, the carrying amount exceeded the tax base by 50,000; now the tax base exceeds it by 450,000 − 380,000 = 70,000. The resulting deferred tax calculation falls under IAS 12.","es":""},"common_error":{"fr":"","en":"Comparing the carrying amount before impairment with the tax base (difference of 50,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount_before","value":"500000","unit":"EUR"},{"id":"impairment_loss","value":"120000","unit":"EUR"},{"id":"tax_base","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount before impairment","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Impairment loss","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"REVISED_CARRYING_AMOUNT","label":{"fr":"","en":"Revised carrying amount","es":""},"answer":380000,"tolerance":0,"unit":"EUR"},{"id":"TAX_BASE_EXCESS","label":{"fr":"","en":"Excess of the tax base over the revised carrying amount","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVISED_CARRYING_AMOUNT","meaning":{"fr":"","en":"Revised carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before impairment","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Impairment loss","es":""},"value":120000,"unit":"EUR"}],"result":380000,"unit":"EUR"},{"step":"TAX_BASE_EXCESS","meaning":{"fr":"","en":"Excess of the tax base over the revised carrying amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax base","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised carrying amount","es":""},"value":380000,"unit":"EUR"}],"result":70000,"unit":"EUR"}],"references":["REF.IAS36.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000232","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000232","tested_point":"QST.IAS36.000232","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §66","IAS 36 §65"],"exercise":{"prompt":{"fr":"","en":"There is an indication that a packaging machine of Lavandor may be impaired. At what level must the recoverable amount be estimated?","es":""},"explanation":{"fr":"","en":"Paragraphs 66 to 108 deal in particular with identifying the CGU to which an asset belongs (IAS 36, para. 65). If there is an indication of impairment, the recoverable amount is estimated for the individual asset; if that is not possible, it is determined for the cash-generating unit to which the asset belongs (IAS 36, para. 66).","es":""},"common_error":{"fr":"","en":"Going straight to an aggregated level without examining the individual asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Directly at the level of the cash-generating unit, an estimate at the level of the machine never being required","es":""},"correct":false,"feedback":{"fr":"","en":"The individual asset level is examined first; the CGU comes in only if an individual estimate is impossible.","es":""}},{"id":"B","text":{"fr":"","en":"At the level of the entity as a whole, the only level at which cash flows are complete","es":""},"correct":false,"feedback":{"fr":"","en":"The entire entity is a far too broad level, which can mask a loss.","es":""}},{"id":"C","text":{"fr":"","en":"For the machine itself; failing that, for the CGU to which it belongs","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No estimate is required before the mandatory annual test at the year-end, whatever indication has been identified","es":""},"correct":false,"feedback":{"fr":"","en":"When there is an indication, the recoverable amount must be estimated without waiting.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000233","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000233","tested_point":"QST.IAS36.000233","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §68"],"exercise":{"prompt":{"fr":"","en":"What is the cash-generating unit of an asset?","es":""},"explanation":{"fr":"","en":"The CGU of an asset is the smallest group of assets, including that asset, that generates cash inflows largely independent of those from other assets; identifying it involves judgement and targets the lowest level of aggregation (IAS 36, para. 68).","es":""},"common_error":{"fr":"","en":"Using a unit that is too broad, masking a loss in one activity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The smallest group of assets including that asset whose cash inflows are largely independent","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The largest group of assets monitored by management, so as to offset differences in profitability between activities","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU targets the lowest level of aggregation, not the broadest.","es":""}},{"id":"C","text":{"fr":"","en":"The smallest group of assets whose cash outflows can be isolated in management accounts","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion relates to cash inflows, not outflows.","es":""}},{"id":"D","text":{"fr":"","en":"Any grouping of assets freely chosen by management, provided it is applied consistently","es":""},"correct":false,"feedback":{"fr":"","en":"The grouping involves judgement, but it is framed by the definition: it is not a free choice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000234","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000234","tested_point":"QST.IAS36.000234","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §67","IAS 36 §66"],"exercise":{"prompt":{"fr":"","en":"The quarry of Montrenard has a private access road that serves only the quarry. The road could be disposed of only for a low salvage value, far below the cash flows expected from its use, and it generates no cash inflows independent of those of the quarry. There is an indication that the road may be impaired. At what level is its recoverable amount determined?","es":""},"explanation":{"fr":"","en":"The recoverable amount is estimated for the individual asset or, failing that, for its CGU (IAS 36, para. 66). It cannot be determined for the asset alone when its value in use cannot be estimated to be close to its fair value less costs of disposal and it does not generate largely independent cash inflows (IAS 36, para. 67). Both conditions are met: the road is tested with the quarry.","es":""},"common_error":{"fr":"","en":"Testing the road alone at its salvage value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For the road alone, on the basis of its salvage value, since this is the only value specific to it","es":""},"correct":false,"feedback":{"fr":"","en":"The road's value in use cannot be estimated to be close to this salvage value: the recoverable amount cannot be determined for the road alone.","es":""}},{"id":"B","text":{"fr":"","en":"For the quarry as a whole, including the road","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"For all the quarries and plants of the group to which the company belongs","es":""},"correct":false,"feedback":{"fr":"","en":"This level is too broad: the smallest group with largely independent inflows is used.","es":""}},{"id":"D","text":{"fr":"","en":"No test is possible, as the road does not generate its own cash inflows","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of its own inflows leads to the CGU level; it does not exempt the asset from testing.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000235","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000235","tested_point":"QST.IAS36.000235","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §69"],"exercise":{"prompt":{"fr":"","en":"To assess whether the cash inflows of a group of assets are largely independent, which elements does the entity consider? (several answers)","es":""},"explanation":{"fr":"","en":"To assess the independence of cash inflows, the entity considers various factors, including how management monitors operations (product lines, businesses, sites, geographical areas) and how it makes decisions about continuing or disposing of assets and operations (IAS 36, para. 69).","es":""},"common_error":{"fr":"","en":"Choosing the grouping that minimises the impairment loss.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"How management monitors operations, for example by product line, business, site or geographical area","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of impairment loss that each possible grouping would produce","es":""},"correct":false,"feedback":{"fr":"","en":"The grouping is not chosen according to the loss it produces.","es":""}},{"id":"C","text":{"fr":"","en":"How management makes decisions about continuing or disposing of assets and operations","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only the legal structure of subsidiaries, regardless of how operations are organised","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form is not enough: cash inflows and the management of operations are analysed.","es":""}},{"id":"E","text":{"fr":"","en":"The wish to obtain the broadest possible group so as to smooth results","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU targets the lowest level of aggregation; smoothing results would mask a loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000236","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000236","tested_point":"QST.IAS36.000236","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §66","IAS 36 §67"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the level at which the recoverable amount is estimated are correct? (several answers)","es":""},"explanation":{"fr":"","en":"When there is an indication, the recoverable amount is estimated for the individual asset or, if that is impossible, for its CGU (IAS 36, para. 66). It cannot be determined for the asset alone when, cumulatively, its value in use cannot be estimated to be close to its fair value less costs of disposal and it does not generate largely independent cash inflows (IAS 36, para. 67).","es":""},"common_error":{"fr":"","en":"Believing that an asset without its own inflows escapes impairment testing.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When there is an indication, the recoverable amount is first estimated for the individual asset","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"If that estimate is impossible, the recoverable amount is determined for the CGU to which the asset belongs","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An asset without largely independent cash inflows is always tested within its CGU, even if its value in use can be estimated to be close to its fair value less costs of disposal","es":""},"correct":false,"feedback":{"fr":"","en":"The two conditions are cumulative: if value in use can be estimated to be close to fair value less costs of disposal, the asset can be measured on its own.","es":""}},{"id":"D","text":{"fr":"","en":"An asset whose use generates significant cash flows and which does not produce independent inflows is tested at the level of its CGU","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"When the recoverable amount of an individual asset cannot be estimated, no impairment test is required","es":""},"correct":false,"feedback":{"fr":"","en":"The impossibility of an individual estimate leads to the CGU; it does not remove the test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000237","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000237","tested_point":"QST.IAS36.000237","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §68","IAS 36 §69"],"exercise":{"prompt":{"fr":"","en":"Hôtelvia operates five hotels located in five different towns. Each hotel has its own customers, bookings and cash receipts; management analyses results hotel by hotel and has already sold one establishment on its own. There is an indication of impairment for the Port-Aurel hotel, whose rooms and furniture do not generate independent cash inflows. Which CGU should be used?","es":""},"explanation":{"fr":"","en":"The CGU is the smallest group of assets, including the asset, whose cash inflows are largely independent, at the lowest level of aggregation (IAS 36, para. 68). Monitoring results hotel by hotel and making disposal decisions hotel by hotel confirm this independence (IAS 36, para. 69): the Port-Aurel hotel is a CGU.","es":""},"common_error":{"fr":"","en":"Using a unit that is too broad, masking the loss of one hotel.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Each room of the Port-Aurel hotel, since it is let separately","es":""},"correct":false,"feedback":{"fr":"","en":"A room's inflows depend on the operation of the whole hotel: they are not largely independent.","es":""}},{"id":"B","text":{"fr":"","en":"The Port-Aurel hotel, with all its assets","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The five hotels together, since they share the same brand and the same online booking platform","es":""},"correct":false,"feedback":{"fr":"","en":"A shared brand does not make the hotels' inflows interdependent; this grouping would mask a loss.","es":""}},{"id":"D","text":{"fr":"","en":"The entity as a whole, the only legal entity of the group and the only level at which accounts are published","es":""},"correct":false,"feedback":{"fr":"","en":"The entire entity is too broad a level and would mask the loss of the Port-Aurel hotel.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000238","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000238","tested_point":"QST.IAS36.000238","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §68"],"exercise":{"prompt":{"fr":"","en":"Under a concession, Navilia operates four sea routes to islands. The concession requires it to operate all four routes: it cannot abandon any of them. The revenue of each route is separately identifiable and the route to the island of Kerbian is loss-making. Which CGU should be used to test the vessel assigned to this route?","es":""},"explanation":{"fr":"","en":"The CGU is the smallest group of assets, including the asset, whose cash inflows are largely independent; IAS 36 illustrates this with a transport company required to operate several routes, which together form the CGU (IAS 36, para. 68). As Navilia cannot give up any route, the four routes together form the CGU, even though the revenue of each is identifiable.","es":""},"common_error":{"fr":"","en":"Confusing separately identifiable revenue with largely independent inflows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The vessel on the Kerbian route, as its revenue is separately identifiable in management accounts","es":""},"correct":false,"feedback":{"fr":"","en":"Identifiable revenue is not enough: the route cannot be abandoned on its own, so its inflows are not largely independent of the other routes.","es":""}},{"id":"B","text":{"fr":"","en":"The entity as a whole, including its shipyard activities unrelated to the concession","es":""},"correct":false,"feedback":{"fr":"","en":"This level is too broad: the shipyard generates inflows independent of the concession.","es":""}},{"id":"C","text":{"fr":"","en":"Each crossing taken individually, since each ticket is sold separately","es":""},"correct":false,"feedback":{"fr":"","en":"A crossing is not a group of assets generating largely independent inflows.","es":""}},{"id":"D","text":{"fr":"","en":"The four routes of the concession together","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000239","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000239","tested_point":"QST.IAS36.000239","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §69","IAS 36 §68"],"exercise":{"prompt":{"fr":"","en":"Bricolis operates twelve DIY stores in different towns. Each store has its own customers and cash receipts; purchasing is negotiated by a common buying office. Management accounts present an income statement for each store, and the executive committee decides on closures and extensions store by store. The finance director argues that a single CGU should cover the chain, since purchasing is centralised. Which position should be adopted?","es":""},"explanation":{"fr":"","en":"The CGU is the smallest group of assets whose cash inflows are largely independent, at the lowest level of aggregation (IAS 36, para. 68). Monitoring performance and making closure decisions store by store are factors confirming this independence (IAS 36, para. 69). Each store generates its own receipts; centralised purchasing concerns outflows, not cash inflows. Each store is therefore a CGU.","es":""},"common_error":{"fr":"","en":"Using the whole chain, which masks the loss of one store.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A single CGU for the chain, centralised purchasing making the twelve stores economically inseparable","es":""},"correct":false,"feedback":{"fr":"","en":"Centralised purchasing does not make the stores' cash inflows interdependent; this level would mask a loss.","es":""}},{"id":"B","text":{"fr":"","en":"One CGU per department of each store, each department having its own revenue in the till system","es":""},"correct":false,"feedback":{"fr":"","en":"A department's inflows depend on the operation of the whole store: they are not largely independent.","es":""}},{"id":"C","text":{"fr":"","en":"Each store is a CGU","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"One CGU per region, grouping profitable and loss-making stores so as to present a balanced regional result","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping stores to balance results is contrary to seeking the lowest level.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000240","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000240","tested_point":"QST.IAS36.000240","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §67","IAS 36 §66"],"exercise":{"prompt":{"fr":"","en":"A laser cutter of Pradelle has been idle for several months and will remain so; the cash flows expected from its use are negligible. Its value in use can therefore be estimated to be close to its fair value less costs of disposal, measurable from dealer prices (given). It belongs to a workshop whose cash inflows are largely independent. There is an indication of impairment. At what level is the recoverable amount of the cutter estimated?","es":""},"explanation":{"fr":"","en":"The recoverable amount is estimated for the individual asset when possible (IAS 36, para. 66). It cannot be determined for the asset alone only if two conditions are met: its value in use cannot be estimated to be close to its fair value less costs of disposal, and it does not generate largely independent inflows (IAS 36, para. 67). Here, the first condition is not met: the recoverable amount is estimated for the cutter itself.","es":""},"common_error":{"fr":"","en":"Systematically sending an asset without its own cash inflows to the CGU level.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the workshop, because the cutter does not by itself generate largely independent cash inflows","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of independent inflows is not enough: value in use must also be impossible to estimate close to fair value less costs of disposal.","es":""}},{"id":"B","text":{"fr":"","en":"At the level of the cutter itself","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No estimate is needed as long as the cutter is idle","es":""},"correct":false,"feedback":{"fr":"","en":"When there is an indication, the recoverable amount is estimated whether or not the asset is in use.","es":""}},{"id":"D","text":{"fr":"","en":"At the level of the entity as a whole, the cutter no longer taking part in any identifiable operating cash flow","es":""},"correct":false,"feedback":{"fr":"","en":"The entire entity is too broad a level, and the asset can here be measured on its own.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000241","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000241","tested_point":"QST.IAS36.000241","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §68","IAS 36 §69"],"exercise":{"prompt":{"fr":"","en":"Aldara, a single legal entity, carries on three activities: dairy, road haulage and printing. Each activity has its own customers; management monitors them separately and is considering selling the printing business. For impairment testing, Aldara uses the entire entity as a CGU: the printing loss is thus offset by the profitability of the dairy. What do you think of this choice?","es":""},"explanation":{"fr":"","en":"The CGU is the smallest group of assets whose cash inflows are largely independent, at the lowest level of aggregation (IAS 36, para. 68). Separate monitoring of the activities and the consideration of a sale of the printing business are factors confirming this independence (IAS 36, para. 69). Using the entire entity masks the printing loss: the test must be carried out at most at the level of each activity, or lower if the analysis supports it.","es":""},"common_error":{"fr":"","en":"Using a unit that is too broad (entire entity), masking the loss of one activity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is correct, because a single legal entity can have only one CGU as long as its accounts are prepared on an overall basis","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU split does not depend on legal form but on the independence of cash inflows.","es":""}},{"id":"B","text":{"fr":"","en":"It is contrary to IAS 36: the CGU must be sought at the lowest level, at most at the level of each activity","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is correct provided that the total recoverable amount of the entity exceeds its total carrying amount, which proves there is no loss","es":""},"correct":false,"feedback":{"fr":"","en":"Overall offsetting precisely masks the printing loss.","es":""}},{"id":"D","text":{"fr":"","en":"Printing should be grouped with haulage, two activities exposed to the same risks, and the dairy tested separately","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping by risk does not match the criterion of largely independent cash inflows.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000244","standard_id":"IAS36","concept_ids":["IAS36.CGU.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000244","tested_point":"QST.IAS36.000244","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"definition-rule"},"references":["IAS 36 §68","IAS 36 §66"],"exercise":{"prompt":{"fr":"","en":"The audit committee of Ostréa is reviewing the method for identifying CGUs. Which of the following statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The CGU of an asset is the smallest group of assets, including that asset, whose cash inflows are largely independent; identifying it involves judgement and targets the lowest level of aggregation (IAS 36, para. 68). The CGU is used only if the recoverable amount of the individual asset cannot be estimated (IAS 36, para. 66).","es":""},"common_error":{"fr":"","en":"Using a unit that is too broad, masking a loss in one activity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A CGU necessarily corresponds to a legal entity or a subsidiary","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is the independence of cash inflows, not legal form.","es":""}},{"id":"B","text":{"fr":"","en":"Identifying the CGU of an asset involves judgement","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The CGU of an asset always includes that asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity may choose the level of grouping that minimises the impairment loss","es":""},"correct":false,"feedback":{"fr":"","en":"The level is not chosen according to its effect: the lowest level of aggregation is used.","es":""}},{"id":"E","text":{"fr":"","en":"If the recoverable amount of an individual asset can be estimated, there is no need to use its CGU to test it","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000245","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000245","tested_point":"QST.IAS36.000245","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §70","IAS 36 §71"],"exercise":{"prompt":{"fr":"","en":"The Bauxor group operates an alumina mine whose entire output is delivered to its own smelter. Alumina is nevertheless traded on an active market. How should the mine be treated when identifying cash-generating units (CGUs)?","es":""},"explanation":{"fr":"","en":"As soon as an active market exists for the output of an asset or group of assets, that asset or group is a CGU, even if some or all of the output is used internally (IAS 36, para. 70). What matters is the ability to sell the output on that market, not actual sales to third parties (IAS 36, para. 71). Bauxor's mine is therefore a separate CGU.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It cannot form a separate CGU, because it sells nothing to customers outside the group.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of external sales does not prevent a CGU from being identified when the output has an active market.","es":""}},{"id":"B","text":{"fr":"","en":"It forms a separate CGU, since its output could be sold on an active market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It becomes a separate CGU only if at least half of its output is sold to third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 sets no external sales threshold: some or all of the output may be used internally.","es":""}},{"id":"D","text":{"fr":"","en":"It must be combined with the smelter, because internal transfer prices are set by group management and do not reflect any market.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal transfer prices do not determine the boundary of the CGU; they are replaced by estimates of arm's length prices in the projections.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000246","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000246","tested_point":"QST.IAS36.000246","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"The subsidiary Verrania sells its entire output of flat glass to another unit of the group, at an internal transfer price below the prices on the active market for this glass. To estimate the value in use of Verrania's CGU, which selling prices does the entity use in the cash flow projections?","es":""},"explanation":{"fr":"","en":"When the cash flows of a CGU whose output has an active market are affected by internal transfer prices, the entity uses management's best estimate of the future prices that could be achieved in arm's length transactions (IAS 36, para. 70). Invoiced internal prices, an arbitrary average or a price frozen at the reporting date do not meet this requirement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The internal transfer prices actually invoiced, since they correspond to the unit's actual cash receipts.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal prices are precisely what must be replaced: they do not reflect arm's length conditions.","es":""}},{"id":"B","text":{"fr":"","en":"Management's best estimate of future arm's length prices.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The market price observed at the reporting date, held unchanged over the whole projection period, whatever the expected developments.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard refers to an estimate of future prices; freezing the reporting-date price without considering expected developments is not that best estimate.","es":""}},{"id":"D","text":{"fr":"","en":"The average of the internal transfer price and the market price, so as to neutralise the effect on the group.","es":""},"correct":false,"feedback":{"fr":"","en":"An average of internal and market prices has no basis: only the estimate of arm's length prices is used.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000247","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000247","tested_point":"QST.IAS36.000247","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §70","IAS 36 §71"],"exercise":{"prompt":{"fr":"","en":"The Alpilait cooperative collects and pasteurises milk in a dedicated plant. The plant sells 40% of the pasteurised milk to third-party manufacturers, on an active market, and delivers the remaining 60% to the group's cheese factory. The financial controller proposes to treat the plant as a CGU only for the portion sold externally and to attach the portion delivered internally to the cheese factory. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"The plant's output has an active market: the plant is therefore a CGU, even if part of its output is used internally (IAS 36, para. 70). Intermediate output consumed by another unit does not prevent a separate CGU from being identified, provided it could be sold on an active market (IAS 36, para. 71). The cash flows relating to the portion delivered internally are based on the best estimate of future arm's length prices, not on internal prices.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plant forms a single CGU for its entire output, including the portion delivered internally, measured at estimated future arm's length prices.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The plant is split in two: one CGU for external sales, with the internal portion attached to the cheese factory's CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"A plant is not split according to where its output goes: it is all of its assets that generate the cash flows.","es":""}},{"id":"C","text":{"fr":"","en":"The plant is not a CGU, because most of its output is consumed by the group's cheese factory.","es":""},"correct":false,"feedback":{"fr":"","en":"The portion consumed internally, even a majority, does not prevent a CGU from being identified when the output has an active market.","es":""}},{"id":"D","text":{"fr":"","en":"The plant forms a single CGU, but the portion delivered to the cheese factory stays measured at internal transfer prices, which are the only cash flows the plant actually receives.","es":""},"correct":false,"feedback":{"fr":"","en":"The boundary is right, but internal prices must be replaced by the best estimate of future arm's length prices.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000248","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000248","tested_point":"QST.IAS36.000248","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"At Solvaro, the Synthesis CGU produces a solvent, traded on an active market, which it sells entirely to the group's Paints CGU at an internal price of 130 per tonne. Management estimates that future arm's length prices for the solvent will be around 100 per tonne. The Paints CGU shows indications of impairment and both values in use must be estimated. Which approach complies with IAS 36?","es":""},"explanation":{"fr":"","en":"When internal transfer prices affect cash flows, the entity uses management's best estimate of future arm's length prices, both for the cash inflows of the CGU whose output has an active market and for the cash outflows of the other CGUs affected by those internal prices (IAS 36, para. 70). The adjustment is symmetrical: 100 per tonne for Synthesis as well as for Paints. Adjusting only one side would leave a value in use distorted by internal prices.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use 100 per tonne for the Paints cash outflows, but keep 130 per tonne for the Synthesis cash inflows.","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment also applies to the Synthesis CGU's inflows: adjusting one side only is not enough.","es":""}},{"id":"B","text":{"fr":"","en":"Use 100 per tonne for the Synthesis cash inflows, but keep 130 per tonne for the Paints cash outflows.","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment also applies to the outflows of the Paints CGU, which are affected by the same internal price.","es":""}},{"id":"C","text":{"fr":"","en":"Keep 130 per tonne in both CGUs, since internal flows are eliminated on consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"Elimination on consolidation does not remove the need to replace internal prices in each CGU's value in use.","es":""}},{"id":"D","text":{"fr":"","en":"Use the estimate of 100 per tonne both for the Synthesis cash inflows and for the Paints cash outflows.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000250","standard_id":"IAS36","concept_ids":["IAS36.CGU.ACTIVE_MARKET_OUTPUT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000250","tested_point":"QST.IAS36.000250","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"active-market-rule"},"references":["IAS 36 §71","IAS 36 §70"],"exercise":{"prompt":{"fr":"","en":"The Electrovia group's power plant supplies, through a direct line, all the needs of the group's neighbouring aluminium smelter. The plant is connected to the grid, and electricity is traded on an active wholesale market. The auditor asks which element is decisive in concluding that the plant is a separate CGU. Which one?","es":""},"explanation":{"fr":"","en":"A group of assets whose output is used internally forms a separate CGU as long as the entity could sell that output on an active market (IAS 36, para. 71). Actual sales to third parties, a separate legal structure or internal prices aligned with the market are not the criterion: what matters is the existence of the active market for the output (IAS 36, para. 70).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Evidence that the plant actually sold electricity to third parties during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Actual sales are not required: the output may be entirely used internally.","es":""}},{"id":"B","text":{"fr":"","en":"A demonstration that its output could be sold on an active market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The fact that the plant is housed in a legal entity separate from the smelter.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form does not determine CGUs: the analysis focuses on the assets and their cash flows.","es":""}},{"id":"D","text":{"fr":"","en":"The alignment of internal electricity transfer prices with wholesale market prices during the past year.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of internal prices does not underpin the identification of the CGU; in any case it is replaced by an estimate of arm's length prices in the projections.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000251","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000251","tested_point":"QST.IAS36.000251","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? From one year to the next, an entity identifies its cash-generating units for the same asset or types of assets consistently, unless a change is justified.","es":""},"explanation":{"fr":"","en":"True. CGUs are identified consistently from period to period; a change is possible only if it is justified (IAS 36, para. 72). This consistency ensures that impairment tests remain comparable over time.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000252","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000252","tested_point":"QST.IAS36.000252","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? An entity may freely redraw its CGUs at each reporting date, choosing the grouping of assets that avoids recognising an impairment loss.","es":""},"explanation":{"fr":"","en":"False. CGUs are identified consistently from period to period unless a change is justified (IAS 36, para. 72). Redrawing units in order to avoid an impairment loss is not a justified change.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000253","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000253","tested_point":"QST.IAS36.000253","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §73","IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? When an asset belongs to a CGU different from the one used in previous periods and an impairment loss is recognised for that CGU, the entity provides the information about the CGU required by paragraph 130 of IAS 36.","es":""},"explanation":{"fr":"","en":"True. If an asset now belongs to a different CGU than in previous periods, or if the types of assets aggregated in the CGU have changed, paragraph 130 requires information about that CGU when an impairment loss is recognised or reversed for it (IAS 36, para. 73). The change, permitted if justified (IAS 36, para. 72), is thus made visible to users.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000254","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000254","tested_point":"QST.IAS36.000254","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"True or false? Once settled, an entity's identification of CGUs can never be changed, even when a genuine reorganisation of its operations justifies it.","es":""},"explanation":{"fr":"","en":"False. Consistent identification of CGUs is not absolute: it applies unless a change is justified (IAS 36, para. 72). A genuine reorganisation of operations may justify a new identification.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000255","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000255","tested_point":"QST.IAS36.000255","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"Which principle does IAS 36 apply to the identification of CGUs from one period to the next?","es":""},"explanation":{"fr":"","en":"CGUs are identified consistently from period to period for the same asset or types of assets, unless a change is justified (IAS 36, para. 72). IAS 36 requires neither a systematic review nor a minimum period, and does not allow opportunistic grouping.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A full and compulsory review of CGUs at each reporting date, regardless of any change in operations.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not require identification to be redone at each reporting date: the rule is consistency.","es":""}},{"id":"B","text":{"fr":"","en":"Free choice, each year, of the grouping most favourable to the entity's profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The grouping is not an annual choice driven by profit: it is consistent unless a change is justified.","es":""}},{"id":"C","text":{"fr":"","en":"Consistent identification, unless a change is justified.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A grouping frozen for a minimum of five years, then freely revisable.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 sets no minimum period: a change is possible at any time if justified, and never without justification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000256","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000256","tested_point":"QST.IAS36.000256","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §73"],"exercise":{"prompt":{"fr":"","en":"The types of assets aggregated in the South Logistics CGU of Transvalis changed during the year. Under IAS 36, in which case does this change lead to providing the information about the CGU required by paragraph 130?","es":""},"explanation":{"fr":"","en":"When the types of assets aggregated in a CGU have changed, or an asset belongs to a different CGU than in previous periods, paragraph 130 requires information about the CGU if an impairment loss is recognised or reversed for it (IAS 36, para. 73). Neither shareholder approval nor a change in the number of CGUs is a condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only when the change has been approved by the company's general meeting of shareholders.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not link this information to a decision of the general meeting.","es":""}},{"id":"B","text":{"fr":"","en":"When an impairment loss is recognised or reversed for that CGU.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Never: the composition of CGUs is a matter of internal management and calls for no information.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in composition is not without consequence: IAS 36 requires information when the CGU has a loss or a reversal.","es":""}},{"id":"D","text":{"fr":"","en":"Only when the change reduces the total number of CGUs identified by the company.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of CGUs is not the criterion: it is the recognition of a loss or reversal for the modified CGU.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000257","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000257","tested_point":"QST.IAS36.000257","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72"],"exercise":{"prompt":{"fr":"","en":"For several years, the Marivo hotel group has treated each of its hotels as a CGU. This year, the Brevanne hotel has a recoverable amount below its carrying amount. With no change in the operation, management or marketing of the hotels, management proposes to combine Brevanne with two highly profitable hotels in the same region so that the combination shows no loss. What is the appropriate conclusion?","es":""},"explanation":{"fr":"","en":"CGUs are identified consistently from period to period unless a change is justified (IAS 36, para. 72). Nothing has changed in the operation of the hotels: the only purpose of the combination is to absorb Brevanne's loss in the headroom of other hotels. This is not a justified change; each hotel remains a CGU and Brevanne is tested at that level.","es":""},"common_error":{"fr":"","en":"Believing that disclosure in the notes is enough to validate a change in CGUs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The combination is acceptable, because it reflects a more prudent regional view of the hotel portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The combination is not more prudent: it hides a loss and rests on no real change.","es":""}},{"id":"B","text":{"fr":"","en":"The combination is acceptable provided the entity describes it in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure in the notes does not make an unjustified change acceptable.","es":""}},{"id":"C","text":{"fr":"","en":"The combination is acceptable for this year only, after which the entity returns to the previous grouping.","es":""},"correct":false,"feedback":{"fr":"","en":"A temporary, opportunistic combination directly contradicts the consistency of CGUs.","es":""}},{"id":"D","text":{"fr":"","en":"The combination is rejected: without a justified change, each hotel remains a CGU.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000258","standard_id":"IAS36","concept_ids":["IAS36.CGU.CONSISTENCY"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000258","tested_point":"QST.IAS36.000258","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000010","section_id":"consistency-rule"},"references":["IAS 36 §72","IAS 36 §73"],"exercise":{"prompt":{"fr":"","en":"Textora operated two plants, each treated as a CGU. During the year, it genuinely merged the two sites: a single production line, a common customer base and integrated teams. The new combined operation is now tested as a single CGU, for which an impairment loss is recognised at the reporting date. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"A genuine reorganisation may justify a new identification of CGUs, as consistency applies unless a change is justified (IAS 36, para. 72). Since the assets aggregated in the CGU have changed and an impairment loss is recognised for that CGU, Textora provides the information about the CGU required by paragraph 130 (IAS 36, para. 73).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The change is justified by the reorganisation; Textora provides the information about the CGU required by paragraph 130, reporting the change in aggregation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The change is prohibited: Textora must continue to test two CGUs, even though the sites no longer operate separately.","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency does not prohibit a change justified by a genuine reorganisation of operations.","es":""}},{"id":"C","text":{"fr":"","en":"The change is justified and requires no specific information, since the impairment loss is recognised in the normal way.","es":""},"correct":false,"feedback":{"fr":"","en":"The change is justified, but since a loss is recognised for the modified CGU, the paragraph 130 information is required.","es":""}},{"id":"D","text":{"fr":"","en":"The change is permitted only if Textora restates the impairment tests of previous years under the new grouping.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not make the change conditional on restating past tests; it requires information about the CGU.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000259","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000601","tested_point":"VG.IAS36.000601","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §76","IAS 36 §75"],"exercise":{"prompt":{"fr":"","en":"Ferrolia is testing the Rolling Mill CGU. The cash flows used for its recoverable amount come from rolling machines ({machinery}), the workshop building ({building}) and a process patent used by the workshop ({patent}). The workshop's trade payables amount to {trade_payables}; the recoverable amount was determined without considering them. A vehicle used exclusively by another unit ({other_unit_vehicle}) is recorded in the site's accounts. What is the carrying amount of the Rolling Mill CGU to be compared with its recoverable amount?","es":""},"explanation":{"fr":"","en":"The carrying amount of the CGU includes the assets directly attributable or reasonably allocable that generate the cash flows used, and excludes recognised liabilities when the recoverable amount can be determined without them (IAS 36, para. 76). It is determined consistently with the recoverable amount (IAS 36, para. 75): 420,000 + 260,000 + 90,000 = 770,000. Trade payables, not considered in the recoverable amount, are excluded, as is the vehicle, which does not generate the CGU's cash flows.","es":""},"common_error":{"fr":"","en":"Deducting trade payables (700,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"machinery","value":"420000","unit":"EUR"},{"id":"building","value":"260000","unit":"EUR"},{"id":"patent","value":"90000","unit":"EUR"},{"id":"trade_payables","value":"70000","unit":"EUR"},{"id":"other_unit_vehicle","value":"35000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Rolling machines","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Workshop building","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Process patent","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Workshop trade payables","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Vehicle of another unit","es":""},"value":"35000","unit":"EUR"}],"steps":[{"id":"CGU_CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the CGU","es":""},"answer":770000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CGU_CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount of the CGU","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rolling machines","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Workshop building","es":""},"value":260000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Process patent","es":""},"value":90000,"unit":"EUR"}],"result":770000,"unit":"EUR","rationale":{"fr":"","en":"It is determined consistently with the recoverable amount (IAS 36, para. 75): 420,000 + 260,000 + 90,000 = 770,000.","es":""}}],"references":["REF.IAS36.76","REF.IAS36.75"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000260","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000601","tested_point":"VG.IAS36.000601","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §76","IAS 36 §75"],"exercise":{"prompt":{"fr":"","en":"The Calanque hotel, operated by Azurhotels, forms a CGU. Its value in use is based on the revenue generated by the hotel building ({hotel_building}), the room furniture ({furniture}) and dedicated booking software ({booking_software}). The hotel has debts to its suppliers ({supplier_debts}) and a bank loan that financed the works ({bank_loan}); none of these debts is needed to determine the recoverable amount. Calculate the carrying amount of the CGU.","es":""},"explanation":{"fr":"","en":"The assets that generate the hotel's cash flows are included; recognised liabilities are excluded, since the recoverable amount can be determined without them (IAS 36, para. 76). This approach ensures consistency with the way the recoverable amount is calculated (IAS 36, para. 75): 1,350,000 + 180,000 + 45,000 = 1,575,000.","es":""},"common_error":{"fr":"","en":"Deducting the bank loan and the trade payables (880,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"hotel_building","value":"1350000","unit":"EUR"},{"id":"furniture","value":"180000","unit":"EUR"},{"id":"booking_software","value":"45000","unit":"EUR"},{"id":"supplier_debts","value":"95000","unit":"EUR"},{"id":"bank_loan","value":"600000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Hotel building","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Room furniture","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Booking software","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Bank loan","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"CGU_CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount of the CGU","es":""},"answer":1575000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CGU_CARRYING_AMOUNT","meaning":{"fr":"","en":"Carrying amount of the CGU","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Hotel building","es":""},"value":1350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Room furniture","es":""},"value":180000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Booking software","es":""},"value":45000,"unit":"EUR"}],"result":1575000,"unit":"EUR","rationale":{"fr":"","en":"This approach ensures consistency with the way the recoverable amount is calculated (IAS 36, para. 75): 1,350,000 + 180,000 + 45,000 = 1,575,000.","es":""}}],"references":["REF.IAS36.76","REF.IAS36.75"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000261","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000602","tested_point":"VG.IAS36.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §78","IAS 36 §74","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The Pierrelune quarry forms a CGU. Its assets have a carrying amount of {assets_carrying_amount}, and a provision for site restoration is recognised for {restoration_provision}. Any buyer of the quarry would have to assume this obligation: the fair value less costs of disposal of the whole, obligation included, is estimated at {fvlcd_with_liability}. Value in use, calculated without considering restoration outflows, is {viu_before_restoration}. Determine the carrying amount to be compared, the recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"Since the buyer would have to assume the obligation, the carrying amount of the provision is deducted both from the carrying amount of the CGU and from its value in use (IAS 36, para. 78). Carrying amount to be compared: 2,400,000 − 500,000 = 1,900,000. Adjusted value in use: 2,300,000 − 500,000 = 1,800,000. The recoverable amount is the higher of 1,750,000 and 1,800,000, i.e. 1,800,000 (IAS 36, para. 74). It is below the carrying amount: an impairment loss of 1,900,000 − 1,800,000 = 100,000 is recognised for the CGU (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Comparing the fair value net of the obligation with the gross carrying amount of 2,400,000 (loss of 650,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"assets_carrying_amount","value":"2400000","unit":"EUR"},{"id":"restoration_provision","value":"500000","unit":"EUR"},{"id":"fvlcd_with_liability","value":"1750000","unit":"EUR"},{"id":"viu_before_restoration","value":"2300000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the CGU's assets","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Restoration provision","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal (obligation assumed)","es":""},"value":"1750000","unit":"EUR"},{"label":{"fr":"","en":"Value in use before restoration outflows","es":""},"value":"2300000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_COMPARED","label":{"fr":"","en":"Carrying amount to be compared","es":""},"answer":1900000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":1800000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_COMPARED","meaning":{"fr":"","en":"Carrying amount to be compared","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU's assets","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restoration provision","es":""},"value":500000,"unit":"EUR"}],"result":1900000,"unit":"EUR"},{"step":"RECOVERABLE_AMOUNT","meaning":{"fr":"","en":"Recoverable amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use before restoration outflows","es":""},"value":2300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restoration provision","es":""},"value":500000,"unit":"EUR"}],"result":1800000,"unit":"EUR"},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount to be compared","es":""},"value":1900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":1800000,"unit":"EUR"}],"result":100000,"unit":"EUR","rationale":{"fr":"","en":"It is below the carrying amount: an impairment loss of 1,900,000 − 1,800,000 = 100,000 is recognised for the CGU (IAS 36, para. 104).","es":""}}],"references":["REF.IAS36.78","REF.IAS36.74","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000262","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000602","tested_point":"VG.IAS36.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §78","IAS 36 §74","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Nordmaris operates an offshore gas platform, which is a CGU whose assets have a carrying amount of {platform_assets}. It has recognised a decommissioning provision of {decommissioning_provision}, an obligation that a buyer of the platform would have to assume. The price a buyer would pay for the platform and this obligation, less costs of disposal, is estimated at {fvlcd_buyer_assumes}. Value in use projections, prepared excluding decommissioning outflows, give {viu_excluding_decommissioning}. What are the carrying amount to be used for the test, the recoverable amount and any impairment loss?","es":""},"explanation":{"fr":"","en":"Since the buyer would have to assume the obligation, the provision is deducted from the carrying amount of the CGU as well as from its value in use (IAS 36, para. 78). Carrying amount used: 5,200,000 − 1,100,000 = 4,100,000. Adjusted value in use: 5,000,000 − 1,100,000 = 3,900,000. Recoverable amount: the higher of 4,250,000 and 3,900,000, i.e. 4,250,000 (IAS 36, para. 74). As 4,250,000 exceeds 4,100,000, no impairment loss is recognised (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Comparing 4,250,000 with the gross carrying amount of 5,200,000 and recognising a loss of 950,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"platform_assets","value":"5200000","unit":"EUR"},{"id":"decommissioning_provision","value":"1100000","unit":"EUR"},{"id":"fvlcd_buyer_assumes","value":"4250000","unit":"EUR"},{"id":"viu_excluding_decommissioning","value":"5000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the platform's assets","es":""},"value":"5200000","unit":"EUR"},{"label":{"fr":"","en":"Decommissioning provision","es":""},"value":"1100000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal (obligation assumed by the buyer)","es":""},"value":"4250000","unit":"EUR"},{"label":{"fr":"","en":"Value in use excluding decommissioning","es":""},"value":"5000000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_COMPARED","label":{"fr":"","en":"Carrying amount used for the test","es":""},"answer":4100000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":4250000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_COMPARED","meaning":{"fr":"","en":"Carrying amount used for the test","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the platform's assets","es":""},"value":5200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Decommissioning provision","es":""},"value":1100000,"unit":"EUR"}],"result":4100000,"unit":"EUR"}],"rationale":{"fr":"","en":"Since the buyer would have to assume the obligation, the provision is deducted from the carrying amount of the CGU as well as from its value in use (IAS 36, para. 78).","es":""},"references":["REF.IAS36.78","REF.IAS36.74","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000263","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000602","tested_point":"VG.IAS36.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §78","IAS 36 §74","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The private operator Ecodepots runs a waste landfill site, which is a CGU. The carrying amount of the facilities is {landfill_assets}. A provision for closure and rehabilitation of the site is recognised for {site_closure_provision}; a sale of the site would transfer this obligation to the purchaser. A purchaser would pay, for the site and the obligation, a fair value less costs of disposal of {fvlcd_including_obligation}. Value in use calculated before any closure outflows amounts to {viu_gross}. Calculate the carrying amount to be compared, the recoverable amount and the impairment loss.","es":""},"explanation":{"fr":"","en":"Since a sale would transfer the obligation to the purchaser, the provision is deducted from the carrying amount of the CGU and from its value in use, so that like is compared with like (IAS 36, para. 78). Carrying amount to be compared: 860,000 − 240,000 = 620,000. Adjusted value in use: 830,000 − 240,000 = 590,000. Recoverable amount: the higher of 560,000 and 590,000, i.e. 590,000 (IAS 36, para. 74). Impairment loss: 620,000 − 590,000 = 30,000 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Using the fair value of 560,000 as the recoverable amount (loss of 60,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"landfill_assets","value":"860000","unit":"EUR"},{"id":"site_closure_provision","value":"240000","unit":"EUR"},{"id":"fvlcd_including_obligation","value":"560000","unit":"EUR"},{"id":"viu_gross","value":"830000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the facilities","es":""},"value":"860000","unit":"EUR"},{"label":{"fr":"","en":"Site closure provision","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal, obligation included","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Value in use before closure outflows","es":""},"value":"830000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_COMPARED","label":{"fr":"","en":"Carrying amount to be compared","es":""},"answer":620000,"tolerance":0,"unit":"EUR"},{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount","es":""},"answer":590000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_COMPARED","meaning":{"fr":"","en":"Carrying amount to be compared","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the facilities","es":""},"value":860000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Site closure provision","es":""},"value":240000,"unit":"EUR"}],"result":620000,"unit":"EUR"},{"step":"RECOVERABLE_AMOUNT","meaning":{"fr":"","en":"Recoverable amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in use before closure outflows","es":""},"value":830000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Site closure provision","es":""},"value":240000,"unit":"EUR"}],"result":590000,"unit":"EUR"},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount to be compared","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":590000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Since a sale would transfer the obligation to the purchaser, the provision is deducted from the carrying amount of the CGU and from its value in use, so that like is compared with like (IAS 36, para. 78).","es":""},"references":["REF.IAS36.78","REF.IAS36.74","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000264","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000603","tested_point":"VG.IAS36.000603","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §79","IAS 36 §75","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"For practical reasons, Distrimax determined the recoverable amount of its West Warehouse CGU by including the warehouse's trade receivables ({trade_receivables}) and trade payables ({trade_payables}). The recoverable amount thus obtained is {ra_incl_working_capital}. The CGU's assets, excluding receivables, have a carrying amount of {cgu_assets}. Determine the adjusted carrying amount of the CGU and the impairment loss.","es":""},"explanation":{"fr":"","en":"When, for practical reasons, the recoverable amount takes into account assets outside the CGU, such as receivables, or recognised liabilities, the carrying amount of the CGU is adjusted in the same way (IAS 36, para. 79), which keeps the two amounts consistent (IAS 36, para. 75). Adjusted carrying amount: 900,000 + 50,000 − 30,000 = 920,000. As the recoverable amount of 880,000 is lower, the impairment loss is 920,000 − 880,000 = 40,000 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Comparing 880,000 with the assets of 900,000 alone (loss of 20,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"cgu_assets","value":"900000","unit":"EUR"},{"id":"trade_receivables","value":"50000","unit":"EUR"},{"id":"trade_payables","value":"30000","unit":"EUR"},{"id":"ra_incl_working_capital","value":"880000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the CGU's assets, excluding receivables","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Trade receivables","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount including receivables and payables","es":""},"value":"880000","unit":"EUR"}],"steps":[{"id":"ADJUSTED_CARRYING_AMOUNT","label":{"fr":"","en":"Adjusted carrying amount of the CGU","es":""},"answer":920000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADJUSTED_CARRYING_AMOUNT","meaning":{"fr":"","en":"Adjusted carrying amount of the CGU","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU's assets, excluding receivables","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade receivables","es":""},"value":50000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Trade payables","es":""},"value":30000,"unit":"EUR"}],"result":920000,"unit":"EUR"},{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Adjusted carrying amount of the CGU","es":""},"value":920000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount including receivables and payables","es":""},"value":880000,"unit":"EUR"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"As the recoverable amount of 880,000 is lower, the impairment loss is 920,000 − 880,000 = 40,000 (IAS 36, para. 104).","es":""}}],"references":["REF.IAS36.79","REF.IAS36.75","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000265","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000603","tested_point":"VG.IAS36.000603","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §79","IAS 36 §75","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The Verdalia garden centre chain is testing its Montclair store, which is a CGU. For simplicity, the finance department calculated the store's recoverable amount, {recoverable_amount_computed}, by including trade customer accounts ({customer_receivables}) and debts owed to nurseries ({supplier_payables}). The store's other assets have a carrying amount of {store_assets}. What is the adjusted carrying amount of the store, and what impairment loss must be recognised?","es":""},"explanation":{"fr":"","en":"The recoverable amount includes receivables and payables: the carrying amount is adjusted symmetrically (IAS 36, para. 79), to remain consistent with the recoverable amount (IAS 36, para. 75). Adjusted carrying amount: 640,000 + 85,000 − 45,000 = 680,000. The recoverable amount of 700,000 is higher: no impairment loss is recognised (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Comparing 700,000 with 725,000 (receivables added but payables forgotten) and recognising a loss of 25,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"store_assets","value":"640000","unit":"EUR"},{"id":"customer_receivables","value":"85000","unit":"EUR"},{"id":"supplier_payables","value":"45000","unit":"EUR"},{"id":"recoverable_amount_computed","value":"700000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the store's other assets","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Trade customer accounts","es":""},"value":"85000","unit":"EUR"},{"label":{"fr":"","en":"Debts owed to nurseries","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount calculated","es":""},"value":"700000","unit":"EUR"}],"steps":[{"id":"ADJUSTED_CARRYING_AMOUNT","label":{"fr":"","en":"Adjusted carrying amount of the store","es":""},"answer":680000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADJUSTED_CARRYING_AMOUNT","meaning":{"fr":"","en":"Adjusted carrying amount of the store","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the store's other assets","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade customer accounts","es":""},"value":85000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Debts owed to nurseries","es":""},"value":45000,"unit":"EUR"}],"result":680000,"unit":"EUR"}],"rationale":{"fr":"","en":"The recoverable amount includes receivables and payables: the carrying amount is adjusted symmetrically (IAS 36, para. 79), to remain consistent with the recoverable amount (IAS 36, para. 75).","es":""},"references":["REF.IAS36.79","REF.IAS36.75","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000266","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000266","tested_point":"QST.IAS36.000266","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §74"],"exercise":{"prompt":{"fr":"","en":"How is the recoverable amount of a cash-generating unit determined?","es":""},"explanation":{"fr":"","en":"The recoverable amount of a CGU is the higher of its fair value less costs of disposal and its value in use; to determine it, the requirements of the standard written for an asset are read as referring to the CGU (IAS 36, para. 74).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As the lower of its fair value less costs of disposal and its value in use, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the higher of the two amounts, not the lower: the entity reflects the best possible use of the unit.","es":""}},{"id":"B","text":{"fr":"","en":"As the sum of the recoverable amounts estimated separately for each of the assets making up the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU is measured as a whole, precisely because its assets do not generate independent cash flows.","es":""}},{"id":"C","text":{"fr":"","en":"As its fair value less costs of disposal alone, value in use being reserved for individual assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Both bases apply to the CGU, as they do to an individual asset.","es":""}},{"id":"D","text":{"fr":"","en":"As the higher of its fair value less costs of disposal and its value in use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000267","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000267","tested_point":"QST.IAS36.000267","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §76"],"exercise":{"prompt":{"fr":"","en":"How are recognised liabilities treated in the carrying amount of a CGU?","es":""},"explanation":{"fr":"","en":"The carrying amount of a CGU includes the assets directly attributable or reasonably allocable that generate the cash flows used, and it excludes recognised liabilities, unless the recoverable amount cannot be determined without considering them (IAS 36, para. 76).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are always deducted, because the carrying amount of a CGU corresponds to its net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The general rule is the opposite: recognised liabilities are excluded, except in specific cases.","es":""}},{"id":"B","text":{"fr":"","en":"They are excluded, unless the recoverable amount cannot be determined without considering them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are excluded in all cases, without any exception, even when a buyer would have to assume them.","es":""},"correct":false,"feedback":{"fr":"","en":"There is an exception: when the recoverable amount cannot be determined without the liability.","es":""}},{"id":"D","text":{"fr":"","en":"Only financial liabilities are deducted; other liabilities are excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not single out financial liabilities: the criterion is how the recoverable amount is determined.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000268","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000268","tested_point":"QST.IAS36.000268","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §76","IAS 36 §75"],"exercise":{"prompt":{"fr":"","en":"Panetis is testing its Industrial Bakery CGU, whose recoverable amount was estimated from the production line's operating cash flows only, without considering financing. Which items are included in the carrying amount of the CGU? (several answers)","es":""},"explanation":{"fr":"","en":"The CGU includes the assets directly attributable to it or reasonably allocable that generate the cash flows used for the recoverable amount: the oven line, the licence and the share of the shared warehouse. The overdraft, a recognised liability without which the recoverable amount can be determined, is excluded, as is a building that does not generate the unit's cash flows (IAS 36, para. 76). The carrying amount thus remains consistent with the recoverable amount (IAS 36, para. 75).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The oven line used for the unit's production.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The bank overdraft that funds the company's cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The overdraft is a recognised liability; as the recoverable amount was determined without financing, it is excluded.","es":""}},{"id":"C","text":{"fr":"","en":"The share, allocated on a reasonable basis, of a shared warehouse where the unit stores its products.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A building leased to a third party, unrelated to the bakery business.","es":""},"correct":false,"feedback":{"fr":"","en":"This building does not contribute to the cash flows used for the unit: it is not part of its carrying amount.","es":""}},{"id":"E","text":{"fr":"","en":"The recipe licence used by the production line.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000269","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000269","tested_point":"QST.IAS36.000269","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §77","IAS 36 §76"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 36 require a CGU to include all the assets that generate, or are used to generate, the cash flows used for its recoverable amount?","es":""},"explanation":{"fr":"","en":"If an asset that contributes to the cash flows were left outside the CGU, its recoverable amount, which includes those cash flows, would be compared with an incomplete carrying amount: the unit might appear fully recoverable when a loss exists (IAS 36, para. 77). This is why the carrying amount includes the attributable or reasonably allocable assets (IAS 36, para. 76). Goodwill and corporate assets, which cannot always be allocated on a reasonable basis, follow their own rules.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"So that the carrying amount of the CGU is always equal to the total carrying amount of the entity's assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU does not include all of the entity's assets, only those that generate its cash flows.","es":""}},{"id":"B","text":{"fr":"","en":"So that goodwill and all corporate assets can be systematically included, whatever their link with the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill and corporate assets cannot always be allocated on a reasonable basis: they follow specific rules.","es":""}},{"id":"C","text":{"fr":"","en":"To prevent a CGU from appearing fully recoverable when an impairment loss has occurred.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To ensure that each CGU is of the same order of magnitude as the entity's other CGUs, to facilitate internal comparisons.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of CGUs is not a criterion: only consistency between cash flows and assets matters.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000270","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000270","tested_point":"QST.IAS36.000270","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §78","IAS 36 §74"],"exercise":{"prompt":{"fr":"","en":"The disposal of a CGU would require the buyer to assume a recognised restoration obligation. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"When the buyer would have to assume the liability, fair value less costs of disposal relates to the assets and liability together; for a meaningful comparison, the carrying amount of the liability is deducted both from the carrying amount of the CGU and from its value in use (IAS 36, para. 78). The recoverable amount remains the higher of the two bases thus put on the same footing (IAS 36, para. 74).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The obligation is ignored, because recognised liabilities are always excluded from the carrying amount of a CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"This is precisely the case where the recoverable amount cannot be determined without considering the liability.","es":""}},{"id":"B","text":{"fr":"","en":"Fair value less costs of disposal relates to the combination of the assets and the obligation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The carrying amount of the obligation is deducted from the carrying amount of the CGU, but not from its value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"The deduction also applies to value in use; otherwise the two bases would not be comparable.","es":""}},{"id":"D","text":{"fr":"","en":"The carrying amount of the obligation is deducted from the carrying amount of the CGU.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The carrying amount of the obligation is deducted from the CGU's value in use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000271","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000271","tested_point":"QST.IAS36.000271","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §78","IAS 36 §75","IAS 36 §74","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The kaolin mine of Kaolys forms a CGU. Its assets have a carrying amount of 3,000,000; a restoration provision of 700,000 is recognised, and any buyer would have to assume it. The mine's fair value less costs of disposal, obligation included, is 2,500,000; value in use excluding restoration outflows is 2,600,000. The controller compares 2,500,000 with 3,000,000 and proposes an impairment loss of 500,000. Which conclusion is correct?","es":""},"explanation":{"fr":"","en":"Fair value less costs of disposal relates to the assets and the obligation together; the carrying amount of the provision is therefore deducted from the carrying amount of the CGU and from its value in use (IAS 36, para. 78), so that the carrying amount is consistent with the recoverable amount (IAS 36, para. 75). Carrying amount to be compared: 3,000,000 − 700,000 = 2,300,000. Adjusted value in use: 2,600,000 − 700,000 = 1,900,000. Recoverable amount: the higher of 2,500,000 and 1,900,000, i.e. 2,500,000 (IAS 36, para. 74). It exceeds 2,300,000: no impairment loss (IAS 36, para. 104).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The controller is right: an impairment loss of 500,000 must be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The controller compares an amount net of the obligation with a gross carrying amount: the comparison is not like for like.","es":""}},{"id":"B","text":{"fr":"","en":"Carrying amount to be compared of 2,300,000, recoverable amount of 2,500,000: no impairment loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The provision must also be deducted from fair value, giving 1,800,000, hence an impairment loss of 500,000 against 2,300,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value already reflects the obligation assumed: deducting it again counts it twice.","es":""}},{"id":"D","text":{"fr":"","en":"Fair value is disregarded because it includes a liability; the net value in use of 1,900,000, compared with 2,300,000, leads to an impairment loss of 400,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value less costs of disposal remains one of the two bases of the recoverable amount; IAS 36 specifically addresses this case.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000272","standard_id":"IAS36","concept_ids":["IAS36.CGU.CARRYING_AMOUNT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000272","tested_point":"QST.IAS36.000272","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000011","section_id":"composition-rule"},"references":["IAS 36 §75","IAS 36 §76","IAS 36 §77"],"exercise":{"prompt":{"fr":"","en":"The value in use projections of Agrifrais's Packaging CGU include the output of a labelling machine used exclusively by that unit. However, the labelling machine is recorded in the head office's accounts, and the controller left it out of the carrying amount of the CGU. What should be done?","es":""},"explanation":{"fr":"","en":"The carrying amount of the CGU is determined consistently with its recoverable amount (IAS 36, para. 75): it includes the directly attributable assets that generate the cash flows used (IAS 36, para. 76). The labelling machine, used exclusively by the unit and whose output is in the projections, must be included; where it is recorded is irrelevant. Otherwise, the unit might appear recoverable when a loss exists (IAS 36, para. 77).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: the labelling machine is recorded at head office and therefore stays outside the Packaging CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"Where the asset is recorded does not matter: what matters is that it generates the cash flows used.","es":""}},{"id":"B","text":{"fr":"","en":"Include the labelling machine in the carrying amount of the CGU, since it generates cash flows used in its value in use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Remove the labelling cash flows from value in use, so as to leave the machine at head office without changing the unit's carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The CGU must include all the assets that generate its cash flows; cutting the projections to avoid including an asset contradicts this requirement.","es":""}},{"id":"D","text":{"fr":"","en":"Include half of the labelling machine's carrying amount, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The labelling machine is used exclusively by the unit: it is included in full, without an arbitrary reduction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000273","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000273","tested_point":"QST.IAS36.000273","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80"],"exercise":{"prompt":{"fr":"","en":"For the purpose of impairment testing, to which units is goodwill acquired in a business combination allocated?","es":""},"explanation":{"fr":"","en":"From the acquisition date, goodwill is allocated to each of the acquirer's CGUs or groups of CGUs expected to benefit from the synergies of the combination, at the lowest level at which it is monitored for internal management purposes and not larger than an operating segment (IAS 36, para. 80).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Exclusively to the CGUs that group the acquiree's identifiable assets, and to no other unit.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is the expected benefit from synergies, not where the acquired assets sit.","es":""}},{"id":"B","text":{"fr":"","en":"To the CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To the entity as a whole, since goodwill does not generate any cash flows of its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Allocating goodwill to the entity as a whole would exceed the operating segment limit.","es":""}},{"id":"D","text":{"fr":"","en":"To the CGUs with the largest headroom between recoverable amount and carrying amount at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"Headroom is not an allocation criterion: the choice would be arbitrary and would hide losses.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000274","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000274","tested_point":"QST.IAS36.000274","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80"],"exercise":{"prompt":{"fr":"","en":"What upper limit does IAS 36 set for the unit or group of units to which goodwill is allocated?","es":""},"explanation":{"fr":"","en":"Each unit or group of units to which goodwill is allocated represents the lowest level at which goodwill is monitored internally and cannot be larger than an operating segment as defined by IFRS 8, before aggregation (IAS 36, para. 80).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An operating segment as defined by IFRS 8, before aggregation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An operating segment as defined by IFRS 8, after aggregation of segments with similar economic characteristics.","es":""},"correct":false,"feedback":{"fr":"","en":"The ceiling is assessed before aggregation of segments, not after.","es":""}},{"id":"C","text":{"fr":"","en":"The acquired legal entity, whatever the number of segments it covers.","es":""},"correct":false,"feedback":{"fr":"","en":"The legal structure of the target does not set the level: the ceiling is the operating segment.","es":""}},{"id":"D","text":{"fr":"","en":"No limit: the level depends solely on the internal monitoring chosen by management.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal monitoring determines the level, but within the operating segment limit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000275","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000275","tested_point":"QST.IAS36.000275","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §81"],"exercise":{"prompt":{"fr":"","en":"Which statements about goodwill are correct under IAS 36? (several answers)","es":""},"explanation":{"fr":"","en":"Goodwill represents future economic benefits that are not individually identified; it does not generate independent cash flows and often contributes to the cash flows of several CGUs. When it can be allocated on a non-arbitrary basis only to groups of CGUs, the lowest monitoring level may comprise several CGUs, and the requirements for CGUs carrying goodwill then apply to those groups (IAS 36, para. 81).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill generates cash flows independently of other assets.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: goodwill does not generate independent cash flows, hence its allocation to CGUs.","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill often contributes to the cash flows of several CGUs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill represents future economic benefits that are not individually identified and separately recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Goodwill must always be allocated to individual CGUs, never to groups of CGUs.","es":""},"correct":false,"feedback":{"fr":"","en":"Allocation to a group of CGUs is provided for when non-arbitrary allocation is only possible at that level.","es":""}},{"id":"E","text":{"fr":"","en":"When goodwill can be allocated on a non-arbitrary basis only to groups of CGUs, the lowest monitoring level may comprise several CGUs.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000276","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000276","tested_point":"QST.IAS36.000276","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80","IAS 36 §81"],"exercise":{"prompt":{"fr":"","en":"The Velonor group has acquired a chain of bicycle shops. Each shop is a CGU. Management monitors the goodwill from this acquisition at the level of the Urban Bikes group, which comprises five shops, within the Mobility operating segment. It has no monitoring of goodwill shop by shop. At which level is goodwill allocated?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated at the lowest level at which it is monitored for internal management purposes, not larger than an operating segment (IAS 36, para. 80). Here, monitoring takes place at the level of the Urban Bikes group, which stays within the Mobility segment. This lowest monitoring level may comprise several CGUs (IAS 36, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To each of the five shops, in proportion to their revenue, since each shop is a CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"A shop-by-shop split matches no internal monitoring and would be arbitrary.","es":""}},{"id":"B","text":{"fr":"","en":"To the Mobility operating segment, for simplicity.","es":""},"correct":false,"feedback":{"fr":"","en":"The segment is a ceiling, not the default level: the lowest, finer monitoring level applies.","es":""}},{"id":"C","text":{"fr":"","en":"To the group of five Urban Bikes CGUs.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To the Velonor group as a whole, across all segments, since it is the acquirer.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity as a whole exceeds the operating segment: this level is prohibited.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000277","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000277","tested_point":"QST.IAS36.000277","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §82","IAS 36 §80"],"exercise":{"prompt":{"fr":"","en":"Optimedia monitors goodwill at the level of its three divisions, each within a separate operating segment. Its internal auditor argues that IAS 36 requires it to design goodwill reporting CGU by CGU. What should be concluded?","es":""},"explanation":{"fr":"","en":"Goodwill is tested at the level that reflects the way the entity manages its operations and at which goodwill is monitored internally; this approach does not require new reporting systems to be developed (IAS 36, para. 82). The division level is appropriate since it does not exceed an operating segment (IAS 36, para. 80).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He is right: goodwill must always be tested at the level of each CGU, which requires dedicated reporting.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not necessarily tested CGU by CGU: it is tested at the lowest level of internal monitoring.","es":""}},{"id":"B","text":{"fr":"","en":"He is right, but only for the first year following the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides for no temporary obligation to report by CGU.","es":""}},{"id":"C","text":{"fr":"","en":"He is right if the divisions each comprise more than ten CGUs.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 sets no threshold based on the number of CGUs.","es":""}},{"id":"D","text":{"fr":"","en":"He is wrong: testing goodwill at the level of internal monitoring does not require new reporting systems to be created.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000278","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000278","tested_point":"QST.IAS36.000278","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §83"],"exercise":{"prompt":{"fr":"","en":"For the purposes of IAS 21, the Hexaport group tracks the goodwill of each of its foreign subsidiaries, whereas it monitors goodwill for internal management at the level of its two regional divisions. What consequence does this finer tracking have for the level of the impairment test?","es":""},"explanation":{"fr":"","en":"The level at which goodwill is allocated for impairment testing may differ from the level at which it is allocated for measuring foreign currency gains and losses under IAS 21; finer tracking for IAS 21 does not require goodwill to be tested at that level (IAS 36, para. 83).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill must be tested subsidiary by subsidiary, since it is already tracked at that level for IAS 21.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 21 tracking does not set the level of the test: the two levels may differ.","es":""}},{"id":"B","text":{"fr":"","en":"No obligation: the allocation level for the test may differ from the one used for IAS 21.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The group must align its IAS 21 tracking with its regional divisions in order to use a single level.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 requires no alignment of the two levels.","es":""}},{"id":"D","text":{"fr":"","en":"Goodwill is tested subsidiary by subsidiary only in the year of acquisition, then at division level.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides for no such change of level over time.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000279","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000279","tested_point":"QST.IAS36.000279","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80","IAS 36 §81","IAS 36 §82","IAS 36 §83"],"exercise":{"prompt":{"fr":"","en":"Brivane's audit committee is reviewing the goodwill allocation policy. Which statements comply with IAS 36? (several answers)","es":""},"explanation":{"fr":"","en":"Goodwill is allocated from the acquisition date, at the lowest level of internal monitoring and not larger than an operating segment (IAS 36, para. 80); monitoring at entity level only therefore does not allow this ceiling to be exceeded. When goodwill is allocated to groups of CGUs, the requirements for CGUs carrying goodwill apply to those groups (IAS 36, para. 81). No new reporting system is required (IAS 36, para. 82), and the IAS 21 level may differ from the testing level (IAS 36, para. 83).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill is allocated to units from the acquisition date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"If management monitors goodwill only at entity level, the entity may allocate it at that level, even beyond an operating segment.","es":""},"correct":false,"feedback":{"fr":"","en":"The operating segment is a ceiling that applies even if internal monitoring takes place at a higher level.","es":""}},{"id":"C","text":{"fr":"","en":"The level used for foreign currency differences under IAS 21 automatically determines the level of the impairment test.","es":""},"correct":false,"feedback":{"fr":"","en":"The two levels may differ: IAS 21 tracking does not set the level of the test.","es":""}},{"id":"D","text":{"fr":"","en":"Testing goodwill at the level of internal monitoring does not require new reporting systems to be created.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The requirements for CGUs carrying goodwill also apply to the groups of CGUs to which it is allocated.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000280","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000280","tested_point":"QST.IAS36.000280","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80"],"exercise":{"prompt":{"fr":"","en":"The Calderis group has three operating segments: Heating, Air Conditioning and Services. It has just acquired Thermalys, whose activities all fall within the Heating segment, where the synergies are expected, and the goodwill is monitored there by that segment's management. The finance director proposes to test this goodwill at the level of the whole group, where the headroom of the other segments would comfortably cover any loss. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated to the CGUs or groups of CGUs expected to benefit from the synergies, at the lowest level of internal monitoring, and each level cannot be larger than an operating segment (IAS 36, para. 80). The synergies are expected in the Heating segment, where goodwill is monitored: the test cannot be carried out at the level of the group, which covers three segments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is acceptable, because the goodwill ultimately benefits the group as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"The whole-group level exceeds an operating segment: this level is prohibited, whatever the economic argument.","es":""}},{"id":"B","text":{"fr":"","en":"The proposal is acceptable if the group mentions it in its notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure in the notes does not cure an allocation level that conflicts with IAS 36.","es":""}},{"id":"C","text":{"fr":"","en":"The proposal is rejected: goodwill is allocated at the lowest level of internal monitoring, not larger than the Heating segment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The proposal is rejected, and goodwill must be split equally among the three segments.","es":""},"correct":false,"feedback":{"fr":"","en":"An equal split among segments ignores the synergy criterion and internal monitoring.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000281","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000281","tested_point":"QST.IAS36.000281","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80","IAS 36 §81"],"exercise":{"prompt":{"fr":"","en":"The retailer Primavente acquires the logistics company Flexroute. The business plan shows that most of the synergies will come from lower delivery costs in two existing Primavente CGUs, North Stores and South Stores, monitored separately by management within the same operating segment. Flexroute forms a third CGU, which will also benefit from the synergies to a lesser extent. The accountant proposes to allocate all the goodwill to the Flexroute CGU, on the grounds that the acquired assets are there. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"From the acquisition date, goodwill is allocated to the CGUs or groups of CGUs expected to benefit from the synergies of the combination, at the lowest level of internal monitoring and not larger than an operating segment (IAS 36, para. 80). The criterion is the expected benefit from synergies, not the location of the acquired assets: North Stores, South Stores and Flexroute benefit from them. As goodwill generates no cash flows of its own and contributes to the cash flows of several CGUs, it must be allocated to these units (IAS 36, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is correct: goodwill always follows the identifiable assets of the acquiree.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation criterion is the benefit from synergies, not where the acquired assets are located.","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill is allocated to the CGUs expected to benefit from the synergies, including North Stores and South Stores, even though no Flexroute assets are assigned to them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill is allocated to the operating segment as a whole, which avoids having to analyse where the synergies lie.","es":""},"correct":false,"feedback":{"fr":"","en":"The segment is a ceiling; since management monitors the CGUs separately, the lowest monitoring level is finer.","es":""}},{"id":"D","text":{"fr":"","en":"Goodwill is not allocated to any CGU, since it does not generate independent cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of cash flows of its own is precisely why goodwill is allocated to CGUs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000282","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000282","tested_point":"QST.IAS36.000282","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §80","IAS 36 §81"],"exercise":{"prompt":{"fr":"","en":"Lumivia, which has two operating segments (Public Lighting and Residential Lighting), has only ever monitored goodwill at the level of the entity as a whole. It acquires a manufacturer whose synergies will benefit both segments. The groups of CGUs in each segment allow a non-arbitrary allocation. How should Lumivia allocate this goodwill?","es":""},"explanation":{"fr":"","en":"Goodwill is allocated to the CGUs or groups of CGUs expected to benefit from the synergies, at the lowest level of internal monitoring, never larger than an operating segment (IAS 36, para. 80). Monitoring limited to the entity as a whole does not allow this ceiling to be exceeded: Lumivia allocates the goodwill to the groups of CGUs in each segment, a level at which non-arbitrary allocation is possible (IAS 36, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the entity as a whole, since it is the only level at which goodwill is monitored internally.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal monitoring cannot justify a level higher than an operating segment.","es":""}},{"id":"B","text":{"fr":"","en":"To each individual CGU of the entity, in proportion to its carrying amount, to avoid any grouping.","es":""},"correct":false,"feedback":{"fr":"","en":"A mechanical CGU-by-CGU split is not required and could be arbitrary; groups of CGUs are permitted.","es":""}},{"id":"C","text":{"fr":"","en":"Exclusively to the segment that legally carried out the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is the benefit from synergies, not the legal entity that acquired; both segments benefit.","es":""}},{"id":"D","text":{"fr":"","en":"To the groups of CGUs in each of the two segments that benefit from the synergies, no level being larger than an operating segment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000284","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000284","tested_point":"QST.IAS36.000284","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"allocation-rule"},"references":["IAS 36 §83","IAS 36 §80","IAS 36 §82"],"exercise":{"prompt":{"fr":"","en":"The Ardentis group has acquired Nordhaven, which holds operating subsidiaries in Norway, Sweden and Denmark. For IAS 21, goodwill is assigned to each of these three foreign operations. Management monitors goodwill at the level of the Nordic hub, a group of CGUs that remains within the Northern Europe operating segment, where all the synergies are expected. The auditors question the level of the impairment test. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"The allocation level for the test may differ from the one used for foreign currency differences under IAS 21; finer assignment for IAS 21 does not require a test at that level (IAS 36, para. 83). Goodwill is allocated at the lowest level of internal monitoring, not larger than an operating segment (IAS 36, para. 80): the Nordic hub. This test at the existing monitoring level does not require new reporting (IAS 36, para. 82).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The test must be performed by country, because the assignment required by IAS 21 sets the minimum level of the test.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 21 assignment does not set the level of the test: the two levels may differ.","es":""}},{"id":"B","text":{"fr":"","en":"The test is performed at the level of the Northern Europe segment, whatever the monitoring level, since it is the ceiling.","es":""},"correct":false,"feedback":{"fr":"","en":"The segment is a ceiling; when internal monitoring exists at a finer level, that lowest level applies.","es":""}},{"id":"C","text":{"fr":"","en":"The test is performed at the level of the Nordic hub, the lowest level of internal monitoring within the segment limit, even though IAS 21 tracking is finer.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Ardentis must create subsidiary-level reporting to justify a test at the level of the Nordic hub.","es":""},"correct":false,"feedback":{"fr":"","en":"Testing at the internal monitoring level does not require new reporting systems to be created.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000285","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000285","tested_point":"QST.IAS36.000285","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"True or false? If the initial allocation of acquired goodwill cannot be completed before the end of the annual period in which the business combination takes place, it must be completed before the end of the first annual period beginning after the acquisition date.","es":""},"explanation":{"fr":"","en":"True. IAS 36 grants a limited period: an initial allocation not completed at the end of the period of the combination must be completed before the end of the first annual period beginning after the acquisition date (IAS 36, para. 84).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000286","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000286","tested_point":"QST.IAS36.000286","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"True or false? As long as the integration of the acquiree is not complete, the acquirer may defer the initial allocation of goodwill to CGUs without any time limit.","es":""},"explanation":{"fr":"","en":"False. Deferral is limited: the initial allocation must be completed no later than before the end of the first annual period beginning after the acquisition date (IAS 36, para. 84). A longer integration does not extend this deadline.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000287","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000287","tested_point":"QST.IAS36.000287","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §85","IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"True or false? When the initial accounting for a business combination can be determined only provisionally at the end of the reporting period, the initial allocation of goodwill may not be completed during the period of the combination; the entity then provides the information required by paragraph 133.","es":""},"explanation":{"fr":"","en":"True. Under IFRS 3, the acquirer uses provisional values and adjusts them during the measurement period; the initial allocation of goodwill may therefore not be completed within the period, and the entity then provides the information in paragraph 133 (IAS 36, para. 85). The deadline for completion remains the one in paragraph 84 (IAS 36, para. 84).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000288","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000288","tested_point":"QST.IAS36.000288","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"Valtera, whose reporting date is 31 December, acquires Brisol on 1 October 20X1. The initial allocation of goodwill is not complete at 31 December 20X1. What is the deadline for completing it?","es":""},"explanation":{"fr":"","en":"An allocation not completed at the end of the period of the combination must be completed before the end of the first annual period beginning after the acquisition date (IAS 36, para. 84). The acquisition takes place on 1 October 20X1; the first annual period beginning afterwards starts on 1 January 20X2 and ends on 31 December 20X2.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"30 September 20X2, i.e. twelve months after the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 36 deadline refers to the end of the first annual period beginning after the acquisition, not to a twelve-month period.","es":""}},{"id":"B","text":{"fr":"","en":"31 December 20X2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"31 December 20X3, at the end of the second annual period after the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"This deadline exceeds the limit: allocation must be completed before the end of the first annual period beginning after the acquisition.","es":""}},{"id":"D","text":{"fr":"","en":"31 December 20X1: no deferral beyond the period of the combination is possible.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 permits a deferral, limited to the end of the first annual period beginning after the acquisition.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000289","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000289","tested_point":"QST.IAS36.000289","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"The Sorelis group's annual periods end on 30 June. It acquires Kalinor on 1 March 20X1. At 30 June 20X1, the initial allocation of goodwill is not complete. By what date at the latest must it be completed?","es":""},"explanation":{"fr":"","en":"Allocation must be completed before the end of the first annual period beginning after the acquisition date (IAS 36, para. 84). The acquisition takes place during the annual period ending on 30 June 20X1; the first annual period beginning afterwards runs from 1 July 20X1 to 30 June 20X2. The deadline is therefore 30 June 20X2.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"31 December 20X1, the end of the calendar year following the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The deadline is determined by reference to the entity's annual periods, not the calendar year.","es":""}},{"id":"B","text":{"fr":"","en":"28 February 20X2, one year after the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The deadline is not one year from the acquisition: it is set by the end of an annual period.","es":""}},{"id":"C","text":{"fr":"","en":"30 June 20X3, the end of the second annual period beginning after the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"That is one period too late: the limit is the end of the first annual period beginning after the acquisition.","es":""}},{"id":"D","text":{"fr":"","en":"30 June 20X2.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000290","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000290","tested_point":"QST.IAS36.000290","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §85","IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"On 1 November 20X1, Aquilon acquires Brumelle; its reporting date is 31 December. At that date, the valuation of Brumelle's intangible assets is not finished: goodwill is recognised on a provisional basis under IFRS 3, and its allocation to CGUs is not complete. Which approach complies with IAS 36?","es":""},"explanation":{"fr":"","en":"When the initial accounting for the combination is only provisional at the reporting date, the initial allocation of goodwill may not be completed within the period; the entity then provides the information in paragraph 133 (IAS 36, para. 85). Allocation must be completed before the end of the first annual period beginning after the acquisition date, here 31 December 20X2 (IAS 36, para. 84).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Allocate the provisional goodwill among the CGUs on a flat-rate basis as early as 20X1, so as not to have unallocated goodwill at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not require an immediate flat-rate allocation: it accepts that allocation may remain incomplete, with information.","es":""}},{"id":"B","text":{"fr":"","en":"Leave the goodwill unallocated at the 20X1 reporting date, provide the information required by paragraph 133, and complete the allocation before 31 December 20X2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Leave the goodwill unallocated without any further information, as the allocation can be completed before 31 December 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferral is permitted, but it comes with the information required by paragraph 133.","es":""}},{"id":"D","text":{"fr":"","en":"Leave the goodwill unallocated until all valuations are final, however long that takes.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferral is limited to the end of the first annual period beginning after the acquisition, i.e. 31 December 20X2.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000291","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000291","tested_point":"QST.IAS36.000291","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §84"],"exercise":{"prompt":{"fr":"","en":"The Corvane group, whose reporting date is 31 December, acquired Delmont on 1 February 20X1. The integration programme is due to last until mid-20X3, and management wishes to wait until it ends, in 20X3, to allocate the goodwill to CGUs, as the final organisation has not been decided. What position should the auditor take?","es":""},"explanation":{"fr":"","en":"If the initial allocation cannot be completed before the end of the period of the combination, it must be completed before the end of the first annual period beginning after the acquisition date (IAS 36, para. 84). For an acquisition on 1 February 20X1, that first annual period runs from 1 January to 31 December 20X2: the length of the integration programme does not allow the allocation to go beyond it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The deferral is acceptable: allocation can wait until the end of the integration, which alone will show which CGUs benefit.","es":""},"correct":false,"feedback":{"fr":"","en":"The length of the integration does not extend the deadline set by IAS 36.","es":""}},{"id":"B","text":{"fr":"","en":"The deferral is acceptable until 1 February 20X3, i.e. two years after the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not set a two-year period: the limit is the end of the first annual period beginning after the acquisition.","es":""}},{"id":"C","text":{"fr":"","en":"The deferral is rejected: the initial allocation must be completed at the latest before 31 December 20X2.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The deferral is rejected, because the allocation had to be completed by 31 December 20X1, with no possibility of deferral.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferral beyond the period of the combination is permitted, until the end of the first annual period beginning afterwards.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000292","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.ALLOCATION_TIMING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000292","tested_point":"QST.IAS36.000292","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"timing-rule"},"references":["IAS 36 §85"],"exercise":{"prompt":{"fr":"","en":"Why may the initial allocation of goodwill not be completed at the end of the annual period in which the business combination took place?","es":""},"explanation":{"fr":"","en":"Under IFRS 3, if the initial accounting for a business combination is only provisional at the reporting date, the acquirer recognises provisional values that it adjusts during the measurement period, which cannot exceed twelve months. The initial allocation of goodwill may then not be completed within the period of the combination (IAS 36, para. 85).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because goodwill is never tested for impairment in the year of acquisition, so its allocation can wait.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the reason given by IAS 36: deferral stems from the provisional nature of the accounting for the combination.","es":""}},{"id":"B","text":{"fr":"","en":"Because management may freely choose whatever allocation date suits it, regardless of the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The date is not a free choice: allocation remains subject to a limited period.","es":""}},{"id":"C","text":{"fr":"","en":"Because goodwill is recognised only at the end of the measurement period, and not before.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is recognised on a provisional basis and then adjusted during the measurement period; it does not wait for the end of that period.","es":""}},{"id":"D","text":{"fr":"","en":"Because the initial accounting for the combination may be only provisional at the reporting date, under IFRS 3.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000293","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000293","tested_point":"QST.IAS36.000293","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"The Valmont group disposes of a cutting workshop that was part of a cash-generating unit (CGU) to which goodwill has been allocated. Which treatment of goodwill is correct in determining the gain or loss on disposal of the workshop?","es":""},"explanation":{"fr":"","en":"When an operation that is part of a CGU carrying goodwill is disposed of, the goodwill associated with that operation is included in its carrying amount when determining the gain or loss on disposal. Unless another method better reflects that goodwill, the portion is measured on the basis of the relative values of the operation disposed of and the part of the CGU retained (IAS 36, para. 86).","es":""},"common_error":{"fr":"","en":"Computing the gain or loss on disposal on the identifiable assets of the operation only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All the goodwill stays in the CGU, since it is not sold separately from the workshop.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not sold separately, but the portion associated with the operation disposed of leaves with it and enters the gain or loss on disposal.","es":""}},{"id":"B","text":{"fr":"","en":"The portion of goodwill associated with the workshop is included in the carrying amount of the workshop disposed of.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The goodwill is first fully impaired through profit or loss, then the workshop is derecognised without goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The disposal does not trigger a full impairment of goodwill: only the portion associated with the workshop leaves with it.","es":""}},{"id":"D","text":{"fr":"","en":"All the goodwill of the CGU leaves with the workshop, since the disposal changes the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the portion associated with the operation disposed of leaves; the rest of the goodwill remains in the retained part of the CGU.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000294","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000701","tested_point":"VG.IAS36.000701","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Brenor disposes of its equipment rental branch, which was part of a CGU to which goodwill of {goodwill_cgu} is allocated. At the disposal date, the value of the branch disposed of is estimated at {value_disposed} and that of the part of the CGU retained at {value_retained}. No other method better reflects the goodwill associated with the branch. Compute the portion of goodwill to include in the carrying amount of the branch disposed of.","es":""},"explanation":{"fr":"","en":"The goodwill associated with the operation disposed of enters the gain or loss on disposal; absent a better method, it is measured on the basis of the relative values of the operation disposed of and the part retained (IAS 36, para. 86). Portion: 600,000 × 300,000 / (300,000 + 1,200,000) = 600,000 × 20% = 120,000. The goodwill remaining in the CGU amounts to 480,000.","es":""},"common_error":{"fr":"","en":"Attaching no goodwill to the branch disposed of.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_cgu","value":"600000","unit":"EUR"},{"id":"value_disposed","value":"300000","unit":"EUR"},{"id":"value_retained","value":"1200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Value of the branch disposed of","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Value of the part of the CGU retained","es":""},"value":"1200000","unit":"EUR"}],"steps":[{"id":"GOODWILL_DISPOSED","label":{"fr":"","en":"Goodwill included in the carrying amount of the branch disposed of","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_DISPOSED","meaning":{"fr":"","en":"Goodwill included in the carrying amount of the branch disposed of","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the branch disposed of","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value of the part of the CGU retained","es":""},"value":1200000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"references":["REF.IAS36.86"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000295","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000701","tested_point":"VG.IAS36.000701","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"The Hestia group sells, for net proceeds of {net_proceeds}, its hospital maintenance division, which was part of the Technical services CGU. The carrying amount of the division's identifiable net assets is {carrying_net_assets}. Goodwill allocated to the CGU is {goodwill_cgu}; the value of the division is estimated at {value_disposed} and that of the operations retained at {value_retained}. No method more relevant than relative values has been demonstrated. Compute the goodwill derecognised with the division and the gain or loss on disposal.","es":""},"explanation":{"fr":"","en":"The portion of goodwill associated with the division is included in its carrying amount when determining the gain or loss on disposal, on the basis of relative values (IAS 36, para. 86). Goodwill derecognised: 400,000 × 1,000,000 / (1,000,000 + 3,000,000) = 100,000. Carrying amount disposed of: 700,000 + 100,000 = 800,000. Gain or loss on disposal: 950,000 − 800,000 = a gain of 150,000.","es":""},"common_error":{"fr":"","en":"Reporting a gain of 250,000 by forgetting the goodwill derecognised.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_proceeds","value":"950000","unit":"EUR"},{"id":"carrying_net_assets","value":"700000","unit":"EUR"},{"id":"goodwill_cgu","value":"400000","unit":"EUR"},{"id":"value_disposed","value":"1000000","unit":"EUR"},{"id":"value_retained","value":"3000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net disposal proceeds (given)","es":""},"value":"950000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the division's identifiable net assets","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill allocated to the Technical services CGU","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Value of the division disposed of","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Value of the operations retained","es":""},"value":"3000000","unit":"EUR"}],"steps":[{"id":"GOODWILL_DISPOSED","label":{"fr":"","en":"Goodwill derecognised with the division","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_ON_DISPOSAL","label":{"fr":"","en":"Gain on disposal","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_DISPOSED","meaning":{"fr":"","en":"Goodwill derecognised with the division","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the Technical services CGU","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the division disposed of","es":""},"value":1000000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value of the operations retained","es":""},"value":3000000,"unit":"EUR"}],"result":100000,"unit":"EUR"},{"step":"GAIN_ON_DISPOSAL","meaning":{"fr":"","en":"Gain on disposal","es":""},"expression":"a - (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net disposal proceeds (given)","es":""},"value":950000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the division's identifiable net assets","es":""},"value":700000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Goodwill derecognised with the division","es":""},"value":100000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The portion of goodwill associated with the division is included in its carrying amount when determining the gain or loss on disposal, on the basis of relative values (IAS 36, para. 86).","es":""},"references":["REF.IAS36.86"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000296","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000702","tested_point":"VG.IAS36.000702","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §87"],"exercise":{"prompt":{"fr":"","en":"The Orvalis group reorganises its reporting: the spare parts operation, until now part of the Equipment CGU, is transferred to the Services CGU. Goodwill allocated to the Equipment CGU amounts to {goodwill_unit}. The value of the operation transferred is {value_transferred} and that of the part remaining in the Equipment CGU is {value_remaining}. No other method better reflects the goodwill associated with the operation transferred. Compute the goodwill reallocated to the Services CGU and the goodwill remaining in the Equipment CGU.","es":""},"explanation":{"fr":"","en":"When a reorganisation changes the composition of units carrying goodwill, the goodwill is reallocated using a relative value approach similar to that used on a disposal, unless a more relevant method exists (IAS 36, para. 87). Goodwill reallocated: 900,000 × 500,000 / (500,000 + 1,000,000) = 300,000. Goodwill remaining: 900,000 − 300,000 = 600,000.","es":""},"common_error":{"fr":"","en":"Leaving all the goodwill in the original CGU because it arose on its acquisition.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_unit","value":"900000","unit":"EUR"},{"id":"value_transferred","value":"500000","unit":"EUR"},{"id":"value_remaining","value":"1000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill allocated to the Equipment CGU before the reorganisation","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Value of the operation transferred","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Value of the part remaining in the Equipment CGU","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"GOODWILL_REALLOCATED","label":{"fr":"","en":"Goodwill reallocated to the Services CGU","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"GOODWILL_REMAINING","label":{"fr":"","en":"Goodwill remaining in the Equipment CGU","es":""},"answer":600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_REALLOCATED","meaning":{"fr":"","en":"Goodwill reallocated to the Services CGU","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the Equipment CGU before the reorganisation","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the operation transferred","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value of the part remaining in the Equipment CGU","es":""},"value":1000000,"unit":"EUR"}],"result":300000,"unit":"EUR"},{"step":"GOODWILL_REMAINING","meaning":{"fr":"","en":"Goodwill remaining in the Equipment CGU","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the Equipment CGU before the reorganisation","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill reallocated to the Services CGU","es":""},"value":300000,"unit":"EUR"}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"When a reorganisation changes the composition of units carrying goodwill, the goodwill is reallocated using a relative value approach similar to that used on a disposal, unless a more relevant method exists (IAS 36, para. 87).","es":""},"references":["REF.IAS36.87"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000297","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000702","tested_point":"VG.IAS36.000702","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §87"],"exercise":{"prompt":{"fr":"","en":"To monitor its two markets separately, Tramontane splits its Distribution CGU, which carries goodwill of {goodwill_unit}, into two new units. The new East CGU takes over operations with a value of {value_east} and the new West CGU operations with a value of {value_west}. Management has identified no method more relevant than relative values. Compute the goodwill reallocated to each new unit.","es":""},"explanation":{"fr":"","en":"The split changes the composition of the unit to which goodwill is allocated: goodwill is reallocated to the new units on the basis of their relative values, unless a more relevant method exists (IAS 36, para. 87). Total value: 1,800,000 + 1,200,000 = 3,000,000. East CGU: 750,000 × 1,800,000 / 3,000,000 = 450,000. West CGU: 750,000 × 1,200,000 / 3,000,000 = 300,000.","es":""},"common_error":{"fr":"","en":"Splitting the goodwill equally between the two new units.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_unit","value":"750000","unit":"EUR"},{"id":"value_east","value":"1800000","unit":"EUR"},{"id":"value_west","value":"1200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill of the Distribution CGU before the split","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Value of the operations taken over by the East CGU","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Value of the operations taken over by the West CGU","es":""},"value":"1200000","unit":"EUR"}],"steps":[{"id":"GOODWILL_EAST","label":{"fr":"","en":"Goodwill reallocated to the East CGU","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"GOODWILL_WEST","label":{"fr":"","en":"Goodwill reallocated to the West CGU","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_EAST","meaning":{"fr":"","en":"Goodwill reallocated to the East CGU","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill of the Distribution CGU before the split","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the operations taken over by the East CGU","es":""},"value":1800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value of the operations taken over by the West CGU","es":""},"value":1200000,"unit":"EUR"}],"result":450000,"unit":"EUR"},{"step":"GOODWILL_WEST","meaning":{"fr":"","en":"Goodwill reallocated to the West CGU","es":""},"expression":"a * b / (c + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill of the Distribution CGU before the split","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value of the operations taken over by the West CGU","es":""},"value":1200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value of the operations taken over by the East CGU","es":""},"value":1800000,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"The split changes the composition of the unit to which goodwill is allocated: goodwill is reallocated to the new units on the basis of their relative values, unless a more relevant method exists (IAS 36, para. 87).","es":""},"references":["REF.IAS36.87"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000298","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000298","tested_point":"QST.IAS36.000298","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Cerdagne disposes of its catering operation, part of a restaurant CGU carrying goodwill of 240,000. Data at the disposal date: operation disposed of, estimated value 200,000 and carrying amount excluding goodwill 150,000; part retained, estimated value 600,000 and carrying amount excluding goodwill 250,000. The management accountant proposes allocating goodwill in proportion to carrying amounts. No other method has been shown to be more relevant. What goodwill must be included in the carrying amount of the operation disposed of?","es":""},"explanation":{"fr":"","en":"Unless a better method is demonstrated, the goodwill associated with the operation disposed of is measured on the basis of the relative values of the operation disposed of and the part retained (IAS 36, para. 86), not of carrying amounts. Computation: 240,000 × 200,000 / (200,000 + 600,000) = 60,000. The management accountant's proposal would give 240,000 × 150,000 / (150,000 + 250,000) = 90,000.","es":""},"common_error":{"fr":"","en":"Using carrying amounts because they appear in the books.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"90,000, in proportion to carrying amounts excluding goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the management accountant's proposal: the key must be relative values, not carrying amounts.","es":""}},{"id":"B","text":{"fr":"","en":"None: the goodwill stays attached to the restaurant CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"The portion of goodwill associated with the operation disposed of enters the gain or loss on disposal.","es":""}},{"id":"C","text":{"fr":"","en":"60,000, in proportion to relative values.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"240,000, i.e. all the goodwill of the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the portion associated with the operation disposed of leaves; the retained part keeps the rest of the goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000299","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000299","tested_point":"QST.IAS36.000299","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §87","IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Pyla reorganises its reporting structure, which changes the composition of two CGUs to which goodwill has been allocated. Which statement correctly describes what happens to that goodwill?","es":""},"explanation":{"fr":"","en":"When a reorganisation changes the composition of units carrying goodwill, the goodwill is reallocated to the units affected using a relative value approach similar to the one used on the disposal of an operation (IAS 36, para. 86 and 87), unless another method better reflects the goodwill associated with the reorganised units.","es":""},"common_error":{"fr":"","en":"Leaving goodwill in a unit whose composition has changed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reallocated on relative values, as for a disposal, unless a more relevant method exists.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It stays allocated to the original units until the next business combination, the internal reorganisation having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"A reorganisation that changes the composition of units requires the goodwill to be reallocated.","es":""}},{"id":"C","text":{"fr":"","en":"It is reallocated in proportion to the carrying amounts of the assets transferred, the only objective basis available.","es":""},"correct":false,"feedback":{"fr":"","en":"The reference key is relative values, not carrying amounts.","es":""}},{"id":"D","text":{"fr":"","en":"It must be fully impaired in the units changed before any reallocation.","es":""},"correct":false,"feedback":{"fr":"","en":"The reorganisation does not in itself create an impairment loss: the goodwill is reallocated, not impaired.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000300","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.DISPOSAL_REORGANISATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000300","tested_point":"QST.IAS36.000300","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000012","section_id":"disposal-rule"},"references":["IAS 36 §86"],"exercise":{"prompt":{"fr":"","en":"Lorvane sells one of the shops of its regional network; the shop is an operation within the South network CGU, to which goodwill has been allocated. The finance director computes the gain or loss on disposal by comparing the selling price with the carrying amount of the shop's fittings and inventories only. What correction is needed?","es":""},"explanation":{"fr":"","en":"The goodwill associated with an operation disposed of within a CGU is included in the carrying amount of that operation when determining the gain or loss on disposal; it is measured in principle on the basis of the relative values of the operation disposed of and the part retained (IAS 36, para. 86). The finance director's computation omits this goodwill and therefore overstates the gain on disposal.","es":""},"common_error":{"fr":"","en":"Forgetting the goodwill, which overstates the gain on disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: goodwill can only be derecognised when the whole CGU is disposed of.","es":""},"correct":false,"feedback":{"fr":"","en":"Disposing of an operation within the CGU is enough: the associated portion of goodwill leaves with it.","es":""}},{"id":"B","text":{"fr":"","en":"Add the portion of goodwill associated with the shop, measured in principle on relative values.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise the shop's portion of goodwill as a separate impairment loss, outside the gain or loss on disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The portion of goodwill is not a separate impairment loss: it is part of the gain or loss on disposal.","es":""}},{"id":"D","text":{"fr":"","en":"Add a portion of goodwill computed in proportion to the carrying amount of the shop's inventories.","es":""},"correct":false,"feedback":{"fr":"","en":"The reference key is the relative values of the operation disposed of and the part retained.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000301","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000301","tested_point":"QST.IAS36.000301","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"How often must a CGU to which goodwill has been allocated be tested for impairment?","es":""},"explanation":{"fr":"","en":"A CGU to which goodwill has been allocated is tested annually, and whenever there is an indication that it may be impaired, by comparing its carrying amount, including goodwill, with its recoverable amount (IAS 36, para. 90).","es":""},"common_error":{"fr":"","en":"Testing the unit only when there is an indication.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only when there is an indication that the unit may be impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test is required even without an indication: this is the specific feature of units carrying goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"Every three years, with an additional test if an indication arises between two tests.","es":""},"correct":false,"feedback":{"fr":"","en":"No multi-year cycle is provided for: the test is annual.","es":""}},{"id":"C","text":{"fr":"","en":"Annually, and in addition whenever there is an indication of impairment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Annually only, an indication arising during the year having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication arising during the year also requires a test, in addition to the annual test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000302","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000302","tested_point":"QST.IAS36.000302","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §96"],"exercise":{"prompt":{"fr":"","en":"Ostrale, whose year ends on 31 December, has several CGUs to which goodwill has been allocated. Select the correct statements about the timing of the annual impairment test.","es":""},"explanation":{"fr":"","en":"The annual test of a CGU carrying goodwill may be performed at any time during the year, provided it is performed at the same time every year; different CGUs may be tested at different times. When some of the goodwill of the CGU arose from a business combination during the year, the CGU is tested before the end of that year (IAS 36, para. 96).","es":""},"common_error":{"fr":"","en":"Believing that the annual test must coincide with the year-end.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The annual test must be performed at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not required: any date in the year will do if it is kept the same from one year to the next.","es":""}},{"id":"B","text":{"fr":"","en":"The annual test may be performed at any time during the year, provided it is performed at the same time every year.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All CGUs carrying goodwill must be tested at the same time.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows different dates for different CGUs.","es":""}},{"id":"D","text":{"fr":"","en":"Different CGUs may be tested at different times.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"If some of the goodwill of a CGU arose from a business combination during the year, that CGU is tested before the end of that year.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000303","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000703","tested_point":"VG.IAS36.000703","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"In its annual test, Fenwood reviews the Packaging CGU, whose assets excluding goodwill have a carrying amount of {carrying_other_assets} and to which goodwill of {goodwill} is allocated. The recoverable amount of the CGU is {recoverable_amount}. Compute the impairment loss of the CGU.","es":""},"explanation":{"fr":"","en":"A CGU carrying goodwill is tested by comparing its carrying amount, including goodwill, with its recoverable amount; the excess is an impairment loss, allocated under paragraph 104 (IAS 36, para. 90). Carrying amount: 2,400,000 + 300,000 = 2,700,000. Loss: 2,700,000 − 2,550,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount with the assets excluding goodwill only and concluding that there is no loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_other_assets","value":"2400000","unit":"EUR"},{"id":"goodwill","value":"300000","unit":"EUR"},{"id":"recoverable_amount","value":"2550000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the CGU's assets excluding goodwill","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"2550000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss of the CGU","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss of the CGU","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU's assets excluding goodwill","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":2550000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS36.90"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000304","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000703","tested_point":"VG.IAS36.000703","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The Kerlann hotel group tests its Coast CGU, made up of three hotels. The unit's assets, excluding goodwill, have a carrying amount of {carrying_other_assets}; the goodwill allocated amounts to {goodwill}. The recoverable amount of the unit is estimated at {recoverable_amount}. No individual floor limits the reduction of the assets (given). Compute the impairment loss and its allocation between goodwill and the other assets.","es":""},"explanation":{"fr":"","en":"The carrying amount tested includes goodwill (IAS 36, para. 90): 5,200,000 + 450,000 = 5,650,000. Loss: 5,650,000 − 4,900,000 = 750,000. The loss first reduces the goodwill allocated, then the other assets pro rata to their carrying amounts (IAS 36, para. 104): goodwill reduced to zero (450,000), remaining 300,000 on the other assets.","es":""},"common_error":{"fr":"","en":"Spreading the 750,000 pro rata between goodwill and the other assets.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_other_assets","value":"5200000","unit":"EUR"},{"id":"goodwill","value":"450000","unit":"EUR"},{"id":"recoverable_amount","value":"4900000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the assets excluding goodwill","es":""},"value":"5200000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill allocated to the Coast CGU","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the Coast CGU","es":""},"value":"4900000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Total impairment loss","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"GOODWILL_REDUCTION","label":{"fr":"","en":"Reduction of goodwill","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"OTHER_ASSETS_REDUCTION","label":{"fr":"","en":"Reduction of the other assets","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Total impairment loss","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the assets excluding goodwill","es":""},"value":5200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill allocated to the Coast CGU","es":""},"value":450000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount of the Coast CGU","es":""},"value":4900000,"unit":"EUR"}],"result":750000,"unit":"EUR"}],"rationale":{"fr":"","en":"The loss first reduces the goodwill allocated, then the other assets pro rata to their carrying amounts (IAS 36, para. 104): goodwill reduced to zero (450,000), remaining 300,000 on the other assets.","es":""},"references":["REF.IAS36.90","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000305","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000703","tested_point":"VG.IAS36.000703","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §90","IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Following the loss of a major customer (an indication of impairment), Quintal tests its Components CGU, to which goodwill of {goodwill} has been allocated. The unit's other assets have a carrying amount of {carrying_other_assets}. The unit's fair value less costs of disposal is {fvlcd} and its value in use is {value_in_use}. Determine the recoverable amount of the unit and the impairment loss.","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18): 3,900,000. The carrying amount tested includes goodwill (IAS 36, para. 90): 3,600,000 + 500,000 = 4,100,000. Loss: 4,100,000 − 3,900,000 = 200,000.","es":""},"common_error":{"fr":"","en":"Using fair value less costs of disposal and computing a loss of 350,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_other_assets","value":"3600000","unit":"EUR"},{"id":"goodwill","value":"500000","unit":"EUR"},{"id":"fvlcd","value":"3750000","unit":"EUR"},{"id":"value_in_use","value":"3900000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the assets excluding goodwill","es":""},"value":"3600000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill allocated to the Components CGU","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal of the unit","es":""},"value":"3750000","unit":"EUR"},{"label":{"fr":"","en":"Value in use of the unit","es":""},"value":"3900000","unit":"EUR"}],"steps":[{"id":"RECOVERABLE_AMOUNT","label":{"fr":"","en":"Recoverable amount of the unit","es":""},"answer":3900000,"tolerance":0,"unit":"EUR"},{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the assets excluding goodwill","es":""},"value":3600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill allocated to the Components CGU","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Value in use of the unit","es":""},"value":3900000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18): 3,900,000.","es":""},"references":["REF.IAS36.90","REF.IAS36.18"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000306","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000704","tested_point":"VG.IAS36.000704","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"In the annual test of its Rolling CGU, Marquise has the following carrying amounts: goodwill {goodwill}, production plant {plant}, factory building {building}. The recoverable amount of the unit is {recoverable_amount}. No individual floor limits the reduction of the assets (given). Compute the impairment loss, then the carrying amounts of the plant and of the building after the test.","es":""},"explanation":{"fr":"","en":"Carrying amount including goodwill (IAS 36, para. 90): 200,000 + 1,200,000 + 800,000 = 2,200,000. Loss: 2,200,000 − 1,600,000 = 600,000. Allocation (IAS 36, para. 104): goodwill first, 200,000; remaining 400,000 pro rata to the other assets (2,000,000): plant 400,000 × 1,200,000 / 2,000,000 = 240,000, building 400,000 × 800,000 / 2,000,000 = 160,000. Amounts after the test: plant 1,200,000 − 240,000 = 960,000; building 800,000 − 160,000 = 640,000.","es":""},"common_error":{"fr":"","en":"Including goodwill in the pro rata base.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill","value":"200000","unit":"EUR"},{"id":"plant","value":"1200000","unit":"EUR"},{"id":"building","value":"800000","unit":"EUR"},{"id":"recoverable_amount","value":"1600000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Production plant","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Factory building","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"1600000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss of the CGU","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"PLANT_AFTER","label":{"fr":"","en":"Carrying amount of the plant after the test","es":""},"answer":960000,"tolerance":0,"unit":"EUR"},{"id":"BUILDING_AFTER","label":{"fr":"","en":"Carrying amount of the building after the test","es":""},"answer":640000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss of the CGU","es":""},"expression":"(a + b + c) - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the CGU","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Production plant","es":""},"value":1200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Factory building","es":""},"value":800000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":1600000,"unit":"EUR"}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"Allocation (IAS 36, para. 104): goodwill first, 200,000","es":""},"references":["REF.IAS36.90","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000307","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000704","tested_point":"VG.IAS36.000704","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A competitor launches a cheaper offer and Sirocco, a video game publisher, identifies an indication of impairment on its Studio CGU. Carrying amounts: goodwill {goodwill}, computer equipment {equipment}, software licences (intangible assets) {licences}. The recoverable amount of the unit is {recoverable_amount}. No individual floor is binding (given). Compute the impairment loss and the carrying amounts of the equipment and of the licences after allocation.","es":""},"explanation":{"fr":"","en":"When there is an indication, the CGU carrying goodwill is tested without waiting for the annual test date, including goodwill (IAS 36, para. 90): 150,000 + 900,000 + 600,000 = 1,650,000. Loss: 1,650,000 − 1,050,000 = 600,000. Allocation (IAS 36, para. 104): goodwill 150,000; remaining 450,000 pro rata to 1,500,000: equipment 450,000 × 900,000 / 1,500,000 = 270,000, licences 450,000 × 600,000 / 1,500,000 = 180,000. After allocation: equipment 630,000; licences 420,000.","es":""},"common_error":{"fr":"","en":"Waiting for the annual test despite the indication.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill","value":"150000","unit":"EUR"},{"id":"equipment","value":"900000","unit":"EUR"},{"id":"licences","value":"600000","unit":"EUR"},{"id":"recoverable_amount","value":"1050000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill allocated to the Studio CGU","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Computer equipment","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Software licences","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the Studio CGU","es":""},"value":"1050000","unit":"EUR"}],"steps":[{"id":"IMPAIRMENT_LOSS","label":{"fr":"","en":"Impairment loss of the unit","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"EQUIPMENT_AFTER","label":{"fr":"","en":"Carrying amount of the equipment after allocation","es":""},"answer":630000,"tolerance":0,"unit":"EUR"},{"id":"LICENCES_AFTER","label":{"fr":"","en":"Carrying amount of the licences after allocation","es":""},"answer":420000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IMPAIRMENT_LOSS","meaning":{"fr":"","en":"Impairment loss of the unit","es":""},"expression":"(a + b + c) - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill allocated to the Studio CGU","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Computer equipment","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Software licences","es":""},"value":600000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Recoverable amount of the Studio CGU","es":""},"value":1050000,"unit":"EUR"}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"Allocation (IAS 36, para. 104): goodwill 150,000","es":""},"references":["REF.IAS36.90","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000308","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000308","tested_point":"QST.IAS36.000308","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §88"],"exercise":{"prompt":{"fr":"","en":"Goodwill acquired by Linor relates to its Transport CGU, but it could not be allocated to it: it is monitored at the level of a larger group of units. The Transport CGU contains no intangible asset with an indefinite useful life. How is the Transport CGU tested at its own level?","es":""},"explanation":{"fr":"","en":"When goodwill relates to a CGU but has not been allocated to it, the unit is tested whenever there is an indication of impairment, by comparing its carrying amount excluding goodwill with its recoverable amount; any loss is recognised under paragraph 104 (IAS 36, para. 88).","es":""},"common_error":{"fr":"","en":"Including an arbitrary share of goodwill in the unit's carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Annually, including an estimated share of goodwill in its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill not allocated to the unit is not part of its carrying amount, and the test is not annual when there is no asset to be tested every year.","es":""}},{"id":"B","text":{"fr":"","en":"When there is an indication, by comparing its carrying amount excluding goodwill with its recoverable amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Never at its own level: only the group of units to which goodwill is allocated is tested.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit itself is still tested when there is an indication, regardless of the test of the group carrying the goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"When there is an indication, by comparing its carrying amount including goodwill with its recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Since goodwill is not allocated to this unit, it is excluded from its carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000309","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000309","tested_point":"QST.IAS36.000309","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §99"],"exercise":{"prompt":{"fr":"","en":"For the annual test of its Logistics CGU, Arbelle wishes to reuse the detailed calculation of recoverable amount made in the previous year. Which of the following situations prevents it from doing so?","es":""},"explanation":{"fr":"","en":"The most recent detailed calculation of the recoverable amount of a CGU carrying goodwill may be reused if three cumulative conditions are met: composition little changed, a substantial margin of recoverable amount over carrying amount in that calculation, and a remote likelihood, given the events that have occurred, that the current recoverable amount is below the carrying amount (IAS 36, para. 99). A small margin fails the second condition.","es":""},"common_error":{"fr":"","en":"Reusing an old calculation although the headroom was narrow.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In that calculation, the recoverable amount exceeded the carrying amount only slightly.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The detailed calculation was made in the previous year, not during the current year.","es":""},"correct":false,"feedback":{"fr":"","en":"This is exactly the case covered: a calculation from a prior period may be reused if the conditions are met.","es":""}},{"id":"C","text":{"fr":"","en":"The unit's assets and liabilities have not changed significantly since that calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"A composition little changed is one of the conditions for reuse, not an obstacle.","es":""}},{"id":"D","text":{"fr":"","en":"Given the events that have occurred since, the likelihood that the current recoverable amount is below the carrying amount is remote.","es":""},"correct":false,"feedback":{"fr":"","en":"This is also a condition for reuse, met here: the standard requires this likelihood to be remote, not merely that a lower recoverable amount is not likely.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000310","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000310","tested_point":"QST.IAS36.000310","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §96","IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"Granvelle, whose year ends on 31 December, usually tests its CGUs on 30 June. In September 20X1, it acquires a business and allocates the resulting goodwill, 700,000, to a new Trading CGU. On 30 November 20X1, the assets of the Trading CGU excluding goodwill have a carrying amount of 2,100,000 and its recoverable amount is 2,650,000. What conclusion should be drawn for 20X1?","es":""},"explanation":{"fr":"","en":"When some of the goodwill of a CGU arose from a business combination during the year, the CGU is tested before the end of that year (IAS 36, para. 96). The test compares the carrying amount including goodwill with the recoverable amount (IAS 36, para. 90): 2,100,000 + 700,000 = 2,800,000, against 2,650,000, giving a loss of 150,000.","es":""},"common_error":{"fr":"","en":"Applying the usual test date to goodwill from a business combination of the current year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No test in 20X1: the Trading CGU will be tested for the first time on 30 June 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill arising from a business combination during the year requires a test before the end of that same year.","es":""}},{"id":"B","text":{"fr":"","en":"A test before 31 December 20X1 and an impairment loss of 150,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A test before 31 December 20X1, with no loss, the recoverable amount covering the assets excluding goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount tested includes goodwill: 2,800,000 exceeds 2,650,000.","es":""}},{"id":"D","text":{"fr":"","en":"A test before 31 December 20X1 and a full impairment of goodwill of 700,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss is limited to the excess of carrying amount over recoverable amount, i.e. 150,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000311","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000311","tested_point":"QST.IAS36.000311","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90"],"exercise":{"prompt":{"fr":"","en":"Dunmore's year ends on 31 December 20X2. Its Laboratories CGU carries goodwill of 400,000; the carrying amount of its other assets is 3,800,000. No indication of impairment was identified during the year and the finance director proposes not to test the unit. The auditor nevertheless obtains a test, performed at the usual date, which shows a recoverable amount of 3,950,000. What conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"A CGU carrying goodwill is tested every year, even without an indication, by comparing its carrying amount including goodwill with its recoverable amount; any excess is an impairment loss (IAS 36, para. 90). Carrying amount: 3,800,000 + 400,000 = 4,200,000. Loss: 4,200,000 − 3,950,000 = 250,000, recognised in 20X2.","es":""},"common_error":{"fr":"","en":"Making the test of a unit carrying goodwill depend on the existence of an indication.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No test was required in the absence of an indication: no loss is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"For a unit carrying goodwill, the annual test does not depend on the existence of an indication.","es":""}},{"id":"B","text":{"fr":"","en":"The recoverable amount exceeds the carrying amount of the assets excluding goodwill: no loss is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison must include goodwill: 4,200,000 exceeds 3,950,000.","es":""}},{"id":"C","text":{"fr":"","en":"The test is mandatory and shows a loss of 250,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The test is mandatory, but the loss of 250,000 awaits an indication before being recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss revealed by the test is recognised without waiting for an indication.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000312","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000312","tested_point":"QST.IAS36.000312","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-rule"},"references":["IAS 36 §90","IAS 36 §88","IAS 36 §89"],"exercise":{"prompt":{"fr":"","en":"The Sorel group reviews three CGUs. The Alpha CGU carries goodwill that has been allocated to it. The Beta CGU is related to goodwill that could not be allocated to it and is monitored at the level of a group of units. The Gamma CGU is in the same situation as Beta, but also includes a brand with an indefinite useful life that can be tested only as part of the unit. Select the correct statements.","es":""},"explanation":{"fr":"","en":"A CGU to which goodwill is allocated is tested annually and whenever there is an indication, including goodwill (IAS 36, para. 90). A CGU to which unallocated goodwill relates is tested when there is an indication, on its carrying amount excluding goodwill (IAS 36, para. 88). If such a unit includes an intangible asset with an indefinite useful life that can be tested only as part of the unit, it is tested annually (IAS 36, para. 89).","es":""},"common_error":{"fr":"","en":"Including in a unit goodwill that is not allocated to it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Alpha is tested annually and whenever there is an indication, including goodwill.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Beta is tested annually, including goodwill in its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill not allocated to Beta is excluded from its carrying amount, and Beta is tested only when there is an indication.","es":""}},{"id":"C","text":{"fr":"","en":"Beta is tested when there is an indication, by comparing its carrying amount excluding goodwill with its recoverable amount.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Alpha is tested only when there is an indication of impairment.","es":""},"correct":false,"feedback":{"fr":"","en":"A unit carrying allocated goodwill is tested every year, even without an indication.","es":""}},{"id":"E","text":{"fr":"","en":"Gamma is tested annually.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000313","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000313","tested_point":"QST.IAS36.000313","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §97"],"exercise":{"prompt":{"fr":"","en":"Valcourt tests at the same time its Printing CGU, to which goodwill is allocated, and several rotary presses of that unit whose recoverable amount can be estimated individually. In what order must it proceed?","es":""},"explanation":{"fr":"","en":"When the assets making up a CGU carrying goodwill are tested at the same time as the unit, they are tested before it (IAS 36, para. 97). The presses are therefore tested first; the CGU is then tested on the basis of their carrying amounts, reduced where necessary.","es":""},"common_error":{"fr":"","en":"Testing the unit before its assets and charging to goodwill a loss that belongs to an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Test the CGU first, then the presses, to avoid impairing the same asset twice.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is the reverse: the assets of the unit are tested before the unit itself.","es":""}},{"id":"B","text":{"fr":"","en":"Test the presses first, then the CGU.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Test the CGU and the presses simultaneously and keep only the higher of the two losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The two tests are not alternatives: they follow one another, the assets first, then the unit.","es":""}},{"id":"D","text":{"fr":"","en":"Test only the CGU, since it is the unit to which goodwill is allocated.","es":""},"correct":false,"feedback":{"fr":"","en":"The presses had to be tested: they are tested before the unit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000314","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000314","tested_point":"QST.IAS36.000314","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §97"],"exercise":{"prompt":{"fr":"","en":"Ambrières's goodwill is allocated to a group of three CGUs, without it being possible to allocate it to each of them. The three units and the group are tested at the same time. Which approach is correct?","es":""},"explanation":{"fr":"","en":"When the CGUs making up a group to which goodwill is allocated are tested at the same time as the group, they are tested before it (IAS 36, para. 97). Each unit is therefore tested first; the group is then tested, including goodwill, with the carrying amounts of the units after any losses.","es":""},"common_error":{"fr":"","en":"Starting with the level that carries the goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Test the group first; the units are tested only if the group shows a loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is reversed: the units are tested before the group, not only if the group shows a loss.","es":""}},{"id":"B","text":{"fr":"","en":"Test only the group, since the goodwill is not allocated to any unit on its own.","es":""},"correct":false,"feedback":{"fr":"","en":"Units tested at the same time must be tested, and before the group.","es":""}},{"id":"C","text":{"fr":"","en":"Test each of the three units, then the group.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Test the units after the group and charge their losses to the group's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The units are tested before the group, and a loss specific to a unit is not shifted to the group's goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000315","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000315","tested_point":"QST.IAS36.000315","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §98"],"exercise":{"prompt":{"fr":"","en":"At Tessane, a kiln in the Ceramics CGU, to which goodwill is allocated, suffered a breakdown during the year: there is an indication of impairment for this kiln, whose recoverable amount can be estimated individually. The annual test of the CGU takes place in the same period. What must the company do?","es":""},"explanation":{"fr":"","en":"When there is an indication that an asset within a CGU carrying goodwill may be impaired, the asset is tested and any loss on it is recognised before the CGU is tested (IAS 36, para. 98). The CGU is then tested with the carrying amount of the kiln after that loss.","es":""},"common_error":{"fr":"","en":"Letting goodwill absorb a loss specific to an identifiable asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Test the kiln and recognise any loss on it, then test the CGU.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Test only the CGU, the kiln's breakdown necessarily being captured by the recoverable amount of the unit as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset showing an indication must itself be tested, before the unit; otherwise its loss would be absorbed by goodwill.","es":""}},{"id":"C","text":{"fr":"","en":"Test the CGU first, then the kiln, charging any loss on the kiln to the unit's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is reversed, and the loss specific to the kiln must not be charged to goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"Postpone the annual test of the CGU to the next year, the loss on the kiln being enough for this year.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual test of the CGU carrying goodwill is still due; it comes after that of the kiln.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000316","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000316","tested_point":"QST.IAS36.000316","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §98","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Morvenne identifies an indication of impairment on a press in its Foundry CGU. The press has a carrying amount of 500,000 and an individual recoverable amount of 380,000. The CGU also includes other assets of 2,000,000 and goodwill of 300,000; its recoverable amount is 2,600,000. What impairment losses must be recognised?","es":""},"explanation":{"fr":"","en":"The asset showing an indication is tested and impaired before the CGU (IAS 36, para. 98): press 500,000 − 380,000 = 120,000. The CGU is then tested: 2,000,000 + 380,000 + 300,000 = 2,680,000, against a recoverable amount of 2,600,000, giving a loss of 80,000, charged first to goodwill (IAS 36, para. 104). Total: 200,000.","es":""},"common_error":{"fr":"","en":"Counting the loss on the press twice in the CGU test.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of 200,000 charged to goodwill; the press stays at 500,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This results from testing the CGU before the press: the loss specific to the press would wrongly be absorbed by goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"A loss of 120,000 on the press; the CGU test becomes unnecessary.","es":""},"correct":false,"feedback":{"fr":"","en":"After the loss on the press, the CGU must still be tested; it shows a loss of 80,000.","es":""}},{"id":"C","text":{"fr":"","en":"A loss of 120,000 on the press, then a loss of 80,000 on goodwill.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A loss of 120,000 on the press, then a loss of 200,000 on goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the CGU must include the press after its loss (380,000), which brings the unit's loss down to 80,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000317","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000317","tested_point":"QST.IAS36.000317","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §98","IAS 36 §97"],"exercise":{"prompt":{"fr":"","en":"Lisière's goodwill of 600,000 is allocated to the group formed by its Alpha and Beta CGUs, without it being possible to allocate it to each. The Beta CGU shows an indication of impairment: carrying amount 1,500,000, recoverable amount 1,300,000. The Alpha CGU has a carrying amount of 2,000,000. The recoverable amount of the group is 3,700,000. What losses must be recognised?","es":""},"explanation":{"fr":"","en":"The CGU showing an indication is tested and its loss recognised before the group carrying goodwill is tested (IAS 36, para. 98): Beta 1,500,000 − 1,300,000 = 200,000. The group is then tested: 2,000,000 + 1,300,000 + 600,000 = 3,900,000, against 3,700,000, giving a loss of 200,000 on goodwill. Total: 400,000, of which 200,000 on Beta's assets.","es":""},"common_error":{"fr":"","en":"Testing the group on Beta's carrying amount before impairment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of 400,000 on the group's goodwill, with no impairment of the Beta CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"Testing the group first makes goodwill absorb the loss specific to Beta, whose assets would remain overstated.","es":""}},{"id":"B","text":{"fr":"","en":"A loss of 200,000 on the Beta CGU, the group test then becoming unnecessary.","es":""},"correct":false,"feedback":{"fr":"","en":"After Beta's loss, the group carrying goodwill must still be tested: it shows a loss of 200,000.","es":""}},{"id":"C","text":{"fr":"","en":"A loss of 200,000 on the Beta CGU, then a loss of 400,000 on goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the group must include Beta after its loss (1,300,000): the group's loss is 200,000.","es":""}},{"id":"D","text":{"fr":"","en":"A loss of 200,000 on the Beta CGU, then a loss of 200,000 on goodwill.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000318","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.TESTING_ORDER"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000318","tested_point":"QST.IAS36.000318","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"testing-order"},"references":["IAS 36 §98"],"exercise":{"prompt":{"fr":"","en":"During a review, an auditor finds that Brévine tested directly the group of CGUs carrying its goodwill, whose recoverable amount far exceeds its carrying amount, without testing the Trading CGU, a member of the group, which nevertheless showed an indication of impairment. What conclusion should the auditor reach?","es":""},"explanation":{"fr":"","en":"When there is an indication of impairment for a CGU that is part of a group of units carrying goodwill, the unit is tested and any loss on it is recognised before the group is tested (IAS 36, para. 98). Headroom at group level does not exempt the entity from testing the unit that shows an indication.","es":""},"common_error":{"fr":"","en":"Relying on the group's headroom not to test a unit showing an indication.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The approach is correct: the group's headroom covers any fall in the value of the Trading CGU.","es":""},"correct":false,"feedback":{"fr":"","en":"The group's headroom does not replace the test of the unit showing an indication, which must be performed first.","es":""}},{"id":"B","text":{"fr":"","en":"The Trading CGU had to be tested, and any loss recognised, before the group was tested.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The Trading CGU must be tested, but any loss on it is charged to the group's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The Trading CGU's loss relates to its own assets; it is recognised before the group is tested.","es":""}},{"id":"D","text":{"fr":"","en":"The test of the Trading CGU can wait for the next annual test of the group, which may make it unnecessary.","es":""},"correct":false,"feedback":{"fr":"","en":"The indication requires the unit to be tested without waiting; the group test comes afterwards.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000319","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000319","tested_point":"QST.IAS36.000319","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C4"],"exercise":{"prompt":{"fr":"","en":"Belmonte holds 70% of a subsidiary that is a CGU. Non-controlling interests were measured at their proportionate share of identifiable net assets, so that the goodwill recognised relates only to the parent's share. Which carrying amount of the CGU must be compared with its recoverable amount?","es":""},"explanation":{"fr":"","en":"When non-controlling interests are measured at their proportionate share of identifiable net assets, the carrying amount of the CGU's goodwill is notionally grossed up for the goodwill attributable to those interests before being compared with the recoverable amount (IAS 36, para. C4). The recoverable amount covers the whole unit, including the non-controlling interests' unrecognised goodwill.","es":""},"common_error":{"fr":"","en":"Comparing the recoverable amount of the unit with the parent's goodwill only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of the identifiable net assets and of the goodwill recognised, without adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"Without the gross-up, a recoverable amount for the whole unit would be compared with incomplete goodwill: the loss would be understated.","es":""}},{"id":"B","text":{"fr":"","en":"A carrying amount in which goodwill is notionally grossed up for the share attributable to non-controlling interests.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"70% of the carrying amount of the CGU, to make it consistent with the parent's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount of the unit is not reduced: it is the goodwill that is completed.","es":""}},{"id":"D","text":{"fr":"","en":"The carrying amount of the identifiable net assets only, goodwill being tested separately.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is part of the carrying amount of the CGU tested; it is not tested on its own.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000320","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000705","tested_point":"VG.IAS36.000705","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C4","IAS 36 §C5","IAS 36 §C8"],"exercise":{"prompt":{"fr":"","en":"Calvène holds {ownership} of its subsidiary Rozel, which is a CGU. Non-controlling interests were measured at their proportionate share of identifiable net assets. At the year-end, the goodwill recognised amounts to {goodwill_recognised} and the carrying amount of Rozel's identifiable net assets to {net_assets}. The recoverable amount of the CGU is {recoverable_amount}. For the notional gross-up, the group extrapolates goodwill in proportion to the ownership percentage (given). Compute the grossed-up carrying amount of the CGU and the impairment loss recognised.","es":""},"explanation":{"fr":"","en":"Goodwill is notionally grossed up for the non-controlling interests' share (IAS 36, para. C4): 400,000 / 80% = 500,000, of which 100,000 of notional goodwill. Grossed-up carrying amount: 1,600,000 + 500,000 = 2,100,000. Loss: 2,100,000 − 1,700,000 = 400,000, charged first to goodwill (IAS 36, para. C5). Only the part relating to the goodwill recognised is recognised (IAS 36, para. C8): 400,000 × 80% = 320,000.","es":""},"common_error":{"fr":"","en":"Comparing 2,000,000 (without gross-up) with the recoverable amount and recognising 300,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"80","unit":"PERCENT"},{"id":"goodwill_recognised","value":"400000","unit":"EUR"},{"id":"net_assets","value":"1600000","unit":"EUR"},{"id":"recoverable_amount","value":"1700000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Parent's ownership percentage","es":""},"value":"80","unit":"PERCENT"},{"label":{"fr":"","en":"Goodwill recognised (parent's share)","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of identifiable net assets","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"1700000","unit":"EUR"}],"steps":[{"id":"GROSSED_UP_CARRYING_AMOUNT","label":{"fr":"","en":"Grossed-up carrying amount of the CGU","es":""},"answer":2100000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_RECOGNISED","label":{"fr":"","en":"Impairment loss recognised","es":""},"answer":320000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GROSSED_UP_CARRYING_AMOUNT","meaning":{"fr":"","en":"Grossed-up carrying amount of the CGU","es":""},"expression":"a + (b / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of identifiable net assets","es":""},"value":1600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill recognised (parent's share)","es":""},"value":400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Parent's ownership percentage","es":""},"value":80,"unit":"PERCENT"}],"result":2100000,"unit":"EUR"},{"step":"LOSS_RECOGNISED","meaning":{"fr":"","en":"Impairment loss recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill recognised (parent's share)","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Parent's ownership percentage","es":""},"value":80,"unit":"PERCENT"}],"result":320000,"unit":"EUR","rationale":{"fr":"","en":"Only the part relating to the goodwill recognised is recognised (IAS 36, para. C8): 400,000 × 80% = 320,000.","es":""}}],"references":["REF.IAS36.C4","REF.IAS36.C5","REF.IAS36.C8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000321","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000705","tested_point":"VG.IAS36.000705","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":360,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C4","IAS 36 §C5","IAS 36 §C8"],"exercise":{"prompt":{"fr":"","en":"The Estérel group acquired {ownership} of Mirabel, which on its own forms a CGU; minority interests were measured at the proportionate share of identifiable net assets. The goodwill in the consolidated statement of financial position is {goodwill_recognised}, Mirabel's identifiable net assets are carried at {net_assets} and the recoverable amount of the unit is estimated at {recoverable_amount}. Notional goodwill is obtained by extrapolating goodwill in proportion to the ownership percentage (given). No individual floor is binding (given). Determine the loss recognised on goodwill, the loss allocated to the other assets and the total loss recognised.","es":""},"explanation":{"fr":"","en":"Grossed-up goodwill (IAS 36, para. C4): 300,000 / 60% = 500,000. Grossed-up carrying amount: 2,000,000 + 500,000 = 2,500,000. Loss: 2,500,000 − 1,900,000 = 600,000, charged first to the grossed-up goodwill (500,000), then to the other assets for 100,000 (IAS 36, para. C5). Only the part relating to the goodwill recognised is recognised (IAS 36, para. C8): 500,000 × 60% = 300,000, which eliminates the goodwill recognised. Total loss recognised: 300,000 + 100,000 = 400,000.","es":""},"common_error":{"fr":"","en":"Charging to the identifiable assets the part of the loss relating to the notional goodwill.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"60","unit":"PERCENT"},{"id":"goodwill_recognised","value":"300000","unit":"EUR"},{"id":"net_assets","value":"2000000","unit":"EUR"},{"id":"recoverable_amount","value":"1900000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Percentage acquired by the group","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Goodwill in the consolidated statement of financial position","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Mirabel's identifiable net assets","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the unit","es":""},"value":"1900000","unit":"EUR"}],"steps":[{"id":"GOODWILL_LOSS_RECOGNISED","label":{"fr":"","en":"Loss recognised on goodwill","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"OTHER_ASSETS_LOSS","label":{"fr":"","en":"Loss allocated to the identifiable assets","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"TOTAL_LOSS_RECOGNISED","label":{"fr":"","en":"Total loss recognised","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_LOSS_RECOGNISED","meaning":{"fr":"","en":"Loss recognised on goodwill","es":""},"expression":"(a / b) * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill in the consolidated statement of financial position","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage acquired by the group","es":""},"value":60,"unit":"PERCENT"}],"result":300000,"unit":"EUR","rationale":{"fr":"","en":"Only the part relating to the goodwill recognised is recognised (IAS 36, para. C8): 500,000 × 60% = 300,000, which eliminates the goodwill recognised.","es":""}},{"step":"TOTAL_LOSS_RECOGNISED","meaning":{"fr":"","en":"Total loss recognised","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill in the consolidated statement of financial position","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss allocated to the identifiable assets","es":""},"value":100000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"references":["REF.IAS36.C4","REF.IAS36.C5","REF.IAS36.C8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000322","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000706","tested_point":"VG.IAS36.000706","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C6"],"exercise":{"prompt":{"fr":"","en":"Corbières holds {ownership} of its subsidiary Taurac, which on its own is a CGU. Non-controlling interests were measured at fair value under IFRS 3 (given): the goodwill recognised already includes their share and no notional gross-up is needed. Taurac's profit or loss is allocated in proportion to ownership percentages. The carrying amount of the CGU, including goodwill, is {carrying_amount} and its recoverable amount is {recoverable_amount}. Allocate the impairment loss between the parent and the non-controlling interests.","es":""},"explanation":{"fr":"","en":"Loss: 3,000,000 − 2,750,000 = 250,000. When a subsidiary with non-controlling interests is on its own a CGU, the loss is allocated between the parent and those interests on the same basis as profit or loss (IAS 36, para. C6): parent 250,000 × 70% = 175,000; non-controlling interests 250,000 × 30% = 75,000.","es":""},"common_error":{"fr":"","en":"Attributing the whole loss to the parent.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"70","unit":"PERCENT"},{"id":"carrying_amount","value":"3000000","unit":"EUR"},{"id":"recoverable_amount","value":"2750000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Parent's ownership percentage","es":""},"value":"70","unit":"PERCENT"},{"label":{"fr":"","en":"Carrying amount of the CGU, including goodwill","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"2750000","unit":"EUR"}],"steps":[{"id":"LOSS_PARENT","label":{"fr":"","en":"Loss attributed to the parent","es":""},"answer":175000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_NCI","label":{"fr":"","en":"Loss attributed to non-controlling interests","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_PARENT","meaning":{"fr":"","en":"Loss attributed to the parent","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the CGU, including goodwill","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":2750000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Parent's ownership percentage","es":""},"value":70,"unit":"PERCENT"}],"result":175000,"unit":"EUR","rationale":{"fr":"","en":"When a subsidiary with non-controlling interests is on its own a CGU, the loss is allocated between the parent and those interests on the same basis as profit or loss (IAS 36, para. C6): parent 250,000 × 70% = 175,000","es":""}}],"references":["REF.IAS36.C6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000323","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000706","tested_point":"VG.IAS36.000706","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C6","IAS 36","IAS 36 §C1"],"exercise":{"prompt":{"fr":"","en":"The Arvieux group controls the Solenne clinic, of which it owns {ownership} of the share capital; the clinic forms a separate CGU. Non-controlling interests, measured at fair value at acquisition (given), are therefore already included in the goodwill recognised. The shareholders' agreement provides for profit to be shared in proportion to the capital held. At the test date, the unit is carried at {carrying_amount}, including goodwill, while its recoverable amount is only {recoverable_amount}. What share of the loss goes to the group, and what share to the non-controlling interests?","es":""},"explanation":{"fr":"","en":"The test compares the recoverable amount of the unit with its carrying amount (IAS 36, para. C3): 1,800,000 − 1,560,000 = a loss of 240,000. As the subsidiary is on its own a CGU, the loss is allocated between the parent and the non-controlling interests on the profit-sharing basis (IAS 36, para. C6): group 240,000 × 65% = 156,000; non-controlling interests 240,000 × 35% = 84,000.","es":""},"common_error":{"fr":"","en":"Charging the loss to the non-controlling interests only because the goodwill includes their share.","es":""},"format":"CALCULATION","placeholders":[{"id":"ownership","value":"65","unit":"PERCENT"},{"id":"carrying_amount","value":"1800000","unit":"EUR"},{"id":"recoverable_amount","value":"1560000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Share of the capital held by the group","es":""},"value":"65","unit":"PERCENT"},{"label":{"fr":"","en":"Carrying amount of the unit, including goodwill","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the unit","es":""},"value":"1560000","unit":"EUR"}],"steps":[{"id":"LOSS_PARENT","label":{"fr":"","en":"Share of the loss attributed to the group (parent)","es":""},"answer":156000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_NCI","label":{"fr":"","en":"Share of the loss attributed to non-controlling interests","es":""},"answer":84000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_PARENT","meaning":{"fr":"","en":"Share of the loss attributed to the group (parent)","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the unit, including goodwill","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of the unit","es":""},"value":1560000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Share of the capital held by the group","es":""},"value":65,"unit":"PERCENT"}],"result":156000,"unit":"EUR","rationale":{"fr":"","en":"As the subsidiary is on its own a CGU, the loss is allocated between the parent and the non-controlling interests on the profit-sharing basis (IAS 36, para. C6): group 240,000 × 65% = 156,000","es":""}}],"references":["REF.IAS36.C6","REF.IAS36.C3"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000324","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000324","tested_point":"QST.IAS36.000324","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C7"],"exercise":{"prompt":{"fr":"","en":"The Network CGU of the Maubert group combines a wholly owned operation and the subsidiary Ondine, whose non-controlling interests were measured at fair value (no notional gross-up is needed). Before impairment, the CGU's goodwill relates to the wholly owned operation for {goodwill_wholly_owned} and to Ondine for {goodwill_subsidiary}. The test shows a loss of {goodwill_loss}, charged entirely to goodwill. Allocate this loss between the part without and the part with non-controlling interests.","es":""},"explanation":{"fr":"","en":"When the subsidiary is part of a larger CGU, the goodwill impairment loss is allocated between the parts with and without non-controlling interests on the basis of the relative carrying amounts of their goodwill before impairment (IAS 36, para. C7). Total goodwill: 600,000 + 300,000 = 900,000. Wholly owned part: 450,000 × 600,000 / 900,000 = 300,000; Ondine part: 450,000 × 300,000 / 900,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Charging the whole loss to the part with minority interests.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_wholly_owned","value":"600000","unit":"EUR"},{"id":"goodwill_subsidiary","value":"300000","unit":"EUR"},{"id":"goodwill_loss","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill relating to the wholly owned operation","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill relating to the subsidiary Ondine","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Impairment loss charged to the CGU's goodwill","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"LOSS_WHOLLY_OWNED_PART","label":{"fr":"","en":"Loss allocated to the wholly owned part","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_SUBSIDIARY_PART","label":{"fr":"","en":"Loss allocated to the Ondine part (with non-controlling interests)","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_WHOLLY_OWNED_PART","meaning":{"fr":"","en":"Loss allocated to the wholly owned part","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Impairment loss charged to the CGU's goodwill","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill relating to the wholly owned operation","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Goodwill relating to the subsidiary Ondine","es":""},"value":300000,"unit":"EUR"}],"result":300000,"unit":"EUR"},{"step":"LOSS_SUBSIDIARY_PART","meaning":{"fr":"","en":"Loss allocated to the Ondine part (with non-controlling interests)","es":""},"expression":"a * b / (c + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Impairment loss charged to the CGU's goodwill","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill relating to the subsidiary Ondine","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Goodwill relating to the wholly owned operation","es":""},"value":600000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"When the subsidiary is part of a larger CGU, the goodwill impairment loss is allocated between the parts with and without non-controlling interests on the basis of the relative carrying amounts of their goodwill before impairment (IAS 36, para. C7).","es":""},"references":["REF.IAS36.C7"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000325","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000325","tested_point":"QST.IAS36.000325","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C4","IAS 36 §C8"],"exercise":{"prompt":{"fr":"","en":"Peyrac holds 90% of its subsidiary Velay, which is a CGU; non-controlling interests were measured at the proportionate share of net assets. The goodwill recognised is 270,000, which corresponds, by extrapolation to the ownership percentage (given), to total goodwill of 300,000. Velay's identifiable net assets have a carrying amount of 1,200,000 and the recoverable amount of the unit is 1,380,000. The controller proposes recognising a loss of 120,000. What loss must be recognised?","es":""},"explanation":{"fr":"","en":"Carrying amount grossed up for notional goodwill (IAS 36, para. C4): 1,200,000 + 300,000 = 1,500,000. Loss computed: 1,500,000 − 1,380,000 = 120,000, charged to goodwill. The part relating to the non-controlling interests' notional goodwill (10%) is not recognised (IAS 36, para. C8): loss recognised 120,000 × 90% = 108,000.","es":""},"common_error":{"fr":"","en":"Recognising a loss on goodwill that is not in the consolidated statement of financial position.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"120,000, as proposed by the controller.","es":""},"correct":false,"feedback":{"fr":"","en":"The controller also recognises the loss relating to notional goodwill, which is not in the statement of financial position.","es":""}},{"id":"B","text":{"fr":"","en":"90,000, by comparing 1,470,000 with the recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Without the notional gross-up, the carrying amount of the unit is understated, and so is the loss.","es":""}},{"id":"C","text":{"fr":"","en":"108,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"12,000, i.e. the non-controlling interests' share.","es":""},"correct":false,"feedback":{"fr":"","en":"12,000 is the part of the loss relating to notional goodwill, precisely the part that is not recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000326","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000326","tested_point":"QST.IAS36.000326","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C4","IAS 36 §C1"],"exercise":{"prompt":{"fr":"","en":"The Hautvent group has two 75%-owned subsidiaries, each forming a CGU. For the subsidiary Lys, non-controlling interests were measured at their proportionate share of identifiable net assets; for the subsidiary Iris, they were measured at fair value. For which of these CGUs must goodwill be notionally grossed up before the impairment test?","es":""},"explanation":{"fr":"","en":"Goodwill measured under IFRS 3 includes the amount of non-controlling interests (IAS 36, para. C1): when they are measured at fair value, the goodwill recognised already includes their share. The notional gross-up applies only when they are measured at their proportionate share of identifiable net assets (IAS 36, para. C4), which is the case for Lys.","es":""},"common_error":{"fr":"","en":"Grossing up the goodwill of every subsidiary, whatever the measurement method used.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For both CGUs, because any subsidiary with non-controlling interests requires a gross-up.","es":""},"correct":false,"feedback":{"fr":"","en":"The gross-up depends on how non-controlling interests are measured, not merely on their existence.","es":""}},{"id":"B","text":{"fr":"","en":"For the Lys CGU only.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"For the Iris CGU only, whose non-controlling interests are measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"At Iris, measurement at fair value already includes the minority interests' share in goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"For neither: the notional gross-up only serves disclosure in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The notional gross-up is used to compute the impairment loss, not only for the notes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000327","standard_id":"IAS36","concept_ids":["IAS36.GOODWILL.NON_CONTROLLING_INTERESTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000327","tested_point":"QST.IAS36.000327","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000013","section_id":"nci-rule"},"references":["IAS 36 §C6"],"exercise":{"prompt":{"fr":"","en":"The subsidiary Brasque, 75% owned by Ourcq, is on its own a CGU; its non-controlling interests were measured at fair value. This year's test shows an impairment loss. On what basis is the loss allocated between the parent and the non-controlling interests?","es":""},"explanation":{"fr":"","en":"When a subsidiary with non-controlling interests is on its own a CGU, the impairment loss is allocated between the parent and those interests on the same basis as that used to allocate profit or loss (IAS 36, para. C6).","es":""},"common_error":{"fr":"","en":"Attributing the whole loss to the parent.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entirely to the parent, which controls the subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"Control does not make the parent bear the whole loss: the profit-sharing basis applies.","es":""}},{"id":"B","text":{"fr":"","en":"In proportion to the carrying amounts of the subsidiary's identifiable assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amounts of the assets are used to allocate the loss between assets, not between shareholders.","es":""}},{"id":"C","text":{"fr":"","en":"Equally between the parent and the non-controlling interests.","es":""},"correct":false,"feedback":{"fr":"","en":"No equal split is provided for: the key is the profit-sharing basis.","es":""}},{"id":"D","text":{"fr":"","en":"On the same basis as the subsidiary's profit or loss is allocated.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000328","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000328","tested_point":"QST.IAS36.000328","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §100"],"exercise":{"prompt":{"fr":"","en":"The Altaïs group has three CGUs: a fruit juice plant, a soft drinks plant and a distribution platform. Which of the following is a corporate asset for these CGUs?","es":""},"explanation":{"fr":"","en":"Corporate assets are group or divisional assets, such as the headquarters building, IT equipment or a research centre, that do not generate independent cash flows and whose carrying amount cannot be fully attributed to the CGU under review; the structure of the entity determines whether an asset qualifies (IAS 36, para. 100). The central IT system serving the three units fits this description.","es":""},"common_error":{"fr":"","en":"Classifying any significant asset of a unit as a corporate asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The bottling lines of the soft drinks plant, used by that plant only.","es":""},"correct":false,"feedback":{"fr":"","en":"These lines belong entirely to a single CGU: their carrying amount is fully attributable to it.","es":""}},{"id":"B","text":{"fr":"","en":"The goodwill allocated to the fruit juice plant on its acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is subject to its own rules; it is not a corporate asset.","es":""}},{"id":"C","text":{"fr":"","en":"The central IT system that serves the three units.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The finished goods inventories stored at the distribution platform.","es":""},"correct":false,"feedback":{"fr":"","en":"These inventories belong to a single unit, the platform; they do not serve the other CGUs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000329","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000329","tested_point":"QST.IAS36.000329","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §101"],"exercise":{"prompt":{"fr":"","en":"Corvane's headquarters building shows an indication of impairment following a sharp fall in office property prices in its city. The company has not decided to dispose of the building, which serves all its CGUs. How must it proceed?","es":""},"explanation":{"fr":"","en":"Because a corporate asset does not generate separate cash inflows, its recoverable amount cannot be estimated on its own, unless the entity has decided to dispose of it. When there is an indication, the recoverable amount of the CGU or group of CGUs to which it belongs is determined (IAS 36, para. 101).","es":""},"common_error":{"fr":"","en":"Looking for a value in use specific to a corporate asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Estimate the value in use of the headquarters on its own, from the cash flows it would generate alone.","es":""},"correct":false,"feedback":{"fr":"","en":"The headquarters has no cash flows of its own: its value in use cannot be estimated on its own.","es":""}},{"id":"B","text":{"fr":"","en":"Determine the recoverable amount of the CGU or group of CGUs to which the headquarters belongs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Do nothing: a corporate asset generates no cash flows and therefore can never be impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of separate cash flows moves the test to the CGU or group of CGUs; it does not exempt the entity from testing.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise a loss equal to the estimated fall in office property prices, without any further test.","es":""},"correct":false,"feedback":{"fr":"","en":"The fall in prices is an indication, not a measure of the loss: the CGU or group of CGUs concerned must be tested.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000330","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000707","tested_point":"VG.IAS36.000707","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"Ravel has two CGUs, A and B, served by a headquarters with a carrying amount of {hq_carrying}. Management considers it reasonable and consistent to allocate the headquarters in proportion to the carrying amounts of the units (given): {cgu_a_carrying} for A and {cgu_b_carrying} for B. An indication of impairment arises for CGU A, whose recoverable amount is {cgu_a_recoverable}. Compute the share of the headquarters allocated to A and the impairment loss of A.","es":""},"explanation":{"fr":"","en":"When a portion of the corporate asset can be allocated to the CGU on a reasonable and consistent basis, the carrying amount of the unit, including that portion, is compared with its recoverable amount (IAS 36, para. 102). Share of A: 600,000 × 1,000,000 / (1,000,000 + 2,000,000) = 200,000. Carrying amount of A: 1,000,000 + 200,000 = 1,200,000. Loss: 1,200,000 − 1,150,000 = 50,000.","es":""},"common_error":{"fr":"","en":"Testing A without any share of the headquarters and concluding that there is no loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"hq_carrying","value":"600000","unit":"EUR"},{"id":"cgu_a_carrying","value":"1000000","unit":"EUR"},{"id":"cgu_b_carrying","value":"2000000","unit":"EUR"},{"id":"cgu_a_recoverable","value":"1150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the headquarters","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of CGU A (excluding headquarters)","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of CGU B (excluding headquarters)","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of CGU A","es":""},"value":"1150000","unit":"EUR"}],"steps":[{"id":"HQ_SHARE_A","label":{"fr":"","en":"Share of the headquarters allocated to CGU A","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_A","label":{"fr":"","en":"Impairment loss of CGU A","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"HQ_SHARE_A","meaning":{"fr":"","en":"Share of the headquarters allocated to CGU A","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the headquarters","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of CGU A (excluding headquarters)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of CGU B (excluding headquarters)","es":""},"value":2000000,"unit":"EUR"}],"result":200000,"unit":"EUR"},{"step":"LOSS_A","meaning":{"fr":"","en":"Impairment loss of CGU A","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of CGU A (excluding headquarters)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the headquarters allocated to CGU A","es":""},"value":200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount of CGU A","es":""},"value":1150000,"unit":"EUR"}],"result":50000,"unit":"EUR"}],"rationale":{"fr":"","en":"When a portion of the corporate asset can be allocated to the CGU on a reasonable and consistent basis, the carrying amount of the unit, including that portion, is compared with its recoverable amount (IAS 36, para. 102).","es":""},"references":["REF.IAS36.102"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000331","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000707","tested_point":"VG.IAS36.000707","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"The Bellerive group operates three branch networks (CGUs X, Y and Z) that share an IT platform with a carrying amount of {it_carrying}. After analysis, the key considered reasonable and consistent for allocating the platform is the number of connected workstations (given): {users_x} for X, {users_y} for Y and {users_z} for Z. Network Y, whose own assets have a carrying amount of {carrying_y}, loses a framework contract; its recoverable amount is estimated at {recoverable_y}. Compute the share of the platform allocated to Y and the impairment loss of Y.","es":""},"explanation":{"fr":"","en":"The platform is a corporate asset of which a portion can be allocated to Y on a reasonable and consistent basis; Y is therefore tested including that portion (IAS 36, para. 102). Share of Y: 900,000 × 200 / (300 + 200 + 100) = 300,000. Carrying amount of Y: 1,000,000 + 300,000 = 1,300,000. Loss: 1,300,000 − 1,180,000 = 120,000.","es":""},"common_error":{"fr":"","en":"Comparing 1,000,000 with the recoverable amount and concluding that there is no loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"it_carrying","value":"900000","unit":"EUR"},{"id":"users_x","value":"300","unit":"UNITS"},{"id":"users_y","value":"200","unit":"UNITS"},{"id":"users_z","value":"100","unit":"UNITS"},{"id":"carrying_y","value":"1000000","unit":"EUR"},{"id":"recoverable_y","value":"1180000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the IT platform","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Connected workstations of CGU X","es":""},"value":"300","unit":"UNITS"},{"label":{"fr":"","en":"Connected workstations of CGU Y","es":""},"value":"200","unit":"UNITS"},{"label":{"fr":"","en":"Connected workstations of CGU Z","es":""},"value":"100","unit":"UNITS"},{"label":{"fr":"","en":"Carrying amount of CGU Y's own assets","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of CGU Y","es":""},"value":"1180000","unit":"EUR"}],"steps":[{"id":"IT_SHARE_Y","label":{"fr":"","en":"Share of the platform allocated to Y","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_Y","label":{"fr":"","en":"Impairment loss of CGU Y","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IT_SHARE_Y","meaning":{"fr":"","en":"Share of the platform allocated to Y","es":""},"expression":"a * b / (c + b + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the IT platform","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Connected workstations of CGU Y","es":""},"value":200,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Connected workstations of CGU X","es":""},"value":300,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Connected workstations of CGU Z","es":""},"value":100,"unit":"UNITS"}],"result":300000,"unit":"EUR"},{"step":"LOSS_Y","meaning":{"fr":"","en":"Impairment loss of CGU Y","es":""},"expression":"(a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of CGU Y's own assets","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the platform allocated to Y","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount of CGU Y","es":""},"value":1180000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"references":["REF.IAS36.102"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000332","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000332","tested_point":"QST.IAS36.000332","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":360,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §102","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Fontcaude has two CGUs, M and N, which use a research centre with a carrying amount of {research_centre}. No reasonable and consistent basis allows a portion of the centre to be allocated to each unit, but it can be allocated to the group formed by M and N. Test data: M, carrying amount {carrying_m} and recoverable amount {recoverable_m}; N, carrying amount {carrying_n} and recoverable amount {recoverable_n}; recoverable amount of the group M + N: {group_recoverable}. Compute the loss of CGU N, then the additional loss identified at group level.","es":""},"explanation":{"fr":"","en":"When the corporate asset cannot be allocated to the unit on a reasonable and consistent basis, the unit is first tested excluding the corporate asset, then the smallest group of units to which a portion can be allocated is tested (IAS 36, para. 102). M: 800,000 against 850,000, no loss. N: 1,200,000 − 1,100,000 = a loss of 100,000, recognised (IAS 36, para. 104). Group: 800,000 + 1,100,000 + 400,000 = 2,300,000, against 2,150,000, giving an additional loss of 150,000.","es":""},"common_error":{"fr":"","en":"Testing the group with N at 1,200,000 and reporting a group loss of 250,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_m","value":"800000","unit":"EUR"},{"id":"recoverable_m","value":"850000","unit":"EUR"},{"id":"carrying_n","value":"1200000","unit":"EUR"},{"id":"recoverable_n","value":"1100000","unit":"EUR"},{"id":"research_centre","value":"400000","unit":"EUR"},{"id":"group_recoverable","value":"2150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of CGU M (excluding the research centre)","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of CGU M","es":""},"value":"850000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of CGU N (excluding the research centre)","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of CGU N","es":""},"value":"1100000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the research centre","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the group M + N","es":""},"value":"2150000","unit":"EUR"}],"steps":[{"id":"LOSS_N","label":{"fr":"","en":"Impairment loss of CGU N","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_GROUP","label":{"fr":"","en":"Additional loss at group level","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_N","meaning":{"fr":"","en":"Impairment loss of CGU N","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of CGU N (excluding the research centre)","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Recoverable amount of CGU N","es":""},"value":1100000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"When the corporate asset cannot be allocated to the unit on a reasonable and consistent basis, the unit is first tested excluding the corporate asset, then the smallest group of units to which a portion can be allocated is tested (IAS 36, para. 102).","es":""},"references":["REF.IAS36.102","REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000333","standard_id":"IAS36","concept_ids":["IAS36.CORPORATE_ASSETS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000333","tested_point":"QST.IAS36.000333","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000014","section_id":"rule"},"references":["IAS 36 §101","IAS 36 §102"],"exercise":{"prompt":{"fr":"","en":"Mareuil operates a data centre that serves its two CGUs, Insurance and Brokerage. A new technology makes some of the servers obsolete: there is an indication of impairment. The company does not plan to dispose of the centre, and usage measured in computing hours provides a reasonable and consistent basis for allocating it. The treasurer proposes estimating a value in use specific to the data centre by attributing to it an estimated share of the two units' cash flows. Which approach should be adopted?","es":""},"explanation":{"fr":"","en":"A corporate asset does not generate cash flows of its own: its recoverable amount cannot be estimated on its own, unless a disposal has been decided, and the test is carried out on the units to which it belongs (IAS 36, para. 101). When a portion can be allocated on a reasonable and consistent basis, each unit is tested including that portion in its carrying amount (IAS 36, para. 102).","es":""},"common_error":{"fr":"","en":"Building an artificial value in use for an asset with no cash flows of its own.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use the value in use proposed by the treasurer, as the centre is essential to both units.","es":""},"correct":false,"feedback":{"fr":"","en":"Attributing to the centre a share of the units' cash flows does not create cash flows of its own: its recoverable amount cannot be estimated on its own.","es":""}},{"id":"B","text":{"fr":"","en":"Test the two CGUs without the data centre, which need not be included in their carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Leaving the centre out of the units' carrying amounts means its value is never tested.","es":""}},{"id":"C","text":{"fr":"","en":"Allocate a portion of the centre to each CGU on computing hours, then test each CGU including that portion.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Wait for a decision to dispose of the data centre, the only situation in which it can be tested.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a decision to dispose does not exempt the entity from testing: the test is performed at unit level.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000335","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000335","tested_point":"QST.IAS36.000335","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"Varenne Industrie recognises an impairment loss on a cash-generating unit (CGU) to which goodwill has been allocated. How should this loss be allocated among the assets of the unit?","es":""},"explanation":{"fr":"","en":"A CGU's impairment loss is allocated first to the goodwill allocated to the unit; any remainder is then spread over the other assets of the unit pro rata to their carrying amounts, each reduction being treated as an impairment loss on an individual asset (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Including goodwill in the pro rata allocation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Pro rata to the carrying amount of all the assets of the unit, goodwill included.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is not part of the pro rata: it absorbs the loss first.","es":""}},{"id":"B","text":{"fr":"","en":"First to the allocated goodwill, then to the other assets pro rata to their carrying amounts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"First to the tangible assets pro rata to their carrying amounts, goodwill being reduced only as a last step.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is reversed: goodwill is reduced first.","es":""}},{"id":"D","text":{"fr":"","en":"To goodwill only, even when the loss exceeds its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill cannot absorb more than its carrying amount; the remainder goes to the other assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000336","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000336","tested_point":"QST.IAS36.000336","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"When allocating the impairment loss of a CGU of Brévent Logistique, the pro rata share would reduce a warehouse below its fair value less costs of disposal, which is measurable. What does IAS 36 require?","es":""},"explanation":{"fr":"","en":"When allocating, no asset may be reduced below the highest of its fair value less costs of disposal (if measurable), its value in use (if determinable) and zero; the part of the loss that cannot be allocated to it is spread pro rata over the other assets of the unit (IAS 36, para. 105).","es":""},"common_error":{"fr":"","en":"Reducing an asset below its floor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The warehouse is not reduced below the highest of that amount, its value in use if determinable and zero; the remainder goes pro rata to the other assets.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The warehouse takes its full pro rata share, the floor applying to goodwill only.","es":""},"correct":false,"feedback":{"fr":"","en":"The floor applies to every asset of the unit, not to goodwill only.","es":""}},{"id":"C","text":{"fr":"","en":"The warehouse is limited to its fair value less costs of disposal and the unallocated part is simply dropped, with no further entry.","es":""},"correct":false,"feedback":{"fr":"","en":"The remainder is not dropped: it is spread over the other assets.","es":""}},{"id":"D","text":{"fr":"","en":"The part not allocated to the warehouse is transferred in full to goodwill, even if goodwill is already reduced to zero.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is served first; the remainder arising from the floor goes to the other assets, pro rata.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000337","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000801","tested_point":"VG.IAS36.000801","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The Harbour Cannery CGU of Halvard Foods comprises goodwill of {goodwill_ca}, a building with a carrying amount of {building_ca} and machinery with a carrying amount of {machinery_ca}. Its recoverable amount is estimated at {recoverable_amount}. No individual floor is binding. Calculate the loss allocated to goodwill, to the building and to the machinery.","es":""},"explanation":{"fr":"","en":"Carrying amount of the CGU: 40,000 + 300,000 + 200,000 = 540,000; loss: 540,000 − 400,000 = 140,000. Goodwill first absorbs 40,000; the remaining 100,000 is spread pro rata to the carrying amounts of the other assets: building 100,000 × 300 / 500 = 60,000; machinery 100,000 × 200 / 500 = 40,000 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Spreading the 140,000 pro rata over the three assets, goodwill included.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"40000","unit":"EUR"},{"id":"building_ca","value":"300000","unit":"EUR"},{"id":"machinery_ca","value":"200000","unit":"EUR"},{"id":"recoverable_amount","value":"400000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the building","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the machinery","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"LOSS_GOODWILL","label":{"fr":"","en":"Loss allocated to goodwill","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_BUILDING","label":{"fr":"","en":"Loss allocated to the building","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_MACHINERY","label":{"fr":"","en":"Loss allocated to the machinery","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000338","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000801","tested_point":"VG.IAS36.000801","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"A store of the Maison Ardent chain is a CGU. It carries goodwill of {goodwill_ca}, fit-out of {fit_out_ca}, equipment of {equipment_ca} and checkout software of {software_ca} (carrying amounts). After a competitor opens nearby, the recoverable amount of the store falls to {recoverable_amount}. No individual floor is binding. Determine the loss allocated to the fit-out and the carrying amount of the equipment after the allocation.","es":""},"explanation":{"fr":"","en":"Carrying amount of the store: 25,000 + 120,000 + 80,000 + 40,000 = 265,000; loss: 265,000 − 192,000 = 73,000. Goodwill absorbs 25,000; the remaining 48,000 is spread pro rata over the 240,000 of other assets, i.e. 20% of each: fit-out 24,000, equipment 16,000, software 8,000. The equipment becomes 80,000 − 16,000 = 64,000 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Spreading the 73,000 loss without serving goodwill first.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"25000","unit":"EUR"},{"id":"fit_out_ca","value":"120000","unit":"EUR"},{"id":"equipment_ca","value":"80000","unit":"EUR"},{"id":"software_ca","value":"40000","unit":"EUR"},{"id":"recoverable_amount","value":"192000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Fit-out","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Equipment","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Checkout software","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the store","es":""},"value":"192000","unit":"EUR"}],"steps":[{"id":"LOSS_FIT_OUT","label":{"fr":"","en":"Loss allocated to the fit-out","es":""},"answer":24000,"tolerance":0,"unit":"EUR"},{"id":"EQUIPMENT_CA_AFTER","label":{"fr":"","en":"Carrying amount of the equipment after allocation","es":""},"answer":64000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000339","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000802","tested_point":"VG.IAS36.000802","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"The Saint-Aubin Plant CGU of Corvel Métal comprises: goodwill {goodwill_ca}, production plant {plant_ca} (fair value less costs of disposal: {plant_fvlcd}), vehicles {vehicles_ca} and furniture {furniture_ca} (carrying amounts). The recoverable amount of the unit is {recoverable_amount}. The value in use of the plant cannot be determined; for the vehicles and the furniture, neither fair value less costs of disposal nor value in use can be determined. Calculate the loss allocated to the plant, to the vehicles and to the furniture.","es":""},"explanation":{"fr":"","en":"Carrying amount of the CGU: 390,000; loss: 390,000 − 270,000 = 120,000. Goodwill absorbs 30,000 (IAS 36, para. 104). Spreading the remaining 90,000 pro rata over the 360,000 of other assets would give: plant 60,000, vehicles 20,000, furniture 10,000. But the plant cannot go below 210,000: its loss is limited to 240,000 − 210,000 = 30,000. The remaining 30,000 is spread pro rata between vehicles and furniture (80 / 40): 20,000 and 10,000 (IAS 36, para. 105). Final losses: plant 30,000, vehicles 40,000, furniture 20,000.","es":""},"common_error":{"fr":"","en":"Allocating 60,000 to the plant and taking it below its floor.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"30000","unit":"EUR"},{"id":"plant_ca","value":"240000","unit":"EUR"},{"id":"plant_fvlcd","value":"210000","unit":"EUR"},{"id":"vehicles_ca","value":"80000","unit":"EUR"},{"id":"furniture_ca","value":"40000","unit":"EUR"},{"id":"recoverable_amount","value":"270000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Production plant","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal of the plant","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Vehicles","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Furniture","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the CGU","es":""},"value":"270000","unit":"EUR"}],"steps":[{"id":"LOSS_PLANT","label":{"fr":"","en":"Loss allocated to the plant","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_VEHICLES","label":{"fr":"","en":"Loss allocated to the vehicles","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_FURNITURE","label":{"fr":"","en":"Loss allocated to the furniture","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LOSS_PLANT","meaning":{"fr":"","en":"Loss allocated to the plant","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Production plant","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value less costs of disposal of the plant","es":""},"value":210000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS36.104","REF.IAS36.105"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000340","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000802","tested_point":"VG.IAS36.000802","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":330,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"A mountain hotel operated by Altissimo Resorts forms a CGU. After two seasons without snow, its recoverable amount is estimated at {recoverable_amount}. Carrying amounts: goodwill {goodwill_ca}, building {building_ca}, furniture {furniture_ca} and IT system {it_ca}. A firm purchase offer makes it possible to establish the building's fair value less costs of disposal at {building_fvlcd}; no floor other than zero can be determined for the furniture and the IT system. Calculate the final loss allocated to the building, to the furniture and to the IT system.","es":""},"explanation":{"fr":"","en":"Carrying amount: 50,000 + 400,000 + 150,000 + 50,000 = 650,000; loss: 650,000 − 480,000 = 170,000. Goodwill absorbs 50,000 (IAS 36, para. 104). The remaining 120,000, i.e. 20% of the 600,000 of other assets, would give: building 80,000, furniture 30,000, IT 10,000. The building cannot go below 380,000: its loss is limited to 20,000 and the remaining 60,000 is spread pro rata over furniture and IT (150 / 50): 45,000 and 15,000 (IAS 36, para. 105). Final losses: building 20,000, furniture 30,000 + 45,000 = 75,000, IT 10,000 + 15,000 = 25,000.","es":""},"common_error":{"fr":"","en":"Allocating 80,000 to the building.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"50000","unit":"EUR"},{"id":"building_ca","value":"400000","unit":"EUR"},{"id":"building_fvlcd","value":"380000","unit":"EUR"},{"id":"furniture_ca","value":"150000","unit":"EUR"},{"id":"it_ca","value":"50000","unit":"EUR"},{"id":"recoverable_amount","value":"480000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Building","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value less costs of disposal of the building","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Furniture","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"IT system","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the hotel","es":""},"value":"480000","unit":"EUR"}],"steps":[{"id":"LOSS_BUILDING","label":{"fr":"","en":"Loss allocated to the building","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_FURNITURE","label":{"fr":"","en":"Loss allocated to the furniture","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_IT","label":{"fr":"","en":"Loss allocated to the IT system","es":""},"answer":25000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000341","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"CALCULATION","context":"V1_QST.IAS36.000341","tested_point":"QST.IAS36.000341","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The online travel agency Ventolia is a CGU carrying goodwill of {goodwill_ca} and other assets with a total carrying amount of {other_assets_ca}. Its recoverable amount is {recoverable_amount}. Calculate the carrying amount of goodwill after impairment and the loss allocated to the other assets.","es":""},"explanation":{"fr":"","en":"Carrying amount of the unit: 60,000 + 340,000 = 400,000; loss: 400,000 − 355,000 = 45,000. As the loss is lower than goodwill, it is allocated entirely to goodwill: 60,000 − 45,000 = 15,000. The other assets bear no loss, i.e. 0 (IAS 36, para. 104).","es":""},"common_error":{"fr":"","en":"Spreading the 45,000 pro rata between goodwill and the other assets.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"60000","unit":"EUR"},{"id":"other_assets_ca","value":"340000","unit":"EUR"},{"id":"recoverable_amount","value":"355000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Other assets of the unit","es":""},"value":"340000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"355000","unit":"EUR"}],"steps":[{"id":"GOODWILL_AFTER","label":{"fr":"","en":"Carrying amount of goodwill after impairment","es":""},"answer":15000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_OTHER_ASSETS","label":{"fr":"","en":"Loss allocated to the other assets","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_AFTER","meaning":{"fr":"","en":"Carrying amount of goodwill after impairment","es":""},"expression":"a - ((a + b) - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Other assets of the unit","es":""},"value":340000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Recoverable amount","es":""},"value":355000,"unit":"EUR"}],"result":15000,"unit":"EUR"}],"references":["REF.IAS36.104"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000345","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000345","tested_point":"QST.IAS36.000345","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §105","IAS 36 §108"],"exercise":{"prompt":{"fr":"","en":"Quillan Énergies has allocated the loss of its Hydro Plant CGU: goodwill is reduced to zero and every other asset is already at its floor (the highest of its fair value less costs of disposal, its value in use and zero). A remaining loss of 30,000 is still unallocated. No other standard requires a liability to be recognised for it. What should the entity do?","es":""},"explanation":{"fr":"","en":"No asset may be reduced below the highest of its fair value less costs of disposal, its value in use and zero (IAS 36, para. 105). When the loss could not be fully allocated, a liability is recognised for the remainder only if another standard requires it (IAS 36, para. 108). Here no other standard requires it: the 30,000 gives rise to no entry.","es":""},"common_error":{"fr":"","en":"Recognising a provision for the unallocated loss without a basis in another standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a provision of 30,000 for the unallocated loss.","es":""},"correct":false,"feedback":{"fr":"","en":"A liability is recognised for the remainder only if another standard requires it, which is not the case here.","es":""}},{"id":"B","text":{"fr":"","en":"Reduce the assets below their floors, pro rata to their carrying amounts, to absorb the 30,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The floors are mandatory: no asset goes below the highest of the three amounts.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise nothing further: no reduction below the floors and no liability.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise negative goodwill of 30,000 attached to the unit, to be reversed in later tests.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides for no negative goodwill to absorb a remaining loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000346","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.ALLOCATION","IAS36.IMPAIRMENT_LOSS.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000346","tested_point":"QST.IAS36.000346","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"cost-asset-rule"},"references":["IAS 36 §104","IAS 36 §60"],"exercise":{"prompt":{"fr":"","en":"The Valbonne Spa CGU of Aquaval includes a building measured under the revaluation model, with a revaluation surplus of 40,000. The allocation of the unit's impairment loss assigns a share of 25,000 to the building. How is this share treated?","es":""},"explanation":{"fr":"","en":"The reductions resulting from allocating a CGU's impairment loss are treated as impairment losses on individual assets (IAS 36, para. 104). An impairment loss on a revalued asset is treated as a revaluation decrease under the standard applicable to that asset, not as an immediate expense (IAS 36, para. 60). The share of 25,000 therefore follows that treatment.","es":""},"common_error":{"fr":"","en":"Expensing the whole loss of the unit without looking at the measurement model of each asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an expense, like the goodwill share, since the loss was determined at the level of the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation results in losses on individual assets: the revalued building follows its own treatment.","es":""}},{"id":"B","text":{"fr":"","en":"As an impairment loss on the building taken individually, treated as a revaluation decrease under the applicable standard.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is not recognised, as an impairment loss cannot affect a revalued asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A revalued asset can be impaired; only the recognition differs.","es":""}},{"id":"D","text":{"fr":"","en":"It is transferred to the unit's goodwill in order to preserve the building's revaluation surplus.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is served first, but the building's share is not sent back to goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000347","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000347","tested_point":"QST.IAS36.000347","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"undeterminable"},"references":["IAS 36"],"exercise":{"prompt":{"fr":"","en":"An extruder of Ternay Plastiques has been damaged but is still working. Its value in use cannot be estimated individually, because it does not generate independent cash inflows, and its fair value less costs of disposal is below its carrying amount. The CGU to which it belongs is not impaired. What treatment applies to the extruder?","es":""},"explanation":{"fr":"","en":"When the recoverable amount of an individual asset cannot be determined, no impairment loss is recognised for that asset if the CGU to which it belongs is not impaired, even if its fair value less costs of disposal is below its carrying amount (IAS 36, para. 107).","es":""},"common_error":{"fr":"","en":"Impairing the damaged asset although its unit is not impaired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Write it down to its fair value less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value less costs of disposal alone is not enough: the unit is not impaired.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no impairment loss on the extruder.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Impair the whole CGU by the shortfall observed on the extruder.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit is not impaired: no loss is allocated to it.","es":""}},{"id":"D","text":{"fr":"","en":"Write it down to zero, as its value in use cannot be determined.","es":""},"correct":false,"feedback":{"fr":"","en":"A value in use that cannot be determined does not lead to writing the asset down to zero.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000348","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000348","tested_point":"QST.IAS36.000348","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"undeterminable"},"references":["IAS 36"],"exercise":{"prompt":{"fr":"","en":"Orvalis operates a bottling line that is a CGU: carrying amount 900,000, recoverable amount 1,050,000. A labelling machine on the line, with a carrying amount of 90,000, has been damaged; its fair value less costs of disposal is 55,000 and its value in use cannot be estimated separately. What impairment loss should be recognised on the labelling machine?","es":""},"explanation":{"fr":"","en":"As the recoverable amount of the labelling machine cannot be determined, the CGU is considered: its recoverable amount (1,050,000) exceeds its carrying amount (900,000), so it is not impaired. In that case no loss is recognised on the asset, even if its fair value less costs of disposal (55,000) is below its carrying amount (IAS 36, para. 107).","es":""},"common_error":{"fr":"","en":"Recognising a loss of 35,000 based on fair value less costs of disposal alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of 35,000, to bring the labelling machine down to its fair value less costs of disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Wrong: as the unit is not impaired, the machine's fair value less costs of disposal triggers no loss.","es":""}},{"id":"B","text":{"fr":"","en":"No impairment loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A loss of 90,000, as the value in use of the labelling machine cannot be determined.","es":""},"correct":false,"feedback":{"fr":"","en":"A value in use that cannot be determined does not mean a nil value.","es":""}},{"id":"D","text":{"fr":"","en":"A loss of 35,000 spread pro rata over all the assets of the line.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit is not impaired: there is no loss to allocate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000349","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000349","tested_point":"QST.IAS36.000349","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36","IAS 36 §104"],"exercise":{"prompt":{"fr":"","en":"The Foundry Workshop CGU of Malbrun, with no goodwill, comprises a furnace with a carrying amount of 100,000 and other assets of 300,000. Its recoverable amount is 320,000. The furnace is damaged: its value in use cannot be estimated individually and its fair value less costs of disposal is 70,000. No other asset has a binding floor. What impairment loss should be recognised on the furnace?","es":""},"explanation":{"fr":"","en":"Carrying amount of the unit: 400,000; loss: 400,000 − 320,000 = 80,000, spread pro rata to carrying amounts as there is no goodwill: furnace 80,000 × 100 / 400 = 20,000 (IAS 36, para. 104). The furnace is reduced to 80,000. As its recoverable amount cannot be determined, its loss is the excess of its carrying amount over the higher of its fair value less costs of disposal (70,000) and the result of the allocation (80,000), i.e. 100,000 − 80,000 = 20,000 (IAS 36, para. 107).","es":""},"common_error":{"fr":"","en":"Bringing the furnace straight down to its fair value less costs of disposal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"30,000: the furnace is brought down to its fair value less costs of disposal of 70,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The floor is the higher of the two amounts: the result of the allocation (80,000) prevails over 70,000.","es":""}},{"id":"B","text":{"fr":"","en":"20,000, its share of the unit's loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"None, since the value in use of the furnace cannot be determined.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit is impaired: the furnace bears its share of the loss.","es":""}},{"id":"D","text":{"fr":"","en":"80,000, i.e. the whole loss of the unit, allocated to the damaged asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit's loss is spread pro rata over all its assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000350","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000350","tested_point":"QST.IAS36.000350","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"undeterminable"},"references":["IAS 36"],"exercise":{"prompt":{"fr":"","en":"Under IAS 36, when the recoverable amount of an individual asset cannot be determined and its CGU is impaired, in which case is an impairment loss recognised on that asset?","es":""},"explanation":{"fr":"","en":"For an asset whose recoverable amount cannot be determined, a loss is recognised when its carrying amount exceeds the higher of its fair value less costs of disposal and the result of allocating the unit's loss; no loss is recognised if the unit is not impaired (IAS 36, para. 107).","es":""},"common_error":{"fr":"","en":"Using the lower of the two amounts, which over-impairs the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as its carrying amount exceeds its fair value less costs of disposal, whatever the situation of the unit.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit's situation matters: if the unit is not impaired, there is no loss on the asset.","es":""}},{"id":"B","text":{"fr":"","en":"Never: an asset without its own recoverable amount cannot be impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset can be impaired, by reference to net fair value and the allocation.","es":""}},{"id":"C","text":{"fr":"","en":"If its carrying amount exceeds the higher of its net fair value and the result of the allocation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"If its carrying amount exceeds the lower of its fair value less costs of disposal and the result of the allocation.","es":""},"correct":false,"feedback":{"fr":"","en":"The threshold is the higher of the two amounts, not the lower.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000351","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000351","tested_point":"QST.IAS36.000351","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36","IAS 36 §105"],"exercise":{"prompt":{"fr":"","en":"The Cutting Line CGU of Pellerin Bois, with no goodwill, comprises an industrial saw with a carrying amount of 80,000 and other assets of 120,000. Its recoverable amount is 100,000. The value in use of the saw cannot be estimated individually; its fair value less costs of disposal is 55,000. The other assets have no binding floor. What is the carrying amount of the saw after impairment?","es":""},"explanation":{"fr":"","en":"Loss of the unit: 200,000 − 100,000 = 100,000, i.e. half of the carrying amounts. Pro rata, the saw would take 40,000 and fall to 40,000, below its fair value less costs of disposal of 55,000. It cannot go below that floor: its loss is limited to 25,000 and the remaining 15,000 is spread over the other assets (IAS 36, para. 105). The saw, whose recoverable amount cannot be determined, is thus carried at the higher of its net fair value and the result of the allocation, i.e. 55,000 (IAS 36, para. 107).","es":""},"common_error":{"fr":"","en":"Applying the pro rata without testing the saw's floor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"40,000, after allocating half of the unit's loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The pro rata would take the saw below its floor of 55,000: it must be limited.","es":""}},{"id":"B","text":{"fr":"","en":"55,000, the remainder being pushed to the other assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"80,000, as no loss is possible without its own value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit is impaired: the saw bears a loss, within the limit of its floor.","es":""}},{"id":"D","text":{"fr":"","en":"25,000, the amount of the loss borne by the saw.","es":""},"correct":false,"feedback":{"fr":"","en":"25,000 is the saw's loss, not its carrying amount after impairment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000352","standard_id":"IAS36","concept_ids":["IAS36.CGU_LOSS.UNDETERMINABLE_RECOVERABLE_AMOUNT","IAS36.CGU_LOSS.ALLOCATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000352","tested_point":"QST.IAS36.000352","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000015","section_id":"rule"},"references":["IAS 36 §106","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 36 describe as arbitrary the allocation of a CGU's loss among its assets other than goodwill, when the recoverable amount of each of them cannot be estimated?","es":""},"explanation":{"fr":"","en":"When the recoverable amount of each asset cannot be estimated, allocating the loss among the assets other than goodwill is necessarily arbitrary, because those assets work together (IAS 36, para. 106). This is why an asset whose recoverable amount cannot be determined follows the treatment set out in IAS 36 (IAS 36, para. 107): it is linked to the impairment of its unit.","es":""},"common_error":{"fr":"","en":"Believing that the allocation is left to the entity's free choice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because these assets work together and have no recoverable amount of their own.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because the entity freely chooses which assets will bear the loss, according to its management priorities.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation is still framed (pro rata, floors): the entity does not choose freely.","es":""}},{"id":"C","text":{"fr":"","en":"Because the loss is first allocated to goodwill, whatever its amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The order of allocation does not explain why the split among the other assets is arbitrary.","es":""}},{"id":"D","text":{"fr":"","en":"Because all the assets of the unit are remeasured at fair value before the allocation.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 does not provide for remeasuring the assets before the allocation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000353","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000353","tested_point":"QST.IAS36.000353","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §110"],"exercise":{"prompt":{"fr":"","en":"At each reporting date, an entity that has recognised an impairment loss on an item of property, plant and equipment must assess whether there is any indication that this loss has decreased or no longer exists.","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity assesses whether there is any indication that an impairment loss recognised in prior periods for an asset other than goodwill no longer exists or has decreased; if such an indication exists, it estimates the asset's recoverable amount (IAS 36, para. 110).","es":""},"common_error":{"fr":"","en":"Never looking for reversal indications again after an impairment.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000354","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000354","tested_point":"QST.IAS36.000354","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §110"],"exercise":{"prompt":{"fr":"","en":"The assessment, at each reporting date, of indications that an impairment loss has decreased or no longer exists applies in the same way to losses recognised on goodwill.","es":""},"explanation":{"fr":"","en":"The assessment of reversal indications covers impairment losses recognised in prior periods for assets other than goodwill (IAS 36, para. 110). Goodwill is therefore outside the scope of this process.","es":""},"common_error":{"fr":"","en":"Applying to goodwill the reversal process designed for other assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000355","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000355","tested_point":"QST.IAS36.000355","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §111"],"exercise":{"prompt":{"fr":"","en":"Which of the following are among the external indications of a reversal of an impairment loss listed in IAS 36?","es":""},"explanation":{"fr":"","en":"IAS 36 lists as external sources: observable indications of a significant increase in the asset's value, favourable changes in the technological, market, economic or legal environment, and a decrease in market interest rates or rates of return affecting the discount rate. Internal reporting is an internal source (IAS 36, para. 111).","es":""},"common_error":{"fr":"","en":"Classifying internal reporting as an external indication.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Internal reporting showing that the economic performance of the asset is better than expected.","es":""},"correct":false,"feedback":{"fr":"","en":"It is a reversal indication, but from an internal source.","es":""}},{"id":"B","text":{"fr":"","en":"Observable indications that the asset's value has increased significantly during the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An increase in market interest rates that affects the discount rate.","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in rates points towards impairment, not reversal.","es":""}},{"id":"D","text":{"fr":"","en":"A favourable change in the legal or market environment in which the entity operates.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A decrease in market interest rates that affects the discount rate used for value in use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000356","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS","IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000356","tested_point":"QST.IAS36.000356","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §110","IAS 36 §111","IAS 36 §116"],"exercise":{"prompt":{"fr":"","en":"Delvaux Textiles impaired a weaving loom in 20X1. Which of the following facts arising in 20X2 are internal reversal indications that require it to estimate the loom's recoverable amount again?","es":""},"explanation":{"fr":"","en":"The internal sources of reversal indications are favourable changes in the use of the asset, including expenditure incurred to improve it, and internal reporting showing better performance than expected (IAS 36, para. 111). When an indication exists, the entity estimates the recoverable amount (IAS 36, para. 110). The fall in rates is an indication, but from an external source; the mere passage of time is not one.","es":""},"common_error":{"fr":"","en":"Classifying the fall in rates as an internal indication.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The loom has moved one year closer to its future cash flows, without any change in assumptions.","es":""},"correct":false,"feedback":{"fr":"","en":"The mere passage of time is not an indication that the asset has improved.","es":""}},{"id":"B","text":{"fr":"","en":"Expenditure has been incurred to improve the loom's performance.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Internal reporting shows that the loom's economic performance is better than expected.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Market interest rates have fallen, which affects the discount rate.","es":""},"correct":false,"feedback":{"fr":"","en":"It is a reversal indication, but from an external source, whereas the question asks for internal indications.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000357","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000357","tested_point":"QST.IAS36.000357","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §112","IAS 36 §111"],"exercise":{"prompt":{"fr":"","en":"What link does IAS 36 draw between indications of a reversal of an impairment loss and indications of impairment?","es":""},"explanation":{"fr":"","en":"The reversal indications listed in IAS 36, both external and internal (IAS 36, para. 111), mainly mirror the impairment indications of paragraph 12 (IAS 36, para. 112): a fall in rates, a favourable change in the environment or better performance echo the opposite situations that signal impairment.","es":""},"common_error":{"fr":"","en":"Thinking that reversal indications are internal only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: reversal indications are exclusively internal, whereas impairment indications are external.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal indications include both external and internal sources.","es":""}},{"id":"B","text":{"fr":"","en":"Reversal indications permanently replace impairment indications as soon as the first loss is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Both analyses coexist: the search for impairment indications continues.","es":""}},{"id":"C","text":{"fr":"","en":"Reversal indications mainly mirror the indications of impairment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are identical and are assessed only during a mandatory annual test.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment takes place at each reporting date, not only in an annual test.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000358","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000358","tested_point":"QST.IAS36.000358","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §109","IAS 36 §110"],"exercise":{"prompt":{"fr":"","en":"Hautbois Médical has impaired both a stand-alone machine and a CGU. The general IAS 36 requirements on reversal (search for indications and conditions for a reversal) apply:","es":""},"explanation":{"fr":"","en":"The general reversal requirements cover an asset or a CGU, the term asset covering both; they are supplemented by rules specific to an individual asset, a CGU and goodwill (IAS 36, para. 109). The search for indications concerns losses other than on goodwill (IAS 36, para. 110).","es":""},"common_error":{"fr":"","en":"Believing that only a stand-alone machine can be subject to a reversal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"only to the machine, as CGUs are never concerned by a reversal;","es":""},"correct":false,"feedback":{"fr":"","en":"CGUs are also covered by the general reversal requirements.","es":""}},{"id":"B","text":{"fr":"","en":"only to the CGU, if goodwill is allocated to it;","es":""},"correct":false,"feedback":{"fr":"","en":"The presence of goodwill is not the condition for applying these requirements.","es":""}},{"id":"C","text":{"fr":"","en":"only to the goodwill of the CGU;","es":""},"correct":false,"feedback":{"fr":"","en":"The search for reversal indications precisely concerns losses other than on goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"to the machine and to the CGU alike, with additional rules specific to each and to goodwill.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000359","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000359","tested_point":"QST.IAS36.000359","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §110","IAS 36 §111"],"exercise":{"prompt":{"fr":"","en":"Navarre Cargo impaired a vessel at the end of 20X1, its value in use having been calculated with a discount rate of 9%. In 20X2, market interest rates fall markedly, which affects the discount rate applicable to the vessel. What must the entity do at the 20X2 reporting date?","es":""},"explanation":{"fr":"","en":"A decrease in market interest rates that affects the discount rate is an external reversal indication (IAS 36, para. 111). When an indication exists, the entity must estimate the asset's recoverable amount (IAS 36, para. 110). Any reversal will depend on the outcome of that estimate, not on the indication itself.","es":""},"common_error":{"fr":"","en":"Recognising a reversal as soon as an indication appears.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Automatically reverse the whole loss recognised at the end of 20X1.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication requires the recoverable amount to be estimated; it does not by itself justify a reversal.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise that a reversal indication exists and estimate the vessel's recoverable amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Do nothing: reversals are only considered for assets subject to a mandatory annual test.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal indications are assessed at each reporting date for every impaired asset other than goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"Wait until the fall in rates has been confirmed over three years before any analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 sets no confirmation period: the assessment is made at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000360","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDICATORS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000360","tested_point":"QST.IAS36.000360","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-indicators"},"references":["IAS 36 §113","IAS 36 §111"],"exercise":{"prompt":{"fr":"","en":"Ibarra Composants impaired a press in 20X1. In 20X2, its internal reporting shows that the press performs better than expected. However, the estimated recoverable amount remains below the carrying amount, so no reversal is recognised. What consequence must the entity consider?","es":""},"explanation":{"fr":"","en":"Internal reporting showing better performance than expected is an internal reversal indication (IAS 36, para. 111). Even if no reversal is recognised, this indication may signal that the remaining useful life, the depreciation method or the residual value need to be reviewed and adjusted under the standard applicable to the asset (IAS 36, para. 113).","es":""},"common_error":{"fr":"","en":"Considering that an indication without a reversal has no effect.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: as no reversal is recognised, the indication has no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"An indication may lead to reviewing the depreciation parameters, even without a reversal.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise a partial reversal equal to half of the 20X1 loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No flat-rate reversal: the recoverable amount remains below the carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"Review the remaining useful life, the depreciation method or the residual value of the press.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Cancel the 20X1 loss through equity, without going through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No reversal is justified here, let alone a direct entry in equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000361","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000361","tested_point":"QST.IAS36.000361","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §114"],"exercise":{"prompt":{"fr":"","en":"An impairment loss recognised on an asset other than goodwill is reversed only if the estimates used to determine its recoverable amount have changed since the last impairment loss was recognised.","es":""},"explanation":{"fr":"","en":"An impairment loss on an asset other than goodwill is reversed if, and only if, the estimates used to determine its recoverable amount have changed since the last loss; the carrying amount is then increased to the recoverable amount, within the cap set by the standard (IAS 36, para. 114).","es":""},"common_error":{"fr":"","en":"Reversing a loss without identifying a change in estimates.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000362","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000362","tested_point":"QST.IAS36.000362","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §116"],"exercise":{"prompt":{"fr":"","en":"Ferrand Optique may reverse an impairment loss on a piece of equipment when its value in use increases solely because its future cash flows are getting closer in time.","es":""},"explanation":{"fr":"","en":"The unwinding of the discount alone, i.e. cash flows getting closer in time, can increase value in use without any increase in the asset's service potential; it does not justify a reversal (IAS 36, para. 116).","es":""},"common_error":{"fr":"","en":"Reversing a loss merely because time has passed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000363","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000363","tested_point":"QST.IAS36.000363","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §115"],"exercise":{"prompt":{"fr":"","en":"When the recoverable amount of an impaired asset is now based on its fair value less costs of disposal rather than on its value in use, this change of basis is a change in estimate that may justify a reversal.","es":""},"explanation":{"fr":"","en":"A reversal reflects an increase in the asset's estimated service potential since the last loss. The possible changes in estimates include a change in the basis of the recoverable amount, i.e. moving from value in use to fair value less costs of disposal or the reverse (IAS 36, para. 115).","es":""},"common_error":{"fr":"","en":"Believing that only a change in cash flows can justify a reversal.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000364","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000364","tested_point":"QST.IAS36.000364","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §114","IAS 36 §115"],"exercise":{"prompt":{"fr":"","en":"Ravel Agrégats impaired a crusher last year. Which of the following situations may justify reversing this impairment loss?","es":""},"explanation":{"fr":"","en":"A reversal occurs only if the estimates used to determine the recoverable amount have changed (IAS 36, para. 114). A revision of the amount or timing of the estimated cash flows is one of the changes in estimates cited (IAS 36, para. 115). The passage of time, the age of the loss or a profit target are not changes in estimates.","es":""},"common_error":{"fr":"","en":"Treating the passage of time as a change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The passage of one year, which brings the crusher's future cash flows closer to the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Cash flows getting closer in time reflect no change in estimate.","es":""}},{"id":"B","text":{"fr":"","en":"Management's wish to improve the profit for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"A profit target is not a change in estimate.","es":""}},{"id":"C","text":{"fr":"","en":"An upward revision of the crusher's estimated future cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The mere observation that the loss was recognised more than three years ago.","es":""},"correct":false,"feedback":{"fr":"","en":"The age of the loss is not a condition for a reversal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000365","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000365","tested_point":"QST.IAS36.000365","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §114","IAS 36 §117"],"exercise":{"prompt":{"fr":"","en":"The conditions for a reversal are met for an asset other than goodwill of Moreau Céréales. To what amount is its carrying amount increased?","es":""},"explanation":{"fr":"","en":"When the estimates have changed, the asset's carrying amount is increased to its recoverable amount, subject to a cap (IAS 36, para. 114): it may not exceed the carrying amount that would have been determined, net of depreciation, had no loss been recognised (IAS 36, para. 117).","es":""},"common_error":{"fr":"","en":"Reversing up to the new recoverable amount without applying the cap.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To its recoverable amount, within the carrying amount without the loss, net of depreciation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To its recoverable amount, whatever that amount is.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is capped: the recoverable amount is not enough.","es":""}},{"id":"C","text":{"fr":"","en":"To its original cost, before any depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Original cost ignores the depreciation that would have been charged.","es":""}},{"id":"D","text":{"fr":"","en":"To its carrying amount just before the loss, without deducting the depreciation since then.","es":""},"correct":false,"feedback":{"fr":"","en":"The cap takes into account the depreciation that would have been charged since the loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000366","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000366","tested_point":"QST.IAS36.000366","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §115"],"exercise":{"prompt":{"fr":"","en":"In economic terms, what does the reversal of an impairment loss reflect under IAS 36?","es":""},"explanation":{"fr":"","en":"A reversal reflects an increase in the estimated service potential of the asset, through use or sale, since the date of the last loss; the entity must identify the change in estimate that causes it (IAS 36, para. 115).","es":""},"common_error":{"fr":"","en":"Confusing the reversal of an impairment loss with the correction of an error.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The mere passage of time since the impairment loss was recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The passage of time does not increase the asset's service potential.","es":""}},{"id":"B","text":{"fr":"","en":"The correction of an error made when the impairment loss was recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"A reversal results from a change in estimate, not from correcting an error.","es":""}},{"id":"C","text":{"fr":"","en":"An increase in the asset's estimated service potential.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A voluntary write-up of the asset decided by management to reflect its confidence.","es":""},"correct":false,"feedback":{"fr":"","en":"A reversal rests on an identified change in estimate, not on a management decision.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000367","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000367","tested_point":"QST.IAS36.000367","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §116","IAS 36 §114"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X1, Lorient Marine impaired a handling gantry crane, written down to its value in use of 400,000, calculated on five years of cash flows at 8%. At the end of 20X2, no assumption has changed: same annual cash flows, same rate. Recalculated, value in use is higher, solely because the cash flows are now closer. What should be concluded?","es":""},"explanation":{"fr":"","en":"A reversal requires a change in the estimates used to determine the recoverable amount (IAS 36, para. 114). Here, cash flows and rate are unchanged: the increase in value in use arises solely from cash flows getting closer in time, which does not increase service potential and justifies no reversal (IAS 36, para. 116).","es":""},"common_error":{"fr":"","en":"Reversing a loss merely because of the unwinding of the discount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No reversal: the increase arises solely from the unwinding of the discount.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A reversal equal to the increase in value in use, within the cap.","es":""},"correct":false,"feedback":{"fr":"","en":"No estimate has changed: there is no reversal, capped or not.","es":""}},{"id":"C","text":{"fr":"","en":"A reversal limited to half of the increase in value in use, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides for no flat-rate partial reversal; here, no reversal at all.","es":""}},{"id":"D","text":{"fr":"","en":"A reversal, since value in use now exceeds the carrying amount of the crane.","es":""},"correct":false,"feedback":{"fr":"","en":"Exceeding the carrying amount is not enough without a change in estimate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000368","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000368","tested_point":"QST.IAS36.000368","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §115","IAS 36 §114"],"exercise":{"prompt":{"fr":"","en":"Vasquez Énergie impaired a turbine at the end of 20X1 based on its value in use, calculated at 11%. At the end of 20X2, the appropriate discount rate is revised to 8% because of changing market conditions; the expected cash flows are unchanged. The recalculated value in use exceeds the carrying amount. What should be concluded?","es":""},"explanation":{"fr":"","en":"A reversal requires a change in the estimates used to determine the recoverable amount (IAS 36, para. 114). For value in use, a change in the discount rate is one of those changes in estimates, just like a change in the amount or timing of cash flows (IAS 36, para. 115). The reversal remains subject to the cap set by the standard.","es":""},"common_error":{"fr":"","en":"Treating a revision of the rate as mere unwinding of the discount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No reversal: only a revision of cash flows can justify a reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the discount rate is also a change in estimate.","es":""}},{"id":"B","text":{"fr":"","en":"A reversal may be recognised, as the discount rate is an estimate that has changed.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No reversal: a lower rate has the same effect as the unwinding of the discount.","es":""},"correct":false,"feedback":{"fr":"","en":"Unwinding is the mere passage of time; here, the rate itself has changed.","es":""}},{"id":"D","text":{"fr":"","en":"A reversal is only possible at the end of the originally expected useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no such rule: reversal is assessed at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000369","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000369","tested_point":"QST.IAS36.000369","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §115","IAS 36 §114"],"exercise":{"prompt":{"fr":"","en":"Orsini Immobilier impaired a warehouse at the end of 20X1; its recoverable amount was then its fair value less costs of disposal. At the end of 20X2, the warehouse's fair value, given and measured under IFRS 13, has increased thanks to the regeneration of the district; the estimated costs of disposal are unchanged and the new recoverable amount exceeds the carrying amount. Which analysis applies?","es":""},"explanation":{"fr":"","en":"A reversal requires a change in the estimates used for the recoverable amount (IAS 36, para. 114). When the recoverable amount is fair value less costs of disposal, a change in its components, here fair value, is such a change (IAS 36, para. 115). The reversal remains capped under the standard.","es":""},"common_error":{"fr":"","en":"Thinking that a reversal can only come from value in use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No reversal: a reversal can only result from an increase in value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the components of net fair value is also a change in estimate.","es":""}},{"id":"B","text":{"fr":"","en":"The increase is recognised in other comprehensive income, as a revaluation, with no reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a reversal of an impairment loss, not a revaluation, within the cap.","es":""}},{"id":"C","text":{"fr":"","en":"No reversal until the warehouse has actually been sold.","es":""},"correct":false,"feedback":{"fr":"","en":"A sale is not a condition: only the change in estimate matters.","es":""}},{"id":"D","text":{"fr":"","en":"A reversal may be recognised: a component of net fair value has changed.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000370","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000370","tested_point":"QST.IAS36.000370","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §116"],"exercise":{"prompt":{"fr":"","en":"An accountant at Dumoulin Agro presents his analysis of a grain dryer impaired in 20X1. Which step contains an error?","es":""},"explanation":{"fr":"","en":"An increase in value in use due solely to cash flows getting closer in time (unwinding of the discount) does not increase the asset's service potential and does not justify a reversal (IAS 36, para. 116). Step 3 is therefore wrong; looking for indications and recalculating value in use are correct procedures.","es":""},"common_error":{"fr":"","en":"Recognising a reversal merely because of the unwinding of the discount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: at the 20X2 reporting date, he looks for any indication that the 20X1 loss has decreased.","es":""},"correct":false,"feedback":{"fr":"","en":"Looking for reversal indications at each reporting date is correct.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: he recalculates the dryer's value in use with the same cash flows and the same rate as in 20X1.","es":""},"correct":false,"feedback":{"fr":"","en":"Recalculating value in use is not an error in itself.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: he reverses the loss because value in use has increased solely as the cash flows have come closer.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No step is wrong: the analysis complies with IAS 36 from start to finish.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 3 relies solely on the unwinding of the discount: it is wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000371","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000371","tested_point":"QST.IAS36.000371","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"reversal-conditions"},"references":["IAS 36 §114","IAS 36 §115"],"exercise":{"prompt":{"fr":"","en":"Garonne Aéro impaired an assembly line in 20X1. Its management controller describes the analysis carried out at the end of 20X2. Which step is wrong?","es":""},"explanation":{"fr":"","en":"An impairment loss on an asset other than goodwill is reversed when the estimates used to determine its recoverable amount have changed (IAS 36, para. 114); a revision of the amount of the estimated cash flows is one of those changes (IAS 36, para. 115). Refusing any reversal as a matter of principle is therefore the error: a reversal must be recognised, within the cap.","es":""},"common_error":{"fr":"","en":"Believing that impairment losses on assets other than goodwill are never reversed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: he notes that new long-term contracts have led to raising the forecast cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Raising cash flows following new contracts is a legitimate change in estimate.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: he infers that a reversal indication exists and estimates a recoverable amount above the carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"When an indication exists, estimating the recoverable amount is the right approach.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: he refuses any reversal, as in his view a loss on an asset other than goodwill can never be reversed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No step is wrong.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 3 contradicts IAS 36: one step is therefore wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000372","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CONDITIONS","IAS36.RECOVERABLE_AMOUNT.DEFINITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000372","tested_point":"QST.IAS36.000372","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000005","section_id":"recoverable-amount-rule"},"references":["IAS 36 §115","IAS 36 §116","IAS 36 §18"],"exercise":{"prompt":{"fr":"","en":"Loire Froid impaired a cold-storage warehouse in 20X1 based on its value in use. At the end of 20X2, an internal auditor reviews the closing file. Which step is wrong?","es":""},"explanation":{"fr":"","en":"A change in the basis of the recoverable amount, moving from value in use to fair value less costs of disposal, is one of the changes in estimates that may justify a reversal (IAS 36, para. 115). Refusing the reversal because cash flows have not been revised is therefore the error. Checking that the increase does not arise solely from the unwinding of the discount remains a correct procedure (IAS 36, para. 116).","es":""},"common_error":{"fr":"","en":"Limiting changes in estimates to the revision of cash flows only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: the recoverable amount is now based on fair value less costs of disposal, which has become higher than value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the higher basis for the recoverable amount is not an error.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: the change of basis is deemed irrelevant and any reversal is refused, as cash flows have not been revised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Step 3: it is checked that the increase in recoverable amount does not arise solely from the unwinding of the discount.","es":""},"correct":false,"feedback":{"fr":"","en":"This check is relevant: the unwinding of the discount alone does not justify a reversal.","es":""}},{"id":"D","text":{"fr":"","en":"No step is wrong.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 2 ignores a change in estimate recognised by IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000373","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000373","tested_point":"QST.IAS36.000373","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"Kerbrat Mécanique measures its machines under the cost model. The conditions for reversing an impairment loss are met for one of them. Where is the reversal recognised?","es":""},"explanation":{"fr":"","en":"A reversal of an impairment loss on an asset other than goodwill is recognised immediately in profit or loss, unless the asset is carried under the revaluation model (IAS 36, para. 119). A machine measured at cost therefore goes through profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in equity the reversal on an asset measured at cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In equity, in a specific reversal reserve.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset at cost, the reversal does not go through equity.","es":""}},{"id":"B","text":{"fr":"","en":"Immediately in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In other comprehensive income, then recycled to profit or loss over the remaining life.","es":""},"correct":false,"feedback":{"fr":"","en":"Other comprehensive income only concerns revalued assets.","es":""}},{"id":"D","text":{"fr":"","en":"As a reduction of future depreciation, with no entry at the date of the reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is recognised immediately; future depreciation is adjusted afterwards.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000374","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000374","tested_point":"QST.IAS36.000365","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117"],"exercise":{"prompt":{"fr":"","en":"What limit does IAS 36 impose on the carrying amount of an asset other than goodwill after the reversal of an impairment loss?","es":""},"explanation":{"fr":"","en":"After a reversal, the carrying amount of an asset other than goodwill may not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in prior years (IAS 36, para. 117).","es":""},"common_error":{"fr":"","en":"Reversing up to the new recoverable amount without a cap.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its new recoverable amount, with no other limit.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is capped, even if the recoverable amount is higher.","es":""}},{"id":"B","text":{"fr":"","en":"Its original acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Original cost ignores the depreciation that would have been charged.","es":""}},{"id":"C","text":{"fr":"","en":"Its carrying amount without the prior loss, net of depreciation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The carrying amount it had just before the loss, without deducting the depreciation of the following years.","es":""},"correct":false,"feedback":{"fr":"","en":"The cap includes the depreciation that would have been charged since the loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000375","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000375","tested_point":"QST.IAS36.000375","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §118","IAS 36 §117"],"exercise":{"prompt":{"fr":"","en":"The recoverable amount of an impaired asset of Solenne Vitrages rises above the carrying amount it would have had without the impairment, net of depreciation. How does IAS 36 characterise the part of the increase above this cap?","es":""},"explanation":{"fr":"","en":"A reversal cannot increase the carrying amount above what it would have been without the loss, net of depreciation (IAS 36, para. 117). Any increase above that cap is not a reversal: it is a revaluation, governed by the standard applicable to the asset (IAS 36, para. 118).","es":""},"common_error":{"fr":"","en":"Recognising the increase above the cap as a reversal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an additional reversal of the impairment loss, in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal stops at the cap; above it, it is no longer a reversal.","es":""}},{"id":"B","text":{"fr":"","en":"As a reversal of the impairment loss recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Above the cap, it is no longer a reversal, whatever the presentation.","es":""}},{"id":"C","text":{"fr":"","en":"As a revaluation, governed by the standard applicable to the asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a deferred gain to be spread over the asset's remaining useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 provides for no spreading of this excess.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000376","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000804","tested_point":"VG.IAS36.000804","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117"],"exercise":{"prompt":{"fr":"","en":"Pontis Emballages impaired a packaging line two years ago. At the reporting date, as the estimates have changed, the line's recoverable amount is estimated at {recoverable_amount}. Its carrying amount is {current_ca}; without the impairment loss, it would have been {ca_without_impairment}, net of depreciation. Calculate the amount of the reversal.","es":""},"explanation":{"fr":"","en":"The carrying amount after reversal is limited to the lower of the recoverable amount (330,000) and the carrying amount without the prior loss (300,000), i.e. 300,000 (IAS 36, para. 117). Reversal: 300,000 − 180,000 = 120,000, not 330,000 − 180,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Reversing 150,000 up to the recoverable amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_ca","value":"180000","unit":"EUR"},{"id":"ca_without_impairment","value":"300000","unit":"EUR"},{"id":"recoverable_amount","value":"330000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current carrying amount","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount without the prior loss, net of depreciation","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"330000","unit":"EUR"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Amount of the reversal","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVERSAL","meaning":{"fr":"","en":"Amount of the reversal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount without the prior loss, net of depreciation","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Current carrying amount","es":""},"value":180000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"The carrying amount after reversal is limited to the lower of the recoverable amount (330,000) and the carrying amount without the prior loss (300,000), i.e. 300,000 (IAS 36, para. 117).","es":""},"references":["REF.IAS36.117"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000377","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET","IAS36.IMPAIRMENT_LOSS.SUBSEQUENT_EFFECTS"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000804","tested_point":"VG.IAS36.000804","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000009","section_id":"deferred-tax"},"references":["IAS 36 §117","IAS 36 §63"],"exercise":{"prompt":{"fr":"","en":"Trans-Iroise acquires a refrigerated truck on 1 January 20X1 for {cost}, depreciated on a straight-line basis over {useful_life} years with no residual value. At the end of 20X2, after the depreciation for the year, it recognises an impairment loss of {impairment_loss}; the remaining useful life is unchanged. At the end of 20X4, after the depreciation for the year and following a change in estimates, the truck's recoverable amount is {recoverable_amount}. Calculate the reversal at the end of 20X4 and the truck's carrying amount after the reversal.","es":""},"explanation":{"fr":"","en":"Initial depreciation: 240,000 / 8 = 30,000 a year. End of 20X2: 240,000 − 60,000 = 180,000 before the loss, then 180,000 − 60,000 = 120,000 after the loss. Depreciation is then recalculated over the remaining life: 120,000 / 6 = 20,000 a year (IAS 36, para. 63). End of 20X4: 120,000 − 2 × 20,000 = 80,000. Cap without the loss: 240,000 − 4 × 30,000 = 120,000 (IAS 36, para. 117). As the recoverable amount (140,000) exceeds the cap, the carrying amount is increased to 120,000: a reversal of 120,000 − 80,000 = 40,000.","es":""},"common_error":{"fr":"","en":"Reversing 60,000 by taking the truck up to its recoverable amount of 140,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"240000","unit":"EUR"},{"id":"useful_life","value":"8","unit":"YEARS"},{"id":"impairment_loss","value":"60000","unit":"EUR"},{"id":"recoverable_amount","value":"140000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Acquisition cost","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Useful life (years)","es":""},"value":"8","unit":"YEARS"},{"label":{"fr":"","en":"Impairment loss at the end of 20X2","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount at the end of 20X4","es":""},"value":"140000","unit":"EUR"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Reversal at the end of 20X4","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"CA_AFTER_REVERSAL","label":{"fr":"","en":"Carrying amount after the reversal","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CA_AFTER_REVERSAL","meaning":{"fr":"","en":"Carrying amount after the reversal","es":""},"expression":"(a - b) - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquisition cost","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Impairment loss at the end of 20X2","es":""},"value":60000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"references":["REF.IAS36.117","REF.IAS36.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000378","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000804","tested_point":"VG.IAS36.000804","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117"],"exercise":{"prompt":{"fr":"","en":"The laboratory Lumen Diagnostics had impaired an amortised patent on a screening test after a competing process arrived. As this competitor has been withdrawn from the market, royalty forecasts are revised upwards and the patent's recoverable amount reaches {recoverable_amount}. The patent is carried at {current_ca}; without the impairment, its carrying amount would be {ca_without_impairment}, net of amortisation. What amount of reversal should be recognised?","es":""},"explanation":{"fr":"","en":"The carrying amount after reversal is the lower of the recoverable amount (130,000) and the cap without the loss (150,000), i.e. 130,000 (IAS 36, para. 117). Here the cap is not reached: the reversal is 130,000 − 90,000 = 40,000, not 150,000 − 90,000 = 60,000.","es":""},"common_error":{"fr":"","en":"Reversing up to the cap when the recoverable amount is lower.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_ca","value":"90000","unit":"EUR"},{"id":"ca_without_impairment","value":"150000","unit":"EUR"},{"id":"recoverable_amount","value":"130000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the patent","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount without the impairment, net of amortisation","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"New recoverable amount","es":""},"value":"130000","unit":"EUR"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Amount of the reversal","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVERSAL","meaning":{"fr":"","en":"Amount of the reversal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New recoverable amount","es":""},"value":130000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the patent","es":""},"value":90000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"The carrying amount after reversal is the lower of the recoverable amount (130,000) and the cap without the loss (150,000), i.e. 130,000 (IAS 36, para. 117).","es":""},"references":["REF.IAS36.117"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000379","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000805","tested_point":"VG.IAS36.000805","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Nordhaven Gaz recognises a reversal of an impairment loss of {reversal} on a compressor whose carrying amount was {ca_before_reversal}; this reversal amount already complies with the IAS 36 cap. The compressor's estimated residual value is {residual_value} and its remaining useful life is {remaining_life} years. Calculate the carrying amount after the reversal and the annual straight-line depreciation for the following years.","es":""},"explanation":{"fr":"","en":"Carrying amount after reversal: 150,000 + 110,000 = 260,000. After a reversal, depreciation is adjusted to allocate the revised carrying amount, less residual value, over the remaining useful life (IAS 36, para. 121): (260,000 − 20,000) / 6 = 40,000 a year.","es":""},"common_error":{"fr":"","en":"Keeping the old depreciation charge computed before the reversal.","es":""},"format":"CALCULATION","placeholders":[{"id":"ca_before_reversal","value":"150000","unit":"EUR"},{"id":"reversal","value":"110000","unit":"EUR"},{"id":"residual_value","value":"20000","unit":"EUR"},{"id":"remaining_life","value":"6","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Carrying amount before reversal","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Reversal recognised","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life (years)","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"CA_AFTER_REVERSAL","label":{"fr":"","en":"Carrying amount after reversal","es":""},"answer":260000,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Future annual depreciation","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CA_AFTER_REVERSAL","meaning":{"fr":"","en":"Carrying amount after reversal","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before reversal","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Reversal recognised","es":""},"value":110000,"unit":"EUR"}],"result":260000,"unit":"EUR"},{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Future annual depreciation","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount after reversal","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":20000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining useful life (years)","es":""},"value":6,"unit":"YEARS"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"After a reversal, depreciation is adjusted to allocate the revised carrying amount, less residual value, over the remaining useful life (IAS 36, para. 121): (260,000 − 20,000) / 6 = 40,000 a year.","es":""}}],"references":["REF.IAS36.121"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000380","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000805","tested_point":"VG.IAS36.000805","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117","IAS 36 §121"],"exercise":{"prompt":{"fr":"","en":"Forages Delmas had impaired a drilling rig during a mining downturn. The recovery in activity leads to an upward revision of expected cash flows: the rig's recoverable amount is now {recoverable_amount}. Its carrying amount is {current_ca} and would have been {ca_without_impairment} without the impairment, net of depreciation. The residual value is estimated at {residual_value} and the remaining useful life at {remaining_life} years. Calculate the reversal and the annual straight-line depreciation for the following years.","es":""},"explanation":{"fr":"","en":"The carrying amount after reversal may not exceed the cap without impairment of 132,000, which is below the recoverable amount of 150,000 (IAS 36, para. 117): a reversal of 132,000 − 84,000 = 48,000. Depreciation is then adjusted over the remaining life (IAS 36, para. 121): (132,000 − 12,000) / 5 = 24,000 a year.","es":""},"common_error":{"fr":"","en":"Reversing 66,000 up to the recoverable amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_ca","value":"84000","unit":"EUR"},{"id":"ca_without_impairment","value":"132000","unit":"EUR"},{"id":"recoverable_amount","value":"150000","unit":"EUR"},{"id":"residual_value","value":"12000","unit":"EUR"},{"id":"remaining_life","value":"5","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Current carrying amount","es":""},"value":"84000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount without the impairment, net of depreciation","es":""},"value":"132000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Residual value","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life (years)","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"REVERSAL","label":{"fr":"","en":"Amount of the reversal","es":""},"answer":48000,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Future annual depreciation","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVERSAL","meaning":{"fr":"","en":"Amount of the reversal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount without the impairment, net of depreciation","es":""},"value":132000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Current carrying amount","es":""},"value":84000,"unit":"EUR"}],"result":48000,"unit":"EUR","rationale":{"fr":"","en":"The carrying amount after reversal may not exceed the cap without impairment of 132,000, which is below the recoverable amount of 150,000 (IAS 36, para. 117): a reversal of 132,000 − 84,000 = 48,000.","es":""}},{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Future annual depreciation","es":""},"expression":"(a - b) / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount without the impairment, net of depreciation","es":""},"value":132000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Residual value","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Remaining useful life (years)","es":""},"value":5,"unit":"YEARS"}],"result":24000,"unit":"EUR","rationale":{"fr":"","en":"Depreciation is then adjusted over the remaining life (IAS 36, para. 121): (132,000 − 12,000) / 5 = 24,000 a year.","es":""}}],"references":["REF.IAS36.117","REF.IAS36.121"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000385","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000385","tested_point":"QST.IAS36.000385","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §120","IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"Vigneaux Patrimoine measures an office building under the revaluation model. A prior impairment loss of 40,000 had been charged entirely against that building's revaluation surplus; nothing went to profit or loss. As the estimates have changed, a reversal of 28,000 must be recognised (given amount). Which treatment applies?","es":""},"explanation":{"fr":"","en":"A reversal on a revalued asset is treated as a revaluation increase (IAS 36, para. 119): it is recognised in other comprehensive income and increases the revaluation surplus; only the part corresponding to a loss previously recognised in profit or loss is reversed in profit or loss (IAS 36, para. 120). Here no loss had affected profit or loss: the 28,000 goes entirely to other comprehensive income.","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss a reversal whose original loss had been charged against the revaluation surplus.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"28,000 in profit or loss, as for any asset.","es":""},"correct":false,"feedback":{"fr":"","en":"For a revalued asset, only the part of a prior loss recognised in profit or loss is reversed in profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"28,000 in other comprehensive income, increasing the revaluation surplus.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No entry, as a revalued asset cannot be subject to a reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"A revalued asset can be subject to a reversal; only its accounting differs.","es":""}},{"id":"D","text":{"fr":"","en":"40,000 in other comprehensive income, to restore the original surplus.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is 28,000: the original surplus is not restored mechanically.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000386","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000386","tested_point":"QST.IAS36.000386","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §117","IAS 36 §118","IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"Arbois Céramique measures its kilns at cost. A kiln impaired two years ago has a carrying amount of 140,000; without the loss, its carrying amount would be 200,000, net of depreciation. As the estimates have changed, its recoverable amount is now 230,000. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The carrying amount after reversal may not exceed 200,000, the amount without the prior loss net of depreciation (IAS 36, para. 117): a reversal of 200,000 − 140,000 = 60,000, recognised immediately in profit or loss for an asset at cost (IAS 36, para. 119). The 30,000 above the cap is not a reversal: it would be a revaluation, governed by the standard applicable to the asset (IAS 36, para. 118).","es":""},"common_error":{"fr":"","en":"Reversing up to the recoverable amount of 230,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reversal of 90,000 in profit or loss, to bring the kiln up to its recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is capped at a carrying amount of 200,000: 90,000 exceeds the cap.","es":""}},{"id":"B","text":{"fr":"","en":"A reversal of 60,000 in profit or loss; the excess of 30,000 is not a reversal.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A reversal of 60,000 in profit or loss and a reversal of 30,000 in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Above the cap, it is no longer a reversal, whether in profit or loss or in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"A reversal of 60,000 recognised directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"For an asset at cost, the reversal is recognised in profit or loss, not in equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000387","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000901","tested_point":"VG.IAS36.000901","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §122","IAS 36 §123"],"exercise":{"prompt":{"fr":"","en":"Two years ago, Vellora impaired its packaging cash-generating unit. At the end of 20X3, the unit's carrying amounts are: goodwill {goodwill_ca}, building {building_ca}, equipment {equipment_ca}. Had no impairment loss been recognised previously, the carrying amounts, net of depreciation, would have been {building_cap} for the building and {equipment_cap} for the equipment; the recoverable amount of each asset on its own cannot be determined. The reversal to be allocated for the unit is {unit_reversal}. What reversal is allocated to each item?","es":""},"explanation":{"fr":"","en":"A reversal for a unit is allocated to the assets other than goodwill, pro rata to their carrying amounts (IAS 36, para. 122). Allocation base: 300,000 + 200,000 = 500,000. Building: 50,000 × 300,000 / 500,000 = 30,000; equipment: 50,000 × 200,000 / 500,000 = 20,000. The ceilings are not reached: 330,000 ≤ 340,000 and 220,000 ≤ 230,000 (IAS 36, para. 123). Goodwill receives no reversal: 0.","es":""},"common_error":{"fr":"","en":"Including goodwill in the allocation base (base of 540,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"40000","unit":"EUR"},{"id":"building_ca","value":"300000","unit":"EUR"},{"id":"equipment_ca","value":"200000","unit":"EUR"},{"id":"building_cap","value":"340000","unit":"EUR"},{"id":"equipment_cap","value":"230000","unit":"EUR"},{"id":"unit_reversal","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the building","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the equipment","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the building without the prior loss","es":""},"value":"340000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the equipment without the prior loss","es":""},"value":"230000","unit":"EUR"},{"label":{"fr":"","en":"Reversal to be allocated for the unit","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"GOODWILL_REVERSAL","label":{"fr":"","en":"Reversal allocated to goodwill","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"BUILDING_REVERSAL","label":{"fr":"","en":"Reversal allocated to the building","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"EQUIPMENT_REVERSAL","label":{"fr":"","en":"Reversal allocated to the equipment","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BUILDING_REVERSAL","meaning":{"fr":"","en":"Reversal allocated to the building","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Reversal to be allocated for the unit","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the building","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the equipment","es":""},"value":200000,"unit":"EUR"}],"result":30000,"unit":"EUR"},{"step":"EQUIPMENT_REVERSAL","meaning":{"fr":"","en":"Reversal allocated to the equipment","es":""},"expression":"a * b / (c + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Reversal to be allocated for the unit","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the equipment","es":""},"value":200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the building","es":""},"value":300000,"unit":"EUR"}],"result":20000,"unit":"EUR"}],"references":["REF.IAS36.122","REF.IAS36.123"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000388","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000901","tested_point":"VG.IAS36.000901","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §122","IAS 36 §123"],"exercise":{"prompt":{"fr":"","en":"Daloz Printing operates a cash-generating unit carrying residual goodwill of {goodwill_ca}, a digital press ({press_ca}), a process licence ({licence_ca}) and a fleet of vans ({fleet_ca}). After a strong recovery in orders, the unit shows an impairment reversal of {unit_reversal} to be allocated. Without the prior loss, the carrying amounts net of depreciation and amortisation would be: press {press_cap}, licence {licence_cap}, fleet {fleet_cap}. No individual recoverable amount can be determined. Calculate the reversal allocated to the press, the licence and the fleet.","es":""},"explanation":{"fr":"","en":"Goodwill is excluded; the reversal is allocated pro rata to the carrying amounts of the other assets (IAS 36, para. 122). Base: 180,000 + 120,000 + 100,000 = 400,000. Press: 40,000 × 180 / 400 = 18,000; licence: 40,000 × 120 / 400 = 12,000; fleet: 40,000 × 100 / 400 = 10,000. Ceiling check (IAS 36, para. 123): 198,000 ≤ 210,000, 132,000 ≤ 140,000 and 110,000 ≤ 115,000, so there is no excess to reallocate.","es":""},"common_error":{"fr":"","en":"Allocating the reversal on a base that includes goodwill (425,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_ca","value":"25000","unit":"EUR"},{"id":"press_ca","value":"180000","unit":"EUR"},{"id":"press_cap","value":"210000","unit":"EUR"},{"id":"licence_ca","value":"120000","unit":"EUR"},{"id":"licence_cap","value":"140000","unit":"EUR"},{"id":"fleet_ca","value":"100000","unit":"EUR"},{"id":"fleet_cap","value":"115000","unit":"EUR"},{"id":"unit_reversal","value":"40000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Residual goodwill of the unit","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the press","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the press without the prior loss","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the licence","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the licence without the prior loss","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the fleet","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the fleet without the prior loss","es":""},"value":"115000","unit":"EUR"},{"label":{"fr":"","en":"Reversal to be allocated","es":""},"value":"40000","unit":"EUR"}],"steps":[{"id":"PRESS_REVERSAL","label":{"fr":"","en":"Reversal allocated to the press","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"LICENCE_REVERSAL","label":{"fr":"","en":"Reversal allocated to the licence","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"FLEET_REVERSAL","label":{"fr":"","en":"Reversal allocated to the fleet","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000389","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000902","tested_point":"VG.IAS36.000902","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §123","IAS 36 §122"],"exercise":{"prompt":{"fr":"","en":"At Marbek Foundries, the Moulding cash-generating unit comprises a melting plant (carrying amount {plant_ca}) and a set of tooling (carrying amount {tools_ca}); the unit's goodwill was fully impaired in the past. The impairment reversal to be allocated amounts to {unit_reversal}. Without the prior loss, the carrying amounts net of depreciation would be {plant_cap} for the plant and {tools_cap} for the tooling. Individual recoverable amounts cannot be determined. What reversal is ultimately allocated to each asset?","es":""},"explanation":{"fr":"","en":"First allocation pro rata to carrying amounts (IAS 36, para. 122): plant 60,000 × 400 / 600 = 40,000, tooling 60,000 × 200 / 600 = 20,000. The plant cannot exceed its amount without the prior loss (IAS 36, para. 123): only 420,000 − 400,000 = 20,000. The excess of 20,000 is allocated to the other non-goodwill asset: tooling 20,000 + 20,000 = 40,000, giving 240,000, below the ceiling of 260,000.","es":""},"common_error":{"fr":"","en":"Keeping 40,000 for the plant without applying the ceiling.","es":""},"format":"CALCULATION","placeholders":[{"id":"plant_ca","value":"400000","unit":"EUR"},{"id":"plant_cap","value":"420000","unit":"EUR"},{"id":"tools_ca","value":"200000","unit":"EUR"},{"id":"tools_cap","value":"260000","unit":"EUR"},{"id":"unit_reversal","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the melting plant","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the plant without the prior loss","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the tooling","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the tooling without the prior loss","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Reversal to be allocated","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"PLANT_REVERSAL","label":{"fr":"","en":"Reversal allocated to the plant","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"TOOLS_REVERSAL","label":{"fr":"","en":"Reversal allocated to the tooling","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PLANT_REVERSAL","meaning":{"fr":"","en":"Reversal allocated to the plant","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the plant without the prior loss","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the melting plant","es":""},"value":400000,"unit":"EUR"}],"result":20000,"unit":"EUR","rationale":{"fr":"","en":"The plant cannot exceed its amount without the prior loss (IAS 36, para. 123): only 420,000 − 400,000 = 20,000.","es":""}}],"references":["REF.IAS36.123","REF.IAS36.122"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000390","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"CALCULATION","context":"V1_VG.IAS36.000902","tested_point":"VG.IAS36.000902","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":330,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §123","IAS 36 §122"],"exercise":{"prompt":{"fr":"","en":"Three years ago, the logistics company Arvanto recognised a loss on its regional hub, treated as a cash-generating unit. At the reporting date, the reversal to be allocated for this unit amounts to {unit_reversal}. The warehouse has a carrying amount of {warehouse_ca}; a valuer has determined its own recoverable amount at {warehouse_ra}, whereas its carrying amount without the prior loss, net of depreciation, would be {warehouse_cap}. The automated sorter has a carrying amount of {sorter_ca} and an amount without the prior loss of {sorter_cap}; its own recoverable amount cannot be determined. Determine the reversal allocated to the warehouse and to the sorter.","es":""},"explanation":{"fr":"","en":"Pro rata to carrying amounts (IAS 36, para. 122): warehouse 80,000 × 500 / 800 = 50,000, sorter 80,000 × 300 / 800 = 30,000. The warehouse is capped at the lower of its recoverable amount (520,000) and its amount without the prior loss (560,000), i.e. 520,000 (IAS 36, para. 123): its reversal is reduced to 20,000. The excess of 30,000 goes to the sorter: 30,000 + 30,000 = 60,000, giving 360,000, below its ceiling of 380,000.","es":""},"common_error":{"fr":"","en":"Capping the warehouse at 560,000 and ignoring its recoverable amount (reversal of 50,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"warehouse_ca","value":"500000","unit":"EUR"},{"id":"warehouse_ra","value":"520000","unit":"EUR"},{"id":"warehouse_cap","value":"560000","unit":"EUR"},{"id":"sorter_ca","value":"300000","unit":"EUR"},{"id":"sorter_cap","value":"380000","unit":"EUR"},{"id":"unit_reversal","value":"80000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the warehouse","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Recoverable amount of the warehouse","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the warehouse without the prior loss","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the sorter","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the sorter without the prior loss","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Reversal to be allocated for the unit","es":""},"value":"80000","unit":"EUR"}],"steps":[{"id":"WAREHOUSE_REVERSAL","label":{"fr":"","en":"Reversal allocated to the warehouse","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"SORTER_REVERSAL","label":{"fr":"","en":"Reversal allocated to the sorter","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000391","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU","IAS36.REVERSAL.INDIVIDUAL_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000391","tested_point":"QST.IAS36.000391","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000016","section_id":"individual-asset-cap"},"references":["IAS 36 §122","IAS 36 §119"],"exercise":{"prompt":{"fr":"","en":"The recoverable amount of a cash-generating unit that carries goodwill, and whose impairment loss had been allocated to goodwill and then to the other assets, increases on a lasting basis. The unit's assets are not revalued. How is the reversal treated?","es":""},"explanation":{"fr":"","en":"A reversal of a unit's impairment loss is allocated to the unit's assets other than goodwill, pro rata to their carrying amounts, and each increase is treated as a reversal for an individual asset (IAS 36, para. 122). For an asset that is not revalued, such a reversal is recognised immediately in profit or loss (IAS 36, para. 119).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is allocated first to goodwill and then to the other assets, in the reverse order of the loss allocation.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill never takes part in allocating a reversal: the loss allocation order does not apply in reverse.","es":""}},{"id":"B","text":{"fr":"","en":"It is allocated pro rata to all the assets of the unit, including goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is excluded from the allocation base of the reversal.","es":""}},{"id":"C","text":{"fr":"","en":"It is allocated to the assets other than goodwill, pro rata to their carrying amounts, and recognised in profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is allocated in full to the largest asset of the unit, which bore the largest share of the loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation is pro rata to carrying amounts, not a lump-sum allocation to a single asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000392","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.CGU"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000392","tested_point":"QST.IAS36.000392","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §122","IAS 36 §123"],"exercise":{"prompt":{"fr":"","en":"The hotel group Solvane is reversing an impairment loss on its Resort cash-generating unit, with an amount of 40,000 to be allocated. The unit comprises goodwill of 15,000 (after the loss), the hotel building (carrying amount 300,000, amount without the prior loss 310,000) and the furniture (carrying amount 100,000, amount without the prior loss 150,000). Individual recoverable amounts cannot be determined. The controller proposes: building + 30,000, furniture + 10,000. Which allocation is correct?","es":""},"explanation":{"fr":"","en":"Pro rata to the non-goodwill carrying amounts (IAS 36, para. 122): building 40,000 × 300 / 400 = 30,000, furniture 10,000. The building is capped at its amount without the prior loss, 310,000, i.e. a reversal of 10,000; the excess of 20,000 is allocated to the other non-goodwill assets (IAS 36, para. 123): furniture 10,000 + 20,000 = 30,000, giving 130,000, below its ceiling of 150,000. Goodwill receives nothing.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Building + 30,000 and furniture + 10,000, as proposed.","es":""},"correct":false,"feedback":{"fr":"","en":"The proposal ignores the building's ceiling: 330,000 would exceed its amount without the prior loss of 310,000.","es":""}},{"id":"B","text":{"fr":"","en":"Building + 10,000 and furniture + 30,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Building + 10,000 and furniture + 10,000; the balance of 20,000 is not recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess arising from the ceiling is not dropped: it is allocated to the other non-goodwill assets.","es":""}},{"id":"D","text":{"fr":"","en":"Goodwill + 15,000, then building + 18,750 and furniture + 6,250.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is excluded from the allocation of a reversal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000393","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000393","tested_point":"QST.IAS36.000393","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"True or false? An impairment loss recognised for goodwill can never be reversed.","es":""},"explanation":{"fr":"","en":"True. IAS 36 prohibits any reversal of an impairment loss for goodwill, whatever the later change in the recoverable amount of the unit to which it is allocated (IAS 36, para. 124).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000394","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000394","tested_point":"QST.IAS36.000394","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"True or false? When the recoverable amount of a cash-generating unit returns to its pre-impairment level, the loss previously allocated to its goodwill is reversed.","es":""},"explanation":{"fr":"","en":"False. An impairment loss for goodwill can never be reversed, even if the unit's recoverable amount returns to or exceeds its earlier level (IAS 36, para. 124). Goodwill stays at its impaired amount.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000395","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000395","tested_point":"QST.IAS36.000395","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"True or false? If the goodwill impairment loss was caused by a specific external event, such as a competitor entering the market, and that event disappears, the entity may reverse the goodwill loss.","es":""},"explanation":{"fr":"","en":"False. The prohibition does not depend on the cause of the loss or on that cause disappearing: an impairment loss for goodwill is never reversed (IAS 36, para. 124). Only the unit's other assets may, where relevant, be subject to a reversal.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000396","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000396","tested_point":"QST.IAS36.000396","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"True or false? The prohibition on reversing a goodwill impairment loss is explained in particular by the fact that a later increase in its recoverable amount would probably reflect internally generated goodwill.","es":""},"explanation":{"fr":"","en":"True. An impairment loss for goodwill is never reversed (IAS 36, para. 124): a later increase in the recoverable amount of goodwill would most likely reflect goodwill generated internally, which IAS 38 prohibits from being recognised (IAS 36, para. 125).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000397","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL","IAS36.REVERSAL.CGU"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000397","tested_point":"QST.IAS36.000397","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §124","IAS 36 §122"],"exercise":{"prompt":{"fr":"","en":"True or false? When a cash-generating unit carries impaired goodwill, the prohibition on reversal extends to all the unit's assets, none of which can then be subject to any reversal.","es":""},"explanation":{"fr":"","en":"False. The prohibition applies to goodwill only (IAS 36, para. 124). A reversal of the unit's loss remains possible: it is allocated to the unit's assets other than goodwill, pro rata to their carrying amounts (IAS 36, para. 122).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000398","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000398","tested_point":"QST.IAS36.000398","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"Which statement about reversing an impairment loss for goodwill is correct?","es":""},"explanation":{"fr":"","en":"An impairment loss for goodwill can never be reversed (IAS 36, para. 124). No limit, no particular way of recognising it and no condition allows that loss to be undone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reversed as soon as the unit's recoverable amount again exceeds its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A recovery in the unit's recoverable amount does not allow a goodwill loss to be reversed.","es":""}},{"id":"B","text":{"fr":"","en":"It is reversed, but only up to the amount of the loss originally recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no ceiling to compute for goodwill: the reversal itself is prohibited.","es":""}},{"id":"C","text":{"fr":"","en":"It is reversed in other comprehensive income rather than in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Where it would be recognised is irrelevant: the reversal itself is prohibited.","es":""}},{"id":"D","text":{"fr":"","en":"It is never reversed.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000399","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000399","tested_point":"QST.IAS36.000399","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 36 prohibit reversing an impairment loss recognised for goodwill?","es":""},"explanation":{"fr":"","en":"A goodwill impairment loss is never reversed (IAS 36, para. 124). The rationale lies in the nature of the increase: a later increase in the recoverable amount of goodwill would most likely reflect internally generated goodwill, which IAS 38 prohibits from being recognised (IAS 36, para. 125). It is not an option left to management.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because a reversal of goodwill would in any case be cancelled by a new loss at the next test.","es":""},"correct":false,"feedback":{"fr":"","en":"That is not the stated reason: the prohibition rests on the risk of recognising internally generated goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"Because a later increase in its recoverable amount would probably reflect internally generated goodwill, whose recognition is prohibited.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the recoverable amount of a unit carrying goodwill can no longer be determined after a first loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The unit's recoverable amount continues to be determined in later tests; the prohibition has another reason.","es":""}},{"id":"D","text":{"fr":"","en":"Purely out of prudence, although management may elect to reverse if it documents its judgement.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not a choice: the prohibition applies to all entities.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000400","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL","IAS36.REVERSAL.CGU"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000400","tested_point":"QST.IAS36.000400","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §124","IAS 36 §122"],"exercise":{"prompt":{"fr":"","en":"In 20X1, Ternac impaired the goodwill of its Nutrition cash-generating unit by 100,000. In 20X2, the unit's recoverable amount increases by 60,000 thanks to the success of a new product range. What is the effect of this increase on goodwill?","es":""},"explanation":{"fr":"","en":"A goodwill impairment loss is never reversed (IAS 36, para. 124): Ternac's goodwill stays at its post-loss amount. If a reversal is recognised for the unit, it is allocated to the assets other than goodwill, pro rata to their carrying amounts (IAS 36, para. 122).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill is increased by 60,000 in profit or loss, since the loss of 100,000 recognised in 20X1 is not fully offset by the increase.","es":""},"correct":false,"feedback":{"fr":"","en":"The increase in the unit's value cannot be allocated to goodwill, either in full or in part.","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill is increased by 60,000 in other comprehensive income, with no effect on profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Where it is recognised makes no difference: any reversal of goodwill is prohibited.","es":""}},{"id":"C","text":{"fr":"","en":"Goodwill stays at its impaired amount; any reversal can only concern the unit's other assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Goodwill is increased by 40,000, the difference between the loss of 100,000 and the increase of 60,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This computation makes no sense: no reversal, even partial, is allocated to goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000401","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000401","tested_point":"QST.IAS36.000401","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"The accountant at Brevalis handles the Optics cash-generating unit, whose goodwill had been impaired by 50,000 in 20X1, as follows: (1) in 20X3, he notes indications of an increase in value; (2) he computes the unit's new recoverable amount; (3) he increases goodwill by 50,000 to cancel the 20X1 loss; (4) he documents the assumptions used in the closing file. Which step is wrong?","es":""},"explanation":{"fr":"","en":"Step 3 is wrong: an impairment loss for goodwill can never be reversed (IAS 36, para. 124). Goodwill must stay at its amount after the 20X1 loss, even though the unit's recoverable amount has increased. The other steps are part of a normal closing process.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: looking for indications of a reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"Looking for indications of an increase in value is part of the closing process; it is not the error.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: recomputing the unit's recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Recomputing the unit's recoverable amount is a legitimate step; the error lies elsewhere.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: reversing the goodwill loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: documenting the assumptions.","es":""},"correct":false,"feedback":{"fr":"","en":"Documenting the assumptions is good practice; it is not the error.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000402","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000402","tested_point":"QST.IAS36.000402","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36 §124","IAS 36"],"exercise":{"prompt":{"fr":"","en":"In its 20X2 financial statements, Kalyste increased the goodwill of its subsidiary Nordwind, impaired in 20X0, by 30,000 and recognised that amount in other comprehensive income, explaining that the subsidiary has developed a strong reputation internally. Where is the error?","es":""},"explanation":{"fr":"","en":"An impairment loss for goodwill is never reversed (IAS 36, para. 124), neither in profit or loss nor in other comprehensive income. Kalyste's argument confirms the problem: an increase linked to an internally built reputation is internally generated goodwill, which IAS 38 prohibits from being recognised (IAS 36, para. 125).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the principle itself: a goodwill loss is never reversed, whatever the place of recognition.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only in the place of recognition: the reversal should have been recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Changing where it is recognised would not fix anything: the reversal would still be prohibited.","es":""}},{"id":"C","text":{"fr":"","en":"In the amount: the reversal should have been limited to half of the original loss.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no partial ceiling for goodwill: the reversal is simply prohibited.","es":""}},{"id":"D","text":{"fr":"","en":"There is no error: an internally developed reputation justifies reversing goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"An internally developed reputation is precisely why the reversal is prohibited.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000403","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL","IAS36.REVERSAL.CGU"],"dimension":"ANALYSIS","context":"V1_QST.IAS36.000403","tested_point":"QST.IAS36.000403","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"cgu-reversal-rule"},"references":["IAS 36 §124","IAS 36 §122"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the reversal rules for a cash-generating unit as follows. Which sentence of the summary contains an error?","es":""},"explanation":{"fr":"","en":"Sentence B is wrong: an impairment loss for goodwill is never reversed, even if its causes have disappeared (IAS 36, para. 124). The other sentences are correct: a reversal for a unit is allocated to the assets other than goodwill, pro rata to their carrying amounts (IAS 36, para. 122).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reversal for a unit is allocated pro rata to the carrying amounts of the assets concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the allocation is pro rata to carrying amounts.","es":""}},{"id":"B","text":{"fr":"","en":"A goodwill loss is reversed when the reasons that led to it have disappeared.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill is excluded from the allocation base of a reversal for a unit.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: goodwill takes no part in the allocation.","es":""}},{"id":"D","text":{"fr":"","en":"The unit's other assets can receive a reversal even if goodwill stays impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: only the goodwill loss is irreversible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000404","standard_id":"IAS36","concept_ids":["IAS36.REVERSAL.GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000404","tested_point":"QST.IAS36.000404","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000017","section_id":"no-goodwill-reversal"},"references":["IAS 36","IAS 36 §124"],"exercise":{"prompt":{"fr":"","en":"The goodwill of Iridane's Sensors unit was fully impaired in 20X1. In 20X3, thanks to innovations designed by its own teams, the unit's value is well above its carrying amount. Management proposes to reinstate goodwill up to the 20X1 loss. What answer should be given?","es":""},"explanation":{"fr":"","en":"The goodwill loss is final (IAS 36, para. 124). The increase in value here comes from innovations by Iridane's teams: it is internally generated goodwill, which IAS 38 prohibits from being recognised, and that is the basis for the prohibition on reversal (IAS 36, para. 125).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accept, because the 20X1 loss is now contradicted by the facts.","es":""},"correct":false,"feedback":{"fr":"","en":"A goodwill loss is not reversed even if later developments seem to contradict it.","es":""}},{"id":"B","text":{"fr":"","en":"Accept, provided an independent valuer confirms the increase in the unit's value.","es":""},"correct":false,"feedback":{"fr":"","en":"Involving a valuer does not lift the prohibition on reversal.","es":""}},{"id":"C","text":{"fr":"","en":"Accept partially, up to the increase in value attributable solely to the innovations developed by the teams.","es":""},"correct":false,"feedback":{"fr":"","en":"No partial reversal is allowed: the increase linked to the innovations is precisely internally generated goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"Refuse: the goodwill loss is never reversed, and this increase is internally generated goodwill.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000405","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000405","tested_point":"QST.IAS36.000405","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"For each class of assets, what information about impairment losses and their reversals must an entity disclose?","es":""},"explanation":{"fr":"","en":"For each class of assets, the entity discloses the impairment losses and reversals recognised in profit or loss, stating the line items concerned, and the losses and reversals recognised in other comprehensive income for revalued assets (IAS 36, para. 126).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the impairment losses recognised in profit or loss, with the line items of the statement of profit or loss in which they are included.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer omits reversals and the amounts recognised in other comprehensive income.","es":""}},{"id":"B","text":{"fr":"","en":"The losses and reversals recognised in profit or loss, with the line items concerned, and those recognised in other comprehensive income on revalued assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The total amount of impairment losses for the year, across all classes, without separating out reversals of losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The information is broken down by class of assets and separates losses from reversals.","es":""}},{"id":"D","text":{"fr":"","en":"The recoverable amount, the basis for that amount and the discount rate used for each class of assets on the balance sheet.","es":""},"correct":false,"feedback":{"fr":"","en":"These items belong to the disclosures on each loss or reversal for an asset or unit, not to the breakdown by class.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000406","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000406","tested_point":"QST.IAS36.000406","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36","IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"When presenting information by class of assets, how is a class of assets defined?","es":""},"explanation":{"fr":"","en":"Information on losses and reversals is given by class of assets (IAS 36, para. 126). A class of assets is a grouping of assets of similar nature and use in the entity's operations (IAS 36, para. 127).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A grouping of assets of similar nature and use in the entity's operations.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"All the assets belonging to the same cash-generating unit, whatever their nature.","es":""},"correct":false,"feedback":{"fr":"","en":"A cash-generating unit can combine assets of very different natures; it is not a class of assets.","es":""}},{"id":"C","text":{"fr":"","en":"A reportable segment as defined in IFRS 8.","es":""},"correct":false,"feedback":{"fr":"","en":"Segments are the subject of separate disclosures; they do not define the class of assets.","es":""}},{"id":"D","text":{"fr":"","en":"All the assets impaired during the year, grouped by band of loss amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of the loss is not a grouping criterion: only the nature and use of the assets matter.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000407","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000407","tested_point":"QST.IAS36.000407","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"Tamsel revalues its land and measures its machinery at cost. In 20X2, it recognised impairment losses and reversals on both classes. Which of the following must it disclose for each class of assets?","es":""},"explanation":{"fr":"","en":"For each class of assets, the entity discloses the losses and reversals recognised in profit or loss and the line items concerned, and the losses and reversals recognised in other comprehensive income for revalued assets (IAS 36, para. 126). An average rate per class and a named list of assets are not part of these disclosures.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average discount rate used to test each class.","es":""},"correct":false,"feedback":{"fr":"","en":"The discount rate belongs to the disclosures specific to a loss or reversal for an asset or unit, not to the breakdown by class.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of impairment losses recognised in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The line items of the statement of profit or loss in which those losses and reversals are included.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A named list of each impaired asset in the class, with its acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"No named list of assets is required by class.","es":""}},{"id":"E","text":{"fr":"","en":"The amount of reversals of impairment losses recognised in profit or loss.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"For the revalued land, the losses and reversals recognised in other comprehensive income.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000408","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000408","tested_point":"QST.IAS36.000408","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §128","IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"Norlis is preparing its note on property, plant and equipment, which contains the reconciliation of opening and closing carrying amounts. Where may it present the year's losses and reversals broken down by class of assets?","es":""},"explanation":{"fr":"","en":"The disclosures by class (IAS 36, para. 126) may be presented with the other information disclosed for the class of assets, for example in the reconciliation of the opening and closing carrying amounts of property, plant and equipment required by IAS 16 (IAS 36, para. 128).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Necessarily in a separate note dealing exclusively with impairment, with no link to the notes that describe the property, plant and equipment concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"No stand-alone note is required: the information can be included with the information for the class.","es":""}},{"id":"B","text":{"fr":"","en":"With the other information disclosed for the class, for example in the reconciliation of carrying amounts required by IAS 16.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only in the management report, outside the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"This information is part of the financial statements; the management report does not replace it.","es":""}},{"id":"D","text":{"fr":"","en":"Directly in the statement of financial position, as a deduction from each line item, with no information in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"A mere deduction on the balance sheet does not provide the required information on losses and reversals.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000409","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000409","tested_point":"QST.IAS36.000409","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §129"],"exercise":{"prompt":{"fr":"","en":"The Valtrion group presents segment information under IFRS 8 with three reportable segments. In 20X3 it recognised impairment losses and reversals, in profit or loss and, for revalued assets, in other comprehensive income. Which of the following must it disclose for each reportable segment?","es":""},"explanation":{"fr":"","en":"An entity that reports segment information under IFRS 8 discloses, for each reportable segment, the amount of impairment losses and reversals for the year, recognised in profit or loss and in other comprehensive income (IAS 36, para. 129). A segment's recoverable amount and key assumptions by segment are not part of this information.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The overall recoverable amount of each segment.","es":""},"correct":false,"feedback":{"fr":"","en":"The Standard does not require a recoverable amount by segment; it requires the amounts of losses and reversals.","es":""}},{"id":"B","text":{"fr":"","en":"The impairment losses for the year recognised in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The impairment losses for the year recognised in other comprehensive income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The reversals of impairment losses for the year recognised in profit or loss.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The reversals of impairment losses for the year recognised in other comprehensive income.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The key assumptions of value in use applied for each segment.","es":""},"correct":false,"feedback":{"fr":"","en":"Key assumptions are covered by other disclosures, linked to units rather than to the segment breakdown of losses.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000410","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000410","tested_point":"QST.IAS36.000410","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"Pelvane measures its office buildings under the revaluation model and its machinery at cost. In 20X2, an impairment loss of 50,000 was recognised on the buildings, of which 30,000 in other comprehensive income and 20,000 in profit or loss (split given), in the line item Depreciation, amortisation and impairment. A reversal of 8,000 was recognised in profit or loss on the machinery, in the line item Other income. For the Office buildings class, the draft note states only: impairment loss of 20,000 in profit or loss. What must be added?","es":""},"explanation":{"fr":"","en":"For each class of assets, the entity discloses the losses recognised in profit or loss with the line items concerned and, for revalued assets, the losses recognised in other comprehensive income (IAS 36, para. 126). For Pelvane's buildings, the loss of 30,000 in other comprehensive income and the line item including the loss of 20,000 are missing. The reversal of 8,000 belongs to the Machinery class and is presented separately.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Disclose the loss of 30,000 recognised in other comprehensive income and state the line item of profit or loss that includes the loss of 20,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing: by class, only losses recognised in profit or loss must be disclosed.","es":""},"correct":false,"feedback":{"fr":"","en":"For revalued assets, losses in other comprehensive income are also part of the information by class.","es":""}},{"id":"C","text":{"fr":"","en":"Present a loss of 50,000 in profit or loss, reclassifying the part recognised in other comprehensive income to simplify the note.","es":""},"correct":false,"feedback":{"fr":"","en":"Notes do not change the accounting: the part in other comprehensive income remains presented as such.","es":""}},{"id":"D","text":{"fr":"","en":"Add the reversal of 8,000 on the machinery to the line of the Office buildings class, so as to present a net amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversals are presented in their own class of assets, without offsetting against another class.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000411","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000411","tested_point":"QST.IAS36.000411","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36"],"exercise":{"prompt":{"fr":"","en":"In 20X3, the Ostrel group recognised several impairment losses on various assets, totalling 90,000: 60,000 on store fittings after shops were closed and 30,000 on software that became obsolete following a change in technology. These losses are not covered by the detailed disclosures required for each loss (given). What information must it disclose for these losses as a whole?","es":""},"explanation":{"fr":"","en":"For the aggregate losses and reversals of the period that are not disclosed individually, the entity discloses the main classes of assets affected and the main events and circumstances that led to their recognition (IAS 36, para. 131). Ostrel therefore mentions the fittings and the software, as well as the shop closures and the change in technology.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since these losses are not disclosed individually.","es":""},"correct":false,"feedback":{"fr":"","en":"Aggregate information is still required for losses not disclosed individually.","es":""}},{"id":"B","text":{"fr":"","en":"For each of these losses, the recoverable amount, its basis and the discount rate used.","es":""},"correct":false,"feedback":{"fr":"","en":"This detailed information concerns each loss presented individually, which is not the case here.","es":""}},{"id":"C","text":{"fr":"","en":"Only the total of 90,000, with no indication of the classes of assets or the causes.","es":""},"correct":false,"feedback":{"fr":"","en":"The total alone is not enough: the main classes and causes must be stated.","es":""}},{"id":"D","text":{"fr":"","en":"The main classes of assets affected (fittings, software) and the main events and circumstances that led to the losses.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000412","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.BY_CLASS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000412","tested_point":"QST.IAS36.000412","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"by-class-and-segment"},"references":["IAS 36 §129","IAS 36 §126"],"exercise":{"prompt":{"fr":"","en":"Ambrel does not present segment information under IFRS 8 (given). In 20X2 it recognised impairment losses on its warehouses and vehicles. What is its position regarding disclosures by segment and by class of assets?","es":""},"explanation":{"fr":"","en":"Disclosures by segment are required from entities that report segment information under IFRS 8 (IAS 36, para. 129). Disclosures by class of assets do not depend on segment reporting: Ambrel discloses for each class the losses and reversals in profit or loss, with the line items concerned, and, where relevant, those in other comprehensive income (IAS 36, para. 126).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It must define segments solely for IAS 36 purposes and break its impairment losses down by them.","es":""},"correct":false,"feedback":{"fr":"","en":"The Standard does not require segments to be created for IAS 36: the requirement targets entities that already report segment information.","es":""}},{"id":"B","text":{"fr":"","en":"Segment disclosures do not apply to it, but it discloses losses and reversals by class of assets, with the line items concerned.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is exempt from both segment disclosures and disclosures by class of assets, since it has no segments to report in its financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures by class remain required, regardless of segment reporting.","es":""}},{"id":"D","text":{"fr":"","en":"It must provide segment disclosures, but only for reversals of impairment losses.","es":""},"correct":false,"feedback":{"fr":"","en":"Segment disclosures, where they apply, cover both losses and reversals; they do not apply here.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000413","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000413","tested_point":"QST.IAS36.000413","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Corvail, which reports segment information, recognised a material impairment loss of 400,000 in 20X2 on a production line in its Industry segment. The line's recoverable amount is its value in use. Which of the following must it disclose about this loss?","es":""},"explanation":{"fr":"","en":"For an asset for which a loss or reversal was recognised during the period, the entity discloses in particular the events and circumstances that led to the loss, its amount, the nature of the asset and, where relevant, its segment, and the recoverable amount and its basis (fair value less costs of disposal or value in use) (IAS 36, para. 130). The identity of the service provider and a forecast loss are not among these disclosures.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The name of the firm that performed the impairment test.","es":""},"correct":false,"feedback":{"fr":"","en":"The identity of the valuer is not required information.","es":""}},{"id":"B","text":{"fr":"","en":"The events and circumstances that led to the recognition of the loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of the impairment loss recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The nature of the asset and the reportable segment to which it belongs.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The amount of the impairment loss expected for the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures concern the loss of the period, not a future loss.","es":""}},{"id":"F","text":{"fr":"","en":"The line's recoverable amount and the fact that it is its value in use.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000414","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000414","tested_point":"QST.IAS36.000414","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"The Hollis group recognised a material impairment loss on its West Network cash-generating unit. The unit's recoverable amount is its value in use, calculated with a discount rate of 9%, compared with 8% in the previous estimate. Regarding the recoverable amount, which of the following must be disclosed?","es":""},"explanation":{"fr":"","en":"When the recoverable amount is value in use, the entity discloses that basis and the discount rate used in the current estimate and in the previous estimate (IAS 36, para. 130). The hierarchy level, the valuation technique and the key assumptions specific to fair value only apply where the recoverable amount is fair value less costs of disposal.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fact that the recoverable amount is value in use.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The level of the IFRS 13 fair value hierarchy within which the measurement is categorised.","es":""},"correct":false,"feedback":{"fr":"","en":"The hierarchy level concerns a recoverable amount based on fair value less costs of disposal.","es":""}},{"id":"C","text":{"fr":"","en":"The discount rate of 9% used for the current estimate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The discount rate of 8% used in the previous estimate.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The valuation technique and key assumptions specific to a Level 3 fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"These disclosures relate to a recoverable amount based on fair value, not value in use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000415","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000415","tested_point":"QST.IAS36.000415","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Dravos has materially impaired a cold-storage warehouse. Its recoverable amount is fair value less costs of disposal, categorised within Level 3 of the IFRS 13 hierarchy and determined by discounting cash flows (valuer's data). Which of the following must Dravos disclose?","es":""},"explanation":{"fr":"","en":"When the recoverable amount is fair value less costs of disposal, the entity discloses the IFRS 13 hierarchy level; for a Level 2 or Level 3 measurement, it describes the valuation technique and the key assumptions, and discloses the discount rate if a present value technique is used (IAS 36, para. 130). Value in use rates only concern the case where the recoverable amount is value in use.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The current and previous discount rates of the warehouse's value in use.","es":""},"correct":false,"feedback":{"fr":"","en":"Current and previous rates are required when the recoverable amount is value in use, which is not the case here.","es":""}},{"id":"B","text":{"fr":"","en":"The level of the fair value hierarchy within which the measurement is categorised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The valuation technique used.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The key assumptions used in the measurement.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The discount rate used, since a present value technique was applied.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"A year-by-year breakdown of the projected cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"The breakdown of annual cash flows is not part of the required disclosures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000416","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000416","tested_point":"QST.IAS36.000416","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Ravelle recognised a material impairment loss of 250,000 on its South Distribution cash-generating unit. This year the unit was redefined: two depots previously tested separately are now grouped in it. What must the note contain as the description of the unit?","es":""},"explanation":{"fr":"","en":"For a unit for which a loss was recognised, the entity describes the unit, discloses the amount of the loss by class of assets and, where relevant, by segment, and, if the aggregation of the unit's assets has changed, describes that change (IAS 36, para. 130). Ravelle must therefore mention the grouping of the two depots.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the total amount of the unit's loss, i.e. 250,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The total amount is not enough: the description of the unit and the breakdown by class are required.","es":""}},{"id":"B","text":{"fr":"","en":"A description of the unit, the amount of the loss by class of assets, and by segment where relevant, and a description of the change in the aggregation of assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A description of the unit and the breakdown of the loss by class of assets, without mentioning the redefinition, since the loss was measured on the unit's current scope and the former structure no longer exists at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The change in aggregation must be described even though the loss is measured on the current scope.","es":""}},{"id":"D","text":{"fr":"","en":"A restatement of prior-year losses on the basis of the unit's new scope.","es":""},"correct":false,"feedback":{"fr":"","en":"The required information is a description of the change, not a restatement of prior years.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000417","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000417","tested_point":"QST.IAS36.000417","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"Tavira's draft note states: following a lasting fall in occupancy, an impairment loss of 180,000 was recognised on the Lake hotel, whose recoverable amount is 1,200,000. This recoverable amount is value in use, calculated with a discount rate of 8% (7% in the previous estimate). What is missing?","es":""},"explanation":{"fr":"","en":"In addition to the events, the amount and the recoverable amount, the entity discloses the basis of that amount and, if it is value in use, the discount rate of the current estimate and that of the previous estimate (IAS 36, para. 130). Tavira must state that the recoverable amount is value in use and mention the rates of 8% and 7%.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: the note already mentions the event, the amount of the loss and the recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The basis of the recoverable amount and the discount rates are missing.","es":""}},{"id":"B","text":{"fr":"","en":"The level of the fair value hierarchy within which the hotel is categorised.","es":""},"correct":false,"feedback":{"fr":"","en":"The hierarchy level concerns a recoverable amount based on fair value, not value in use.","es":""}},{"id":"C","text":{"fr":"","en":"Only the rate of 8%, since the rate used in the previous estimate need not be disclosed in the note.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate of the previous estimate is also required for value in use.","es":""}},{"id":"D","text":{"fr":"","en":"The basis of the recoverable amount (value in use) and the discount rates of 8% and 7%.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000418","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.MATERIAL_EVENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000418","tested_point":"QST.IAS36.000418","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"each-loss-or-reversal"},"references":["IAS 36 §130"],"exercise":{"prompt":{"fr":"","en":"The Mireval group, which reports segment information, reversed in 20X3 a material impairment loss of 70,000 on a patent in its Health segment, following a regulatory approval. The patent's recoverable amount is its fair value less costs of disposal, categorised within Level 2 of the IFRS 13 hierarchy and determined using a market approach, without discounting (valuer's data). The draft note mentions only the amount of the reversal and the approval obtained. How should it be completed?","es":""},"explanation":{"fr":"","en":"The detailed disclosures apply to any asset for which a loss or a reversal was recognised during the period: events, amount, nature of the asset and segment, recoverable amount and its basis; for fair value less costs of disposal, the hierarchy level and, for Levels 2 and 3, the valuation technique and key assumptions (IAS 36, para. 130). For fair value, the discount rate is required only when a present value technique is used, which is not the case here.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is nothing to add: the detailed disclosures concern impairment losses, not their reversals.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversals of losses are covered in the same way as losses.","es":""}},{"id":"B","text":{"fr":"","en":"Add the nature of the asset and its segment, the recoverable amount and its basis, Level 2 of the hierarchy, and the valuation technique and key assumptions.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Add the current and previous discount rates, as for any recoverable amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Current and previous rates concern value in use; here no present value technique is used.","es":""}},{"id":"D","text":{"fr":"","en":"Add only the nature of the asset and its segment, since the basis of the recoverable amount need not be disclosed for a reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The basis of the recoverable amount must be disclosed for a reversal as for a loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000421","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000421","tested_point":"QST.IAS36.000421","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"The Sarrel group has allocated to its Beverages cash-generating unit goodwill that is significant compared with total goodwill. The unit's recoverable amount is its value in use; no loss was recognised in 20X2. Which of the following must be disclosed for this unit?","es":""},"explanation":{"fr":"","en":"For each unit to which significant goodwill or a significant intangible asset with an indefinite useful life is allocated, the entity discloses the carrying amounts allocated, the basis of the recoverable amount, the key assumptions and management's approach, the projection period and growth rate, the discount rate and, where relevant, a sensitivity analysis (IAS 36, para. 134). These disclosures are required even when no impairment loss arises in the year.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of goodwill allocated to the unit.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The list of the unit's main customers and their share of revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures concern the estimates of recoverable amount, not the customer base.","es":""}},{"id":"C","text":{"fr":"","en":"The basis of the unit's recoverable amount, here value in use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The key assumptions used and management's approach to determining the values assigned to them.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The period of the cash flow projections and the growth rate used beyond it.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The discount rate applied to the projections.","es":""},"correct":true},{"id":"G","text":{"fr":"","en":"The amount of impairment losses expected over the next five years.","es":""},"correct":false,"feedback":{"fr":"","en":"No forecast of future losses is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000422","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS36.000422","tested_point":"QST.IAS36.000422","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36 §133","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"In November 20X4, Halvren acquired the Pirsa group. At the reporting date of 31 December 20X4, part of the resulting goodwill has not yet been allocated to a cash-generating unit, the initial allocation not being complete (a situation consistent with IAS 36, given). Which of the following must Halvren disclose?","es":""},"explanation":{"fr":"","en":"If part of the goodwill acquired in a business combination during the period has not been allocated to a unit at the reporting date, the entity discloses that amount and the reasons why it remains unallocated (IAS 36, para. 133). The detailed disclosures by unit (IAS 36, para. 134) concern the units to which significant goodwill is allocated.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A provisional and arbitrary allocation of this goodwill among existing units, presented as final.","es":""},"correct":false,"feedback":{"fr":"","en":"The notes need not present an allocation that has not yet been made.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of goodwill not yet allocated.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reasons why that amount remains unallocated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The value in use of each unit that might receive this goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"No value in use is required for units that have not yet received this goodwill.","es":""}},{"id":"E","text":{"fr":"","en":"No information, since unallocated goodwill is not attached to any unit.","es":""},"correct":false,"feedback":{"fr":"","en":"Unallocated goodwill, on the contrary, calls for specific disclosure.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000423","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000423","tested_point":"QST.IAS36.000423","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"The retail chain Zephan has spread total goodwill of 3,000,000 across 12 regional cash-generating units; the amount allocated to each is not significant compared with total goodwill. For 8 of these units, which together carry 2,200,000 of goodwill, a significant amount, the recoverable amount is based on the same key assumptions (footfall and margin). What information must Zephan disclose?","es":""},"explanation":{"fr":"","en":"When goodwill is spread across several units with no significant amount for each, the entity discloses that fact and the total allocated. If the recoverable amounts of some of these units are based on the same key assumptions and the total allocated to them is significant, it discloses that fact, that total, a description of the assumptions, management's approach and, where relevant, a sensitivity analysis (IAS 36, para. 135). Unit-by-unit disclosures (IAS 36, para. 134) concern units carrying significant goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since the goodwill allocated to each unit, taken individually, is not significant.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a significant amount per unit does not remove the aggregate disclosure requirement.","es":""}},{"id":"B","text":{"fr":"","en":"All the detailed disclosures required for a significant unit, on a mandatory basis for each of the 12 units.","es":""},"correct":false,"feedback":{"fr":"","en":"Detailed disclosures by unit are required only for units carrying significant goodwill.","es":""}},{"id":"C","text":{"fr":"","en":"The fact that goodwill is spread across several non-significant units and its total of 3,000,000; for the 8 units, that fact, the total of 2,200,000, a description of the common key assumptions, management's approach and, where relevant, a sensitivity analysis.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only the total of 3,000,000 spread across the 12 units.","es":""},"correct":false,"feedback":{"fr":"","en":"The total alone is not enough for the 8 units that share key assumptions and carry a significant amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000424","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000424","tested_point":"QST.IAS36.000424","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36 §134","IAS 36"],"exercise":{"prompt":{"fr":"","en":"Lumen has allocated significant goodwill of 900,000 to its Vision cash-generating unit. In the 20X3 test, value in use exceeds the unit's carrying amount by only 4%. Management considers reasonably possible a 1 point increase in the discount rate, which would make the carrying amount exceed the recoverable amount. No loss is recognised. What should be done regarding disclosures?","es":""},"explanation":{"fr":"","en":"For a unit carrying significant goodwill, the entity discloses a sensitivity analysis when a reasonably possible change in a key assumption would give rise to a loss (IAS 36, para. 134). This is a requirement, distinct from the merely encouraged disclosure of assumptions for other assets or units (IAS 36, para. 132). No loss is recognised as long as the recoverable amount stays above the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add nothing: as no loss is recognised, the sensitivity of the recoverable amount need not be discussed.","es":""},"correct":false,"feedback":{"fr":"","en":"The sensitivity analysis is required precisely when no loss is recognised but the headroom is narrow.","es":""}},{"id":"B","text":{"fr":"","en":"In addition to the other information on the unit, disclose a sensitivity analysis on the discount rate, since a reasonably possible change in this key assumption would give rise to a loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Treat the sensitivity analysis as merely encouraged, like the assumptions for units without goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"For a unit carrying significant goodwill, the disclosure is mandatory, not merely encouraged.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise, out of prudence, an impairment loss equal to the 4% headroom, which removes the need for a sensitivity analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence does not justify a loss not shown by the test; the sensitivity disclosure is still required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000425","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000425","tested_point":"QST.IAS36.000425","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"In 20X2, Brisk determined the recoverable amount of two cash-generating units: Transport, which carries neither goodwill nor an intangible asset with an indefinite useful life, and Media, which carries significant goodwill. What is the position on disclosing the key assumptions used?","es":""},"explanation":{"fr":"","en":"The entity is encouraged to disclose the assumptions used to determine the recoverable amount of assets or units during the period (IAS 36, para. 132). However, for a unit carrying significant goodwill or a significant intangible asset with an indefinite useful life, the key assumptions and management's approach must be disclosed (IAS 36, para. 134). For Brisk: encouraged for Transport, mandatory for Media.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is mandatory for both units.","es":""},"correct":false,"feedback":{"fr":"","en":"For Transport, with no goodwill or indefinite-life intangible asset, the disclosure is only encouraged.","es":""}},{"id":"B","text":{"fr":"","en":"It is merely encouraged for both units, since neither has been impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"For Media, the requirement applies even without an impairment loss.","es":""}},{"id":"C","text":{"fr":"","en":"It is mandatory for Transport and optional for Media.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: the requirement targets the unit carrying significant goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"It is encouraged for Transport and mandatory for Media.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS36.000426","standard_id":"IAS36","concept_ids":["IAS36.DISCLOSURE.ESTIMATES_GOODWILL"],"dimension":"APPLICATION","context":"V1_QST.IAS36.000426","tested_point":"QST.IAS36.000426","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS36","lesson_id":"LS.IAS36.000018","section_id":"estimates-goodwill"},"references":["IAS 36 §136","IAS 36 §134"],"exercise":{"prompt":{"fr":"","en":"For its Cables cash-generating unit, which carries significant goodwill, Quartz carries forward in 20X3 the detailed calculation of recoverable amount made in the previous period, the IAS 36 carry-forward conditions being met (given). The finance director wonders how to prepare the disclosures on this unit's estimates. Which answer is correct?","es":""},"explanation":{"fr":"","en":"When a detailed calculation of recoverable amount made in a prior period is carried forward, it may be used as the basis for the disclosures on the estimates of units carrying significant goodwill (IAS 36, para. 136). These disclosures remain required: carrying amounts, basis of the recoverable amount, key assumptions, period, rates and, where relevant, sensitivity (IAS 36, para. 134).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A new full calculation is needed solely for the notes, since the carried-forward calculation cannot serve as the basis for the disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"The carried-forward calculation can precisely serve as the basis for the disclosures.","es":""}},{"id":"B","text":{"fr":"","en":"No disclosure of estimates is required this year, since no new calculation has been made.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying the calculation forward does not remove the disclosure requirement.","es":""}},{"id":"C","text":{"fr":"","en":"The disclosures on the unit's estimates may be based on the calculation carried forward from the previous period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only the carrying amount of the unit's goodwill must be disclosed while the calculation is carried forward.","es":""},"correct":false,"feedback":{"fr":"","en":"All the disclosures on estimates remain required, not just the carrying amount of goodwill.","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS16.000166":"Impairment (by reference to IAS 36) and compensation from third parties — The rule: IAS 16 refers to IAS 36","LX.IAS16.000167":"Impairment (by reference to IAS 36) and compensation from third parties — The rule: IAS 16 refers to IAS 36","LX.IAS16.000168":"Impairment (by reference to IAS 36) and compensation from third parties — After impairment: recalculated depreciation","LX.IAS16.000169":"Impairment (by reference to IAS 36) and compensation from third parties — Journal entries: four events, four entries","LX.IAS16.000174":"Impairment (by reference to IAS 36) and compensation from third parties — Numeric example: the factory fire","LX.IAS36.000001":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","LX.IAS36.000002":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","LX.IAS36.000003":"Why impair? Objective and scope of IAS 36 — Investments: a financial asset… within the scope of IAS 36","LX.IAS36.000004":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","LX.IAS36.000005":"Why impair? Objective and scope of IAS 36 — Points to watch","LX.IAS36.000006":"Why impair? Objective and scope of IAS 36 — Revalued assets stay within scope","LX.IAS36.000007":"Why impair? Objective and scope of IAS 36 — An asset is a promise of future cash","LX.IAS36.000008":"The vocabulary of impairment — The key definitions","LX.IAS36.000009":"The vocabulary of impairment — Worked example: the full chain","LX.IAS36.000010":"The vocabulary of impairment — Recoverable amount: the higher one, and a useful shortcut","LX.IAS36.000011":"The vocabulary of impairment — The key definitions","LX.IAS36.000012":"The vocabulary of impairment — The entry and what follows","LX.IAS36.000013":"The vocabulary of impairment — Recoverable amount: the higher one, and a useful shortcut","LX.IAS36.000014":"The vocabulary of impairment — Points to watch","LX.IAS36.000015":"The vocabulary of impairment — Worked example: the full chain","LX.IAS36.000016":"The vocabulary of impairment — The entry and what follows","LX.IAS36.000017":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","LX.IAS36.000018":"When to test? Every reporting date and every year — Why these three categories?","LX.IAS36.000019":"When to test? Every reporting date and every year — The three mandatory annual tests","LX.IAS36.000020":"When to test? Every reporting date and every year — The date of the annual test","LX.IAS36.000021":"When to test? Every reporting date and every year — The date of the annual test","LX.IAS36.000022":"When to test? Every reporting date and every year — The method, step by step","LX.IAS36.000023":"When to test? Every reporting date and every year — Worked example: a loss revealed with no indicator at all","LX.IAS36.000024":"When to test? Every reporting date and every year — The three mandatory annual tests","LX.IAS36.000025":"When to test? Every reporting date and every year — Points to watch","LX.IAS36.000026":"Indicators of impairment and their materiality — Internal indicators","LX.IAS36.000027":"Indicators of impairment and their materiality — The indicator specific to dividends from investments","LX.IAS36.000028":"Indicators of impairment and their materiality — Example: an automotive supplier at the reporting date","LX.IAS36.000029":"Indicators of impairment and their materiality — External indicators","LX.IAS36.000030":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","LX.IAS36.000031":"Indicators of impairment and their materiality — The indicator specific to dividends from investments","LX.IAS36.000032":"Indicators of impairment and their materiality — Worked example: no loss, but a shorter life","LX.IAS36.000033":"Indicators of impairment and their materiality — Points to watch","LX.IAS36.000034":"Indicators of impairment and their materiality — Professional judgment: weak signals, conflicting signals","LX.IAS36.000037":"Recoverable amount: the higher of two measures — Worked example: the P-12 press","LX.IAS36.000038":"Recoverable amount: the higher of two measures — Fair value less costs of disposal: which costs to deduct?","LX.IAS36.000039":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","LX.IAS36.000040":"Recoverable amount: the higher of two measures — Fair value less costs of disposal: which costs to deduct?","LX.IAS36.000041":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","LX.IAS36.000042":"Recoverable amount: the higher of two measures — Common errors","LX.IAS36.000043":"Recoverable amount: the higher of two measures — Areas of judgment and documentation","LX.IAS36.000044":"Recoverable amount: the higher of two measures — The entry for the loss on the P-12 press","LX.IAS36.000045":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","LX.IAS36.000046":"Value in use (1): elements of the calculation and basis for projections — Worked example: the value in use of the Reims packaging plant","LX.IAS36.000047":"Value in use (1): elements of the calculation and basis for projections — What the asset is worth to the entity that keeps it","LX.IAS36.000048":"Value in use (1): elements of the calculation and basis for projections — Beyond the budget: horizon and growth rate","LX.IAS36.000049":"Value in use (1): elements of the calculation and basis for projections — Common errors","LX.IAS36.000050":"Value in use (1): elements of the calculation and basis for projections — Worked example: the value in use of the Reims packaging plant","LX.IAS36.000051":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","LX.IAS36.000052":"Value in use (1): elements of the calculation and basis for projections — Judging and documenting management's assumptions","LX.IAS36.000053":"Value in use (1): elements of the calculation and basis for projections — Why an entity-specific value, different from fair value?","LX.IAS36.000054":"Value in use (1): elements of the calculation and basis for projections — Building a value in use step by step","LX.IAS36.000055":"Value in use (2): which cash flows to include? — What the cash flows include","LX.IAS36.000056":"Value in use (2): which cash flows to include? — Worked example: the budget of packaging line L3","LX.IAS36.000057":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","LX.IAS36.000058":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","LX.IAS36.000059":"Value in use (2): which cash flows to include? — Foreign currency cash flows","LX.IAS36.000060":"Value in use (2): which cash flows to include? — Common errors","LX.IAS36.000061":"Value in use (2): which cash flows to include? — The tricky boundaries","LX.IAS36.000062":"Value in use (2): which cash flows to include? — What the cash flows include","LX.IAS36.000063":"Value in use (2): which cash flows to include? — Foreign currency cash flows","LX.IAS36.000064":"Value in use (3): discount rate and present value techniques — Worked examples: expected cash flows, uncertain timing, rates per period","LX.IAS36.000065":"Value in use (3): discount rate and present value techniques — Expected cash flows in practice: objections and answers","LX.IAS36.000066":"Value in use (3): discount rate and present value techniques — Building the rate: starting rates, adjustments, rates per period","LX.IAS36.000067":"Value in use (3): discount rate and present value techniques — Building the rate: starting rates, adjustments, rates per period","LX.IAS36.000068":"Value in use (3): discount rate and present value techniques — Common errors","LX.IAS36.000069":"Value in use (3): discount rate and present value techniques — Worked examples: expected cash flows, uncertain timing, rates per period","LX.IAS36.000070":"Value in use (3): discount rate and present value techniques — Expected cash flows in practice: objections and answers","LX.IAS36.000071":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","LX.IAS36.000072":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","LX.IAS36.000073":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","LX.IAS36.000074":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","LX.IAS36.000075":"Recognising an impairment loss — The entries for both cases","LX.IAS36.000076":"Recognising an impairment loss — Revalued asset: first the revaluation surplus, then profit or loss","LX.IAS36.000077":"Recognising an impairment loss — After the loss: a new depreciation charge","LX.IAS36.000078":"Recognising an impairment loss — When the estimated loss exceeds the carrying amount","LX.IAS36.000079":"Recognising an impairment loss — Points of attention","LX.IAS36.000080":"Recognising an impairment loss — The effect on deferred tax","LX.IAS36.000081":"Recognising an impairment loss — Professional judgement and documentation","LX.IAS36.000082":"Recognising an impairment loss — The six-step method","LX.IAS36.000083":"Identifying the cash-generating unit — When an asset cannot be tested on its own","LX.IAS36.000084":"Identifying the cash-generating unit — Example: four situations in the same group","LX.IAS36.000085":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","LX.IAS36.000086":"Identifying the cash-generating unit — Worked example: replacing an internal price","LX.IAS36.000087":"Identifying the cash-generating unit — The indicators: how management monitors and decides","LX.IAS36.000088":"Identifying the cash-generating unit — A consistent split from one period to the next","LX.IAS36.000089":"Identifying the cash-generating unit — Example: four situations in the same group","LX.IAS36.000090":"Identifying the cash-generating unit — Points of attention","LX.IAS36.000091":"Identifying the cash-generating unit — Professional judgement and documentation","LX.IAS36.000092":"The carrying amount of a CGU — What goes in, what stays out","LX.IAS36.000093":"The carrying amount of a CGU — What goes in, what stays out","LX.IAS36.000094":"The carrying amount of a CGU — Worked example: the carrying amount of a workshop","LX.IAS36.000095":"The carrying amount of a CGU — When a buyer would assume a liability","LX.IAS36.000096":"The carrying amount of a CGU — When a buyer would assume a liability","LX.IAS36.000097":"The carrying amount of a CGU — What goes in, what stays out","LX.IAS36.000098":"The carrying amount of a CGU — Items included for practical reasons: symmetry","LX.IAS36.000099":"The carrying amount of a CGU — Items included for practical reasons: symmetry","LX.IAS36.000100":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","LX.IAS36.000101":"Allocating goodwill to CGUs — Test level and IAS 21 level: two separate questions","LX.IAS36.000102":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","LX.IAS36.000103":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","LX.IAS36.000104":"Allocating goodwill to CGUs — The disposal entry","LX.IAS36.000105":"Allocating goodwill to CGUs — Reorganising CGUs: reallocating goodwill","LX.IAS36.000106":"Allocating goodwill to CGUs — Example: where should the goodwill of an acquisition sit?","LX.IAS36.000107":"Allocating goodwill to CGUs — Points of attention","LX.IAS36.000108":"Allocating goodwill to CGUs — Professional judgement and documentation","LX.IAS36.000109":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","LX.IAS36.000110":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","LX.IAS36.000111":"Testing CGUs that carry goodwill — Reusing the most recent detailed calculation","LX.IAS36.000112":"Testing CGUs that carry goodwill — Simple example: the 'Southern Distribution' CGU","LX.IAS36.000113":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","LX.IAS36.000114":"Testing CGUs that carry goodwill — Numeric example: the order of testing changes the result","LX.IAS36.000115":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","LX.IAS36.000116":"Testing CGUs that carry goodwill — Numeric example: 80%-owned subsidiary forming a CGU","LX.IAS36.000117":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","LX.IAS36.000118":"Testing CGUs that carry goodwill — Numeric example: 80%-owned subsidiary forming a CGU","LX.IAS36.000119":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","LX.IAS36.000120":"Corporate assets — The rule: allocate if possible, otherwise test higher up","LX.IAS36.000121":"Corporate assets — Assets that serve everyone","LX.IAS36.000122":"Corporate assets — Simple example: what is a corporate asset?","LX.IAS36.000123":"Corporate assets — Numeric example: a head office allocated to three CGUs","LX.IAS36.000124":"Corporate assets — Numeric example: a head office allocated to three CGUs","LX.IAS36.000125":"Corporate assets — The rule: allocate if possible, otherwise test higher up","LX.IAS36.000126":"Corporate assets — Numeric example: corporate asset that cannot be allocated, two-stage test","LX.IAS36.000127":"Corporate assets — Points of attention","LX.IAS36.000128":"Corporate assets — The entries","LX.IAS36.000129":"Corporate assets — Professional judgement and documentation","LX.IAS36.000130":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","LX.IAS36.000131":"Allocating an impairment loss within a CGU — The step-by-step method","LX.IAS36.000132":"Allocating an impairment loss within a CGU — Simple example: goodwill is not enough","LX.IAS36.000133":"Allocating an impairment loss within a CGU — Numeric example: floor and reallocation","LX.IAS36.000134":"Allocating an impairment loss within a CGU — The 'North Plant' entry","LX.IAS36.000135":"Allocating an impairment loss within a CGU — Each asset's floor and reallocation","LX.IAS36.000136":"Allocating an impairment loss within a CGU — Each asset's floor and reallocation","LX.IAS36.000137":"Allocating an impairment loss within a CGU — Points of attention","LX.IAS36.000138":"Allocating an impairment loss within a CGU — Numeric example: floor and reallocation","LX.IAS36.000139":"Allocating an impairment loss within a CGU — Asset with no recoverable amount of its own and remainder that cannot be allocated","LX.IAS36.000140":"Allocating an impairment loss within a CGU — Example: the bottling line","LX.IAS36.000141":"Allocating an impairment loss within a CGU — Example: the bottling line","LX.IAS36.000142":"Allocating an impairment loss within a CGU — Asset with no recoverable amount of its own and remainder that cannot be allocated","LX.IAS36.000143":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","LX.IAS36.000144":"Allocating an impairment loss within a CGU — The step-by-step method","LX.IAS36.000145":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","LX.IAS36.000146":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","LX.IAS36.000147":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Numeric example: the capped reversal on a machine","LX.IAS36.000148":"Reversing an impairment loss: indicators, conditions and the cap for an asset — The entries for the reversal and the revised depreciation","LX.IAS36.000149":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","LX.IAS36.000150":"Reversing an impairment loss: indicators, conditions and the cap for an asset — The six-step method","LX.IAS36.000151":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Revalued asset: first profit or loss, then the revaluation surplus","LX.IAS36.000152":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Indicator of reversal without a reversal: review the life, method and residual value","LX.IAS36.000153":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","LX.IAS36.000154":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Numeric example: the capped reversal on a machine","LX.IAS36.000155":"Reversing an impairment loss: indicators, conditions and the cap for an asset — The six-step method","LX.IAS36.000156":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Numeric example: the capped reversal on a machine","LX.IAS36.000157":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","LX.IAS36.000158":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","LX.IAS36.000159":"Reversal for a CGU: allocation, caps and goodwill excluded — Simple example: a store that wins its customers back","LX.IAS36.000160":"Reversal for a CGU: allocation, caps and goodwill excluded — Numeric example: a plant with goodwill, a cap reached and a reallocation","LX.IAS36.000161":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","LX.IAS36.000162":"Reversal for a CGU: allocation, caps and goodwill excluded — The entry for the CGU reversal","LX.IAS36.000163":"Reversal for a CGU: allocation, caps and goodwill excluded — Points of attention","LX.IAS36.000164":"Reversal for a CGU: allocation, caps and goodwill excluded — Numeric example: a plant with goodwill, a cap reached and a reallocation","LX.IAS36.000165":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","LX.IAS36.000166":"Reversal for a CGU: allocation, caps and goodwill excluded — The way back… but not quite","LX.IAS36.000167":"Disclosures about impairment — Three levels of disclosure","LX.IAS36.000168":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","LX.IAS36.000169":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","LX.IAS36.000170":"Disclosures about impairment — Numeric example: building a group's disclosure tables","LX.IAS36.000171":"Disclosures about impairment — Points of attention","LX.IAS36.000172":"Disclosures about impairment — Professional judgement and documentation","LX.IAS36.000173":"Disclosures about impairment — Special cases: unallocated goodwill, dispersed goodwill, carried-forward calculation","LX.IAS36.000174":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","LX.IAS36.000175":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","LX.IAS36.000176":"Value in use (1): elements of the calculation and basis for projections — Judging and documenting management's assumptions","LX.IAS36.000177":"Identifying the cash-generating unit — A consistent split from one period to the next","LX.IAS36.000178":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","LX.IFRS16.000080":"Lessee after the commencement date: lease liability and right-of-use asset — Judgement: useful life, depreciation method, indications of impairment","QST.IAS36.000001":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000002":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000003":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000004":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000005":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000006":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000007":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000008":"Why impair? Objective and scope of IAS 36 — The objective of IAS 36: three questions","QST.IAS36.000009":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000010":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000011":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000012":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000013":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000014":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000015":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000016":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000017":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000018":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000019":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000020":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000021":"Why impair? Objective and scope of IAS 36 — Which assets fall under IAS 36?","QST.IAS36.000022":"The vocabulary of impairment — The key definitions","QST.IAS36.000023":"The vocabulary of impairment — The key definitions","QST.IAS36.000024":"The vocabulary of impairment — The key definitions","QST.IAS36.000025":"The vocabulary of impairment — The key definitions","QST.IAS36.000026":"The vocabulary of impairment — The key definitions","QST.IAS36.000027":"The vocabulary of impairment — The key definitions","QST.IAS36.000028":"The vocabulary of impairment — The key definitions","QST.IAS36.000029":"The vocabulary of impairment — The key definitions","QST.IAS36.000030":"The vocabulary of impairment — The key definitions","QST.IAS36.000031":"The vocabulary of impairment — The key definitions","QST.IAS36.000032":"The vocabulary of impairment — The key definitions","QST.IAS36.000033":"The vocabulary of impairment — The key definitions","QST.IAS36.000034":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000035":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000036":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000037":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000038":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000039":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000040":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000041":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000042":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000043":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000044":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000045":"When to test? Every reporting date and every year — The general rule: look for indicators at each reporting date","QST.IAS36.000046":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000047":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000048":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000049":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000050":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000051":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000052":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000053":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000054":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000055":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000056":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000057":"When to test? Every reporting date and every year — The three mandatory annual tests","QST.IAS36.000058":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000059":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000060":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000061":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000062":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000063":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000064":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000065":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000066":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000067":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000068":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000069":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000070":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","QST.IAS36.000071":"Indicators of impairment and their materiality — External indicators","QST.IAS36.000072":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","QST.IAS36.000073":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","QST.IAS36.000074":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","QST.IAS36.000075":"Indicators of impairment and their materiality — Materiality and sensitivity: when an indicator does not require a new calculation","QST.IAS36.000078":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000079":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000080":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000081":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000082":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000083":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000084":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000085":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000086":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000087":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000088":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000089":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000090":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000091":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000092":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000093":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000094":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000095":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000096":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000097":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000098":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000099":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000100":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000101":"Recoverable amount: the higher of two measures — At what level? The individual asset first, otherwise its CGU","QST.IAS36.000102":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000103":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000104":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000105":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000106":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000107":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000108":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000109":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000110":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000111":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000112":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000113":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000114":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000115":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000116":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000117":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000118":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000119":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000120":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000121":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000122":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000123":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000124":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000125":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000126":"Value in use (1): elements of the calculation and basis for projections — The five elements value in use must reflect","QST.IAS36.000127":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000128":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000129":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000130":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000131":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000132":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000133":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000134":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000135":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000138":"Value in use (1): elements of the calculation and basis for projections — Projections: three basic requirements","QST.IAS36.000139":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000140":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000141":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000142":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000143":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000144":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000145":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000146":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000147":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000148":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000149":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000150":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000151":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000152":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","QST.IAS36.000153":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","QST.IAS36.000154":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000155":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000156":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","QST.IAS36.000157":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","QST.IAS36.000158":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000159":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000160":"Value in use (2): which cash flows to include? — The asset in its current condition: restructurings and enhancements","QST.IAS36.000161":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000164":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000165":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000166":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000167":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000168":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000169":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000170":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000171":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000172":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000173":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000174":"Value in use (2): which cash flows to include? — What the cash flows include","QST.IAS36.000175":"Value in use (2): which cash flows to include? — Financing, tax, inflation: consistency with the rate","QST.IAS36.000176":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000177":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000178":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000179":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000180":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000181":"Value in use (2): which cash flows to include? — Foreign currency cash flows","QST.IAS36.000182":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000183":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000184":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000185":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000186":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000187":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000188":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000189":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000190":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000191":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000192":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000193":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000194":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000195":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000197":"Value in use (3): discount rate and present value techniques — The characteristics of the discount rate","QST.IAS36.000198":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000199":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000200":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000201":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000202":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000203":"Value in use (3): discount rate and present value techniques — Traditional approach and expected cash flow approach (Appendix A)","QST.IAS36.000204":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000205":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000206":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000207":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000208":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000209":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000210":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000213":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000214":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000215":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000216":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000217":"Recognising an impairment loss — Revalued asset: first the revaluation surplus, then profit or loss","QST.IAS36.000218":"Recognising an impairment loss — Revalued asset: first the revaluation surplus, then profit or loss","QST.IAS36.000221":"Recognising an impairment loss — Revalued asset: first the revaluation surplus, then profit or loss","QST.IAS36.000222":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000223":"Recognising an impairment loss — Revalued asset: first the revaluation surplus, then profit or loss","QST.IAS36.000224":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000225":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000226":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000227":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000230":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000231":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000232":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000233":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000234":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000235":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000236":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000237":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000238":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000239":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000240":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000241":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000244":"Identifying the cash-generating unit — The rule: the smallest group with largely independent inflows","QST.IAS36.000245":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","QST.IAS36.000246":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","QST.IAS36.000247":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","QST.IAS36.000248":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","QST.IAS36.000250":"Identifying the cash-generating unit — Output with an active market and internal transfer prices","QST.IAS36.000251":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000252":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000253":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000254":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000255":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000256":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000257":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000258":"Identifying the cash-generating unit — A consistent split from one period to the next","QST.IAS36.000259":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000260":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000261":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000262":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000263":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000264":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000265":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000266":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000267":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000268":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000269":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000270":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000271":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000272":"The carrying amount of a CGU — What goes in, what stays out","QST.IAS36.000273":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000274":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000275":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000276":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000277":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000278":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000279":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000280":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000281":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000282":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000284":"Allocating goodwill to CGUs — The allocation rule: synergies, internal monitoring, segment ceiling","QST.IAS36.000285":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000286":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000287":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000288":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000289":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000290":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000291":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000292":"Allocating goodwill to CGUs — The deadline for completing the initial allocation","QST.IAS36.000293":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000294":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000295":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000296":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000297":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000298":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000299":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000300":"Allocating goodwill to CGUs — Disposing of an operation within a CGU with goodwill","QST.IAS36.000301":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000302":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000303":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000304":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000305":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000306":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000307":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000308":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000309":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000310":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000311":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000312":"Testing CGUs that carry goodwill — The rule: every year, on a fixed date, and on indication","QST.IAS36.000313":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000314":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000315":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000316":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000317":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000318":"Testing CGUs that carry goodwill — The order of testing: from the smallest to the largest","QST.IAS36.000319":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000320":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000321":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000322":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000323":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000324":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000325":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000326":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000327":"Testing CGUs that carry goodwill — Appendix C: goodwill and non-controlling interests","QST.IAS36.000328":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000329":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000330":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000331":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000332":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000333":"Corporate assets — The rule: allocate if possible, otherwise test higher up","QST.IAS36.000335":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000336":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000337":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000338":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000339":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000340":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000341":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000345":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000346":"Recognising an impairment loss — Asset carried at cost: the loss goes to profit or loss, immediately","QST.IAS36.000347":"Allocating an impairment loss within a CGU — Asset with no recoverable amount of its own and remainder that cannot be allocated","QST.IAS36.000348":"Allocating an impairment loss within a CGU — Asset with no recoverable amount of its own and remainder that cannot be allocated","QST.IAS36.000349":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000350":"Allocating an impairment loss within a CGU — Asset with no recoverable amount of its own and remainder that cannot be allocated","QST.IAS36.000351":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000352":"Allocating an impairment loss within a CGU — The rule: goodwill first, then pro rata","QST.IAS36.000353":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000354":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000355":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000356":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000357":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000358":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000359":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000360":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 1: look for indicators of reversal at each reporting date","QST.IAS36.000361":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000362":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000363":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000364":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000365":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000366":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000367":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000368":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000369":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000370":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000371":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 2: a reversal requires a change in estimates","QST.IAS36.000372":"Recoverable amount: the higher of two measures — The rule: the higher of the two, and sometimes one is enough","QST.IAS36.000373":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000374":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000375":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000376":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000377":"Recognising an impairment loss — The effect on deferred tax","QST.IAS36.000378":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000379":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000380":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000385":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000386":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000387":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000388":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000389":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000390":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000391":"Reversing an impairment loss: indicators, conditions and the cap for an asset — Step 3: the cap on the reversal and how it is recognised","QST.IAS36.000392":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000393":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000394":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000395":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000396":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000397":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000398":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000399":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000400":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000401":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000402":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000403":"Reversal for a CGU: allocation, caps and goodwill excluded — The rule: pro rata excluding goodwill, with a cap per asset","QST.IAS36.000404":"Reversal for a CGU: allocation, caps and goodwill excluded — Goodwill: a permanent loss","QST.IAS36.000405":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000406":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000407":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000408":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000409":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000410":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000411":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000412":"Disclosures about impairment — Level 1: by class of assets and by segment","QST.IAS36.000413":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000414":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000415":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000416":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000417":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000418":"Disclosures about impairment — Level 2: explaining each loss or reversal of the period","QST.IAS36.000421":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","QST.IAS36.000422":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","QST.IAS36.000423":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","QST.IAS36.000424":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","QST.IAS36.000425":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles","QST.IAS36.000426":"Disclosures about impairment — Level 3: CGUs with goodwill or indefinite-life intangibles"}}