CERTYNEX IFRS ACADEMY

Under IAS 28, which statements about objective evidence of impairment of the net investment in an associate are correct? More than one answer is possible.

The net investment is impaired if there is objective evidence resulting from one or more events that occurred after initial recognition.

Significant financial difficulty of the investee may constitute objective evidence of impairment.

A fall in the associate's profit for one year, with no effect on the estimated future cash flows of the net investment, constitutes objective evidence.

The events concerned must have an impact on the estimated future cash flows of the net investment.

An event that occurred before the initial recognition of the investment is enough to recognise an impairment, just like a later event.