CERTYNEX IFRS ACADEMY

After an impairment loss has been recognised on a depreciable item of equipment, on what basis is the depreciation charge for subsequent periods computed?

On the original cost less residual value, spread over the total useful life initially estimated

On the carrying amount after impairment, less residual value, over the remaining useful life

On the carrying amount after impairment, without deducting the residual value

No further charge is recognised, the impairment loss replacing future depreciation until the asset is derecognised