Assertion (A): Under Ind AS 36, if an impairment loss is recognized, the depreciation charge for the asset must be adjusted in future periods. Reason (R): The depreciation charge is based on the revised carrying amount of the asset after the impairment loss. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. A is false but R is true
C. Both A and R are true but R is NOT the correct explanation of A
D. A is true but R is false
Answer: Option A
Solution (By JKSSB Mock Tests)
Ind AS 36 requires that after recognizing an impairment loss, the asset's depreciation charge must be adjusted to allocate the revised carrying amount over its remaining useful life. R correctly explains A.
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