S1: Under Ind AS 36, an impairment loss recognized in prior periods for an asset other than goodwill must be reversed if there has been a change in the estimates used to determine the asset's recoverable amount. S2: The increased carrying amount of an asset due to reversal of an impairment loss cannot exceed the carrying amount that would have been determined had no impairment loss been recognized. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Under Ind AS 36, an impairment loss recognized in prior periods for an asset other than goodwill must be reversed if there has been a change in the estimates used to determine the asset's recoverable amount. S2: The increased carrying amount of an asset due to reversal of an impairment loss cannot exceed the carrying amount that would have been determined had no impairment loss been recognized. Which statement(s) is/are correct?
A. Both S1 and S2
B. Neither S1 nor S2
C. S2 only
D. S1 only
Answer: Option A
Solution (By JKSSB Mock Tests)
Both statements are correct as per Ind AS 36. Impairment losses (except for goodwill) must be reversed when conditions change, but the asset's carrying amount cannot exceed its hypothetical carrying amount (net of depreciation) had no impairment occurred.
Explanation:
Normal idle time is charged to Factory Overheads, while abnormal idle time (e.g., strikes, power failure) is charged to the Costing P&L Account.
Explanation:
Revised return can be filed up to 3 months before the end of relevant assessment year or before completion of assessment, whichever is earlier.
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