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.A is true but R is false
B.Both A and R are true and R is the correct explanation of A
C.A is false but R is true
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
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.
Explanation:
Historically, Indian government accounting is primarily cash-based, tracking the actual flow of funds into and out of government treasuries.
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