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?
Explanation:
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.
Assertion (A): Audit sampling involves applying audit procedures to less than 100% of items within a population. Reason (R): Audit sampling eliminates the risk of drawing a false conclusion about the entire population. Choose the correct option.
A.Both A and R are true but R is NOT the correct explanation of A
B.A is false but R is true
C.A is true but R is false
D.Both A and R are true and R is the correct explanation of A
Explanation:
A is true as per SA 530. R is false because audit sampling inherently carries sampling risk, meaning it cannot completely eliminate the risk of drawing a false conclusion.
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