A machine has a carrying amount of ₹5,00,000 but circumstances indicate that its recoverable/service value has fallen su...
Type: MCQ • Marks: 1
A machine has a carrying amount of ₹5,00,000 but circumstances indicate that its recoverable/service value has fallen substantially The appropriate response is to:
Options
A. Consider whether an impairment assessment is required under the applicable accounting framework
B. Automatically increase its carrying amount
C. Stop maintaining records
D. Ignore the evidence until disposal
Explanation
Significant indicators of impairment should be evaluated rather than ignored.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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