When the value of an intangible asset is impaired,the change in the value of the asset is:
A) recognised as a charge in the statement of comprehensive income
B) recognised as a charge to equity
C) amortised over a period not exceeding 20 years
D) all of the above

Question

Quizplus · Accepted Answer

When the value of an intangible asset is impaired, the change in the value of the asset is recognised as a charge in the statement of comprehensive income. This is because impairment means that the value of the asset has decreased below its carrying amount, and this decrease in value is considered an expense in the accounting period.

Therefore, choice A is the best choice as it correctly identifies the recognition of impairment charges in the statement of comprehensive income. Choice B is not correct because impairment charges are not recognised as a charge to equity. Choice C is not correct because impairment charges are not amortised over a period, but rather recognised as an expense in the accounting period in which the impairment occurred. Choice D is also not correct because only choice A is the best choice.

When the Value of an Intangible Asset Is Impaired,the Change