IFRS MYSTERIES 4

(Asset is idle, Obsolescence or damaged)

Asset is idle, Obsolescence or damaged

(A smallest group of assets with independent identifiable cashflows, is called Cash generating unit.)

A smallest group of assets with independent identifiable cashflows, is called Cash generating unit.

(Impairment can be reversed only if there is an increase in actual recoverable value of the asset or CGU.)

Impairment can be reversed only if there is an increase in actual recoverable value of the asset or CGU.

(Contingent liability contains a probable obligation arising out of uncertain future events.)

Contingent liability contains a probable obligation arising out of uncertain future events.

(If there are multiple probable outcomes, a weighted average value shall be taken as provision.)

If there are multiple probable outcomes, a weighted average value shall be taken as provision.

(When the actual expense gets incurred, it has to be netted off with already recorded provision for that.)

When the actual expense gets incurred, it has to be netted off with already recorded provision for that.

(Development expenses are allowed to be capitalized only if they meet all of 6 conditions given below.)

Development expenses are allowed to be capitalized only if they meet all of 6 conditions given below.

(IAS 24 governs principles for disclosure of relationship for related parties of an entity.)

IAS 24 governs principles for disclosure of relationship for related parties of an entity.