If a receivable is individually significant but is not
proven to be impaired, the receivable ...
a. No need to calculate impairment
b. Declining value of 0 because there is no objective
evidence
c. Calculated with decreases together with collective
receivables
d. Calculated using an aging schedule
Answer is option C
c. Calculated with decreases together with collective receivables
The receivables which are individually significant in nature are considered to be separately for impairment purpose and if they are impaired they are recognized by the company. Ifimpaired, the company recognizes it. However, if receivables individually assessed are not proven to be impaired should be included with a group of assets having similar credit-risk characteristics and are assessed collectively for impairment.
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