“Impaired Assets and Depreciation Methods” Please respond to the following:
- From the e-Activity, summarize the authoritative guidance for asset impairments under IFRS. Give at least two (2) examples of events that could cause an asset to be tested for impairment, and recommend the best method to determine the fair value of an impaired asset. Explain the rationale for your recommendation
- Go to the International Financial Reporting Standards (IFRS) Website, located at http://www.ifrs.org, to review authoritative guidance for asset impairments.Note: In the search field at the top right of the screen, type in “asset impairment.” Be prepared to discuss.
- Differentiate between the decreasing-charge depreciation methods and the special depreciation methods, and suggest the method that would result in the highest depreciation during the first year of operations. Imagine you are a manager at Delta Airlines and are giving a presentation to the Board of Directors concerning the best depreciation method to use for the purchase of twenty-five (25) new aircrafts. Explain to the Board the method that would result in the highest depreciation charge for the next five (5) years.