In impairment disclosures, which additional information is required besides the amount recognised in SPLOCI?

In impairment disclosures, which additional information is required besides the amount recognised in SPLOCI?

• A. Which line item(s) of the SPL those impairment losses are recognised
• B. The asset's last audit date
• C. The expected date of full recovery of the impairment
• D. The market price of the asset at year end

Answer: (A)

When impairment losses are recognised, the disclosure should show where those losses sit in the financial statements—the specific line item or items in the SPLOCI (the statement of profit or loss and other comprehensive income) that the impairment is charged to. This helps users see exactly how the impairment affects reported profit and which asset category or function is pulling the figure. The other options aren’t standard impairment disclosures: a last audit date isn’t relevant to impairment, there’s no required disclosure about when full recovery will occur, and market price at year end isn’t a required impairment detail. So the essential extra information is identifying the line item(s) of the SPLOCI where the impairment loss is recognised.

When impairment losses are recognised, the disclosure should show where those losses sit in the financial statements—the specific line item or items in the SPLOCI (the statement of profit or loss and other comprehensive income) that the impairment is charged to. This helps users see exactly how the impairment affects reported profit and which asset category or function is pulling the figure. The other options aren’t standard impairment disclosures: a last audit date isn’t relevant to impairment, there’s no required disclosure about when full recovery will occur, and market price at year end isn’t a required impairment detail. So the essential extra information is identifying the line item(s) of the SPLOCI where the impairment loss is recognised.