Which of the following describes a requirement in IAS 36 Impairment of Assets, when a lessee determines that a right-of-use asset is impaired?
Cease depreciation of the right-of-use asset and subsequently assess for impairment each period through to the end of the lease term
Recognize the impairment charge unless the lease agreement includes a purchase option that is expected to be exercised by the lessee
Recognize an impairment loss and measure the right-of-use asset at the carrying amount immediately after the impairment
Recognize the impairment loss and measure the right-of-use asset at the fair value amount each period through the end of the lease term
According to IAS 36 Impairment of Assets, when a lessee determines that a right-of-use asset is impaired, the appropriate course of action would be to recognize an impairment loss and measure the right-of-use asset at the carrying amount immediately after the impairment. This means that the lessee should recognize an impairment loss and adjust the carrying amount of the right-of-use asset to reflect its reduced value following the impairment assessment. Therefore, the correct answer is:
C. Recognize an impairment loss and measure the right-of-use asset at the carrying amount immediately after the impairment.
