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Answer: 350
**Explanation:** Under IAS 36, an impairment loss is measured as the excess of the carrying amount over the recoverable amount of the asset. The recoverable amount is defined as the higher of: 1. Fair value less costs to sell (1,700 - 50 = 1,650) 2. Value in use (1,500). Thus, the recoverable amount is **1,650** (the higher of the two). The impairment loss is calculated as: **Carrying amount (2,000) - Recoverable amount (1,650) = 350**. Option A (300) is incorrect because it represents the impairment loss under US GAAP, which measures the loss as the difference between the carrying amount and fair value (2,000 - 1,700 = 300). Option C (500) is incorrect because it calculates the recoverable amount as the lower of fair value less costs to sell and value in use (1,500), leading to an impairment loss of 500 (2,000 - 1,500).
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An analyst gathers the following information (in € thousands) about a company's equipment reported under the cost model: Carrying amount before impairment: 2,000 Undiscounted expected future cash flows: 1,800 Fair value: 1,700 Value in use: 1,500 Costs to sell: 50 The impairment loss (in € thousands) is:
A
300
B
350
C
500