Non-current assets are being audited and the following factors have been discovered: Motor vehicles are depreciated at 25% pa straight line (full year charge in the year of acquisation, no charge in...

Non-current assets are being audited and the following factors have been discovered: Motor vehicles are depreciated at 25% pa straight line (full year charge in the year of acquisation, no charge in the year of disposal). The cost of the vehicles at the end of the period is $200.000 and the depreciation charge for the year is $50.000. Because mosts care are kept for at least 5 years the company is thinking of changing its depreciation rate for cars to %20 pa. So that the charge would become $40.000.

17. Which of the following is correct?

a) Impairement of a non-current asset could be identified by recalculation

b) Impairement of a non-current asset could be identified by inspection

c) Impairement of a non-current asset could be identified by analytical procedures

d) Impairement of a non-current asset could be identified by reperformance