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IFRS 15 requires that capitalized contract cost assets are amortized and tested for impairment. Which...

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Accounting

IFRS 15 requires that capitalized contract cost assets are amortized and tested for impairment. Which of the following statements is NOT correct? Select all that apply.

After initial capitalization contract costs must be amortized with the amortization expense recognized in profit or loss on a systematic basis consistent with the pattern of the entitys transfer of the related goods or services to the customer.

After recognizing an impairment loss on capitalized contract costs incurred to obtain or fulfill a contract with a customer, impairment losses recognized in accordance with other standards such as IAS 36 Impairment of Assets must be considered

An impairment of the contract cost asset exists if the carrying amount of the contract cost asset exceeds the remaining consideration the entity expects to receive less costs for the related goods or services that have been recognized as expenses.

Capitalized contract costs must be amortized to profit or loss on a straight-line basis unless another systematic basis reflects the expected pattern of consumption of the future economic benefits embodied in the capitalized contract cost asset.

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