Asked by
JUVEN LOGAGAY
on Dec 06, 2024Verified
An impairment loss must be recognized when an asset's
A) book value is lower than its fair value
B) book value is higher than its fair value
C) present value is lower than its fair value
D) present value is higher than its fair value
Impairment Loss
The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
Fair Value
The estimated market value of an asset or liability, reflecting the price it would fetch in an orderly transaction between market participants at the measurement date.
Book Value
The net value of a company's assets, minus its liabilities, as it appears on the balance sheet.
- Acknowledge the prerequisites and ramifications involved in asset impairment.
Verified Answer
DH
Learning Objectives
- Acknowledge the prerequisites and ramifications involved in asset impairment.