CPA- FAR: US GAAP Impairment Test:
1) General Rule
2) Exceptions and Rules

Question

US GAAP Impairment Test:
1) General Rule
2) Exceptions and Rules

LandiniLizard · Accepted Answer

1) Sum of Undiscounted CFs > CV = Impaired; Impairment = FV - CV
2) Intangible Assets with Indefinite Lives; FV - CV if negative is impairment/amount impaired

If assets are held for sale, then add disposal costs to impairment loss

CPA- FAR

US GAAP Impairment Test: 1) General Rule 2) Exceptions and Rules

1) Sum of Undiscounted CFs > CV = Impaired; Impairment = FV - CV 2) Intangible Assets with Indefinite Lives; FV - CV if negative is impairment/amount impaired If assets are held for sale, then add disposal costs to impairment loss

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