Equipment on hand which is no longer used in operations but which the auditor has physically verified as being in existence does not need to be evaluated for potential impairment.

Question

Quizplus · Accepted Answer

Even though the equipment is still in existence, it may still need to be evaluated for potential impairment if it is no longer being used in operations. The value of the equipment may have decreased due to obsolescence or other factors, and impairments may need to be recognized in the financial statements. Therefore, the statement given in the question is incorrect.

Equipment on Hand Which Is No Longer Used in Operations