If the net present value of the expected cash flows from the use of the asset and its disposal is greater than the carrying value of an asset,then the asset is considered to be impaired.

Question

Quizplus · Accepted Answer

An asset is considered to be impaired when its carrying value exceeds the recoverable amount, which is the higher of an asset's fair value less costs to sell and its value in use (the net present value of the expected cash flows from the use of the asset and its disposal).

If the Net Present Value of the Expected Cash Flows