Under U.S.GAAP and IFRS reporting standards, management assesses the firm's assets for impairment at each reporting date by determining if impairment indicators are present.Impairment indicators include
A)the decline in the market value of an asset significantly beyond what would be expected because of use or the passage of time.
B)significant adverse changes in the entity's technological environment.
C)significant adverse changes in the entity's economic environment.
D)significant adverse changes in the entity's legal environment.
E)all of the above

Question

Quizplus · Accepted Answer

Under U.S.GAAP and IFRS reporting standards, impairment indicators include a decline in the market value of an asset significantly beyond what would be expected because of use or the passage of time, significant adverse changes in the entity's technological environment, significant adverse changes in the entity's economic environment, and significant adverse changes in the entity's legal environment. Therefore, all of the above options are impairment indicators that management must consider during the assessment of the firm's assets for impairment at each reporting date.

Under USGAAP and IFRS Reporting Standards, Management Assesses the Firm's Assets