U.S.GAAP provisions require a three-step procedure for measuring and recording impairments for long-lived assets other than nonamortized intangibles and goodwill.An asset impairment loss arises when the carrying values of the assets
A)exceed the sum of the discounted cash flows.
B)exceed the sum of the undiscounted cash flows.
C)exceed the replacement cost.
D)exceed the fair market value less cost to sell.
E)exceed the fair market value.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, an impairment loss for long-lived assets (other than nonamortized intangibles and goodwill) is recognized when the carrying amount of the asset is not recoverable and exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.

USGAAP Provisions Require a Three-Step Procedure for Measuring and Recording