Under ASPE, to determine if there is an impairment loss, compare the
A) fair value of the identifiable assets to the book value of the assets.
B) fair value of the reporting unit to the carrying value of the reporting unit.
C) imputed current fair value of the assets with the carrying value of the assets.
D) imputed carrying value of the assets with the fair value of the assets.

Question

Quizplus · Accepted Answer

Under ASPE, the impairment loss is determined by comparing the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value is less than the carrying value, an impairment loss is recognized. This is in accordance with the standard's requirement to assess goodwill and indefinite-lived intangible assets for impairment at the reporting unit level.

Under ASPE, to Determine If There Is an Impairment Loss