ASPE requires that assets must be assessed for indications of impairment
A) at the end of each reporting period.
B) at the end of every quarter.
C) when events and circumstances indicate that asset's carrying amount may not be recoverable.
D) whenever the method of depreciation has changed.

Question

Quizplus · Accepted Answer

According to ASPE, assets must be assessed for indications of impairment "when events and circumstances indicate that the asset's carrying amount may not be recoverable." This means that impairment must be evaluated on an ongoing basis, rather than only at the end of each reporting period or when there is a change in depreciation method. While a company may choose to perform impairment tests more frequently than required, the minimum requirement is to assess for impairment when there are indications that the asset's carrying amount may not be recoverable.

ASPE Requires That Assets Must Be Assessed for Indications of Impairment