Which use the term impairment to indicate that a receivable may not be collected?
A) Neither IFRS nor GAAP.
B) Both IFRS and GAAP.
C) IFRS but not GAAP.
D) GAAP but not IFRS.

Question

Quizplus · Accepted Answer

Both IFRS and GAAP use the term impairment to indicate that a receivable may not be collected. Impairment is the decrease in the value of an asset or a decrease in an asset's ability to generate revenue. In the context of receivables, impairment is the recognition that a customer is unlikely to pay the remaining balance on an outstanding debt. IFRS and GAAP have slightly different rules for how impairment should be recognized, measured, and disclosed, but both standards use the term impairment in the context of receivables.

Which Use the Term Impairment to Indicate That a Receivable