What is impairment testing of tangible capital assets based on?
A)Impairment of future cash flows
B)Impairment of future service potential
C)Impairment of anticipated residual value
D)Impairment of net present value

Question

Quizplus · Accepted Answer

Impairment testing of tangible capital assets is based on impairment of future service potential. This means that the value of the asset is assessed based on its ability to provide future benefits or services, rather than on its anticipated residual value or net present value. The focus is on whether the asset will continue to be useful in the future and provide value to the organization.

What Is Impairment Testing of Tangible Capital Assets Based On