If an asset is impaired, the company is required to adjust the carrying value downward from its book value to its fair value.

Name: If an asset is impaired, the company is required to adjust the carrying value downward from its book value to its fair value.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

This statement is true. When an asset is impaired, the company is required to adjust the carrying value downward from its book value to its fair value, in order to properly reflect the decrease in the asset's value.

If an Asset Is Impaired, the Company Is Required to Adjust