Under U.S.GAAP and IFRS reporting standards, management assesses the firm's assets for impairment at each reporting date by determining if impairment indicators are present.Impairment indicators do not include
A)the decline in the market value of an asset significantly beyond what would be expected because of use or the passage of time.
B)significant adverse changes in the entity's technological environment.
C)significant adverse changes in the entity's economic environment.
D)significant adverse changes in the entity's legal environment.
E)significant adverse changes in the entity's Chief Executive Officer's health.

Question

Quizplus · Accepted Answer

Impairment indicators focus on the asset, not on the CEO's health, and include the factors listed in choices A through D that could indicate that an asset's value has declined significantly and may need to be written down.

Under USGAAP and IFRS Reporting Standards, Management Assesses the Firm's Assets