Applying IFRS, the test for an impairment loss for long-lived assets other than nonamortized intangibles and goodwill compares the balance sheet carrying value with the asset's
A)recoverable amount.
B)sum of the undiscounted cash flows.
C)sum of the discounted cash flows.
D)expected future value.
E)fair market value.

Question

Quizplus · Accepted Answer

According to IFRS, the test for impairment loss for long-lived assets (other than nonamortized intangibles and goodwill) is to compare the carrying value with the recoverable amount, which is the higher of the asset's fair value less costs to sell and its value in use. Therefore, choice A is the correct answer.

Applying IFRS, the Test for an Impairment Loss for Long-Lived