U.S.GAAP requires firms to recognize an impairment loss on a nonamortized intangible other than goodwill whenever the carrying value of the asset exceeds its
A)undiscounted cash flows less cost to sell.
B)replacement cost less cost to sell.
C)undiscounted cash flows.
D)present value of future cash flows.
E)fair value.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, firms are required to recognize an impairment loss on a nonamortized intangible asset other than goodwill when its carrying amount exceeds its fair value. This is a test to determine if the asset is impaired, and if so, to measure the amount of impairment loss to be recognized.

USGAAP Requires Firms to Recognize an Impairment Loss on a Nonamortized