An impairment loss is equal to the amount by which book value exceeds the fair value of a long-term asset.

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This statement is true. An impairment loss is recognized when the carrying value of a long-term asset exceeds its fair value, which represents the amount the asset could be sold for in an arm's length transaction. The impairment loss is equal to the difference between the book value (i.e. carrying value) of the asset and its fair value.

An Impairment Loss Is Equal to the Amount by Which