If an entity does not expect to recover the carrying amount of an asset, the entity has incurred:
A) an impairment loss;
B) a depreciation expense;
C) an amortisation cost;
D) a loss on disposal.

Question

Quizplus · Accepted Answer

If an entity does not expect to recover the carrying amount of an asset, there is an indication of impairment, and the entity must perform an impairment test. If the carrying amount exceeds the recoverable amount, the entity must recognize an impairment loss.

If an Entity Does Not Expect to Recover the Carrying