The comparison of the carrying amount of an asset to its recoverable amount is referred to as:

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The comparison of the carrying amount of an asset to its recoverable amount is referred to as impairment testing. This is done to determine if the asset's value has declined and if a write-down or impairment is necessary. Derecognition is the removal of an asset from an entity's balance sheet, and depreciation is the systematic allocation of the cost of an asset over its useful life. None of these options deal specifically with the comparison of the carrying amount to the recoverable amount.

The Comparison of the Carrying Amount of an Asset to Its