IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under U.S. GAAP - comparing the undiscounted cash flow to the carrying amount. As a result, the IFRS test is

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IFRS is more strict than U.S. GAAP because it requires an impairment loss to be recognized if the carrying amount exceeds the recoverable amount, without the initial recoverability test used in U.S. GAAP.

IFRS Uses a Fair Value Test to Measure Impairment Loss