The amount of impairment loss is the excess of book value over:
A)Carrying value.
B)Undiscounted future cash flows.
C)Fair value.
D)Future revenues.

Question

Quizplus · Accepted Answer

The amount of impairment loss is the excess of book value over fair value. Fair value represents the amount that an asset could be sold for in an arm's length transaction between knowledgeable and willing parties, which is considered the most objective measure of an asset's value.

The Amount of Impairment Loss Is the Excess of Book