Which of the following events provide objective evidence that a financial asset has been
Impaired:
I - A default in interest payments.
II - The borrower enters into bankruptcy.
III - Significant financial difficulty of the issuer.
IV - The downgrade of an entity's credit rating.
A) I, II and III only.
B) II, III and IV only.
C) I, III and IV only.
D) II and IV only.

Question

Quizplus · Accepted Answer

Default in interest payments, bankruptcy, and significant financial difficulty are objective evidence of impairment. A downgrade in credit rating alone is not sufficient evidence.

Which of the Following Events Provide Objective Evidence That a Financial