ASU 2016-01 attempted to simplify the impairment model for equity securities for which an entity has elected the practicability exception by eliminating the requirement to assess whether an impairment of such an investment is other than temporary. What are the factors to be considered in making this assessment and how is an impairment recorded?

Question

Quizplus · Accepted Answer

The Answer of ASU 2016-01 attempted to simplify the impairment model for equity securities for which an entity has elected the practicability exception by eliminating the requirement to assess whether an impairment of such an investment is other than temporary. What are the factors to be considered in making this assessment and how is an impairment recorded?

ASU 2016-01 Attempted to Simplify the Impairment Model for Equity