Firms conduct an impairment test whenever impairment indicators indicate that property, plant and equipment or finite-life intangibles may be impaired.

Name: Firms conduct an impairment test whenever impairment indicators indicate that property, plant and equipment or finite-life intangibles may be impaired.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms are required to conduct an impairment test when there are indicators that the carrying amount of an asset may not be recoverable, as per accounting standards.

Firms Conduct an Impairment Test Whenever Impairment Indicators Indicate That