Which use the term impairment to indicate that a receivable may not be collected?

Question

Quizplus · Accepted Answer

Both IFRS and GAAP use the term impairment to indicate that a receivable may not be collected. Under both frameworks, impairment occurs when there is evidence that the future cash flows expected to be received from a receivable are less than the carrying amount of the receivable. The impairment loss is then recognized and reported on the financial statements.

Which Use the Term Impairment to Indicate That a Receivable