If a receivable is deemed to be individually impaired, the impairment loss is calculated as the difference between the carrying amount (generally the principal plus accrued interest) and the expected future cash flows discounted at the loan's historical effective-interest rate.

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Quizplus · Accepted Answer

The impairment loss for a receivable is calculated by comparing the carrying amount to the present value of expected future cash flows, discounted at the loan's historical effective-interest rate, as per accounting standards.

If a Receivable Is Deemed to Be Individually Impaired, the Impairment