If an asset has a carrying value of $2,000 and its recoverable amount is $2,500, then $500 impairment loss has been incurred.

Name: If an asset has a carrying value of $2,000 and its recoverable amount is $2,500, then $500 impairment loss has been incurred.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount. In this case, since the recoverable amount ($2,500) is higher than the carrying value ($2,000), no impairment loss has been incurred.

If an Asset Has a Carrying Value of $2,000 and Its