The U.S. GAAP impairment test for equity method investments requires recognition of impairment losses when:

Question

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Under U.S. GAAP, an impairment loss for equity method investments is recognized when the investment's fair value is less than its carrying value and the decline in value is considered other than temporary. This approach focuses on the sustainability of the investment's value rather than temporary fluctuations.

The US GAAP Impairment Test for Equity Method Investments Requires Recognition