Fizzy Beverages invests in the debt and equity securities of other companies. Which statement is true concerning impairment testing of these investments?
A) Impairment testing only occurs for investments with an active market.
B) Impairment is always reported in income if the book value of the investment significantly exceeds its market value.
C) Impairment testing only occurs for investments carried at fair value.
D) Impairment testing is required for debt investments classified as AFS and HTM.
Correct Answer:
Verified
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