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Under Current Standards, When Is an Impairment Loss Reported on a Significant

Question 73

Multiple Choice

Under current standards, when is an impairment loss reported on a significant influence investment in the stock of another company, following U.S. GAAP and IFR?


A) U.S. GAAP: Carrying value exceeds fair value, and the decline is other than temporary. IFRS: Carrying value is greater than the higher of market value or value-in-use, and a loss event has occurred.
B) U.S. GAAP: Book value is greater than the higher of market value or value-in-use, and the decline is other than temporary. IFRS: Carrying value exceeds fair value, and the decline is other than temporary.
C) U.S. GAAP: Not reported IFRS: Carrying value is greater than the higher of market value or value-in-use, and a loss event has occurred.
D) U.S. GAAP: Carrying value is greater than the higher of market value or value-in-use, and a loss event has occurred. IFRS: Not reported

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