For debt securities, the impairment test is to determine whether "it is probable that the investor will be unable to collect all amounts due according to the contractual terms."

Question

Quizplus · Accepted Answer

The impairment test for debt securities indeed assesses the likelihood that the investor will not be able to collect all amounts due as per the contractual terms, focusing on the creditworthiness of the issuer and the recoverability of the principal and interest.

For Debt Securities, the Impairment Test Is to Determine Whether